currencies

China's Ministry of Commerce is on the wires saying it will monitor the yuan reform impact on Chinese export companies.   While China is a big exporter it is also a significant importer as well.  The increase in the yuan's…

Ideas that China will allow greater flexibility in the yuan, which for many means appreciation, will have positive impact on Latam currencies.   The Mexican peso and Brazilian real are leading the advance with about 0.66% gain…

Highlights The US dollar is generally softer.  News that China has agreed to make its currency more flexible has captured the imagination of the market and this has been expressed in what are regarded as risk trades.  Among the…

Dennis Gartman made some gold-bullish but euro-bearish comments on Bloomberg on Friday. He sees the play in gold as less about fear and more about reserves, specifically the euro. He says that central banks in China or Indonesia are going…

The US Treasury and the Congress appear to be intensifying pressure on the China to allow the yuan to appreciate.   Other officials may weigh in ahead of the G20 meeting (June 25-27). Congressional support is reportedly strong…

Stress tests on European banks have emerged as a key talking point. The criteria is not clear, though European officials are apparently telling anyone who is interested that the these tests are more robust than the previous tests conducted…

Highlights The US dollar is generally consolidating this week’s losses in quiet and largely uneventful turnover.  The shallowness of dollar bounces warns that the downside correction is not complete.    Given the…

Highlights US dollar was softer vs. the majors, with EUR/USD making a new high for this bounce just above 1.24 (highest since May 28) on relief that Spain bond sale went OK.  We think the current euro rally could go as high as 1.25,…

Just as a point of fact, it bears noting that government debt is a government liability in much the same way that bank notes are. what is the functional difference for the federal government between Treasury securities and bank notes?…

Highlights The US dollar is broadly lower, following a successful Spanish bond auctions and indications that the Swiss National Bank is not prepared to continue the heavy intervention that was reported last month.  After a slow start…