currencies

By Annaly Capital Management. What is a dollar? As far as we can tell, there is no legal definition of what it is, no statement that begins, “The dollar is…” Instead, the dollar is something that is defined by other things. When the…

As it seems that we are finally about to get something which resembles a stable summer here in Denmark it may seem strange to suddenly start talking about snowballs. Yet, the idea of debt snowball is very relevant in the current environment…

Moody’s upgraded Chile to Aa3 (equivalent to AA-), citing its “financial resilience” after the Feb earthquake.  Moody’s also praised years of solid macro policies, the fiscal surplus rule, and low debt as other factors behind the…

There have been several press reports in recent days, all vehemently denied, that a multilateral effort is underway to put together a special aid package for Spain.  Often times, one hears "where there is smoke, there is…

I am trying to make sense of the revaluation talk that surrounds the Sino-American trade relationship. Here are some thoughts on the issue.  Your comments are appreciated. In the 1920s, the United States was the Alpha Creditor…

Highlights The US dollar is consolidating its recent losses and is enjoying a somewhat firmer tone today.  Although the initial advance in the euro was helped by a favorable news stream, macro-developments do not appear to be driving…

Brazil is getting ready to play its first World Cup game and the real is trading firmly.  For the last three days, the dollar has been flirting with its 100-day moving average, just above BRL1.80.  Today's break below that …

Highlights The US dollar is mixed in choppy trading.  The euro has shrugged off a weaker than expected ZEW survey (28.7 vs. 42.0 consensus after finding a bid near $1.2170.   The BOJ unveiled a new JPY3 trillion loan…

PIMCO is out with its secular outlook for the UK. PIMCO Portfolio Manager and EVP Michael Amey comments on growth and inflation and their effect on UK assets in the new normal of deleveraging, greater regulation and de-globalisation. …

News that Moody's cut Greece's credit rating to Ba1 from A3 is encouraging the market to do what it was already doing and that is paring the euro's earlier sharp gains.   This was a four notch downgrade, which reflects the…