currencies

This Great Graphic, created on Bloomberg, shows the US dollar is threatening to move above a trendline against the Canadian dollar drop off the 2011 and 2012 highs. The proximate cause is the dismal retail sales report., which collapsed…

Serious technical damage on the foreign currencies is being inflicted. The euro is falling through the uptrend drawn off last July (Draghi-induced) lows. It comes in just below $1.3200 today. The next technical target is near…

Sterling is has eclipsed the yen as the main focus in the foreign exchange market. The surprising news that has kicked it to fresh multi-month low was that the BOE is closer to easing policy than has been suspected. While it was a unanimous…

The focus on currency wars distracts from other and arguably more important issues. Much of coverage of the G20 statement focused on the foreign exchange market, but has missed what is likely an even more important story. The G20 have…

When massive private and public sector debts result in a credit collapse and recession, the efforts to pare down the debt is deflationary. Measures to inflate our way out of the situation are likely to fail as households are attempting to…

In November, soon after France and Belgium were forced to pump another 5.5 billion euros into bailed out lender Dexia, the ratings agency Moody's stripped France of its AAA sovereign debt rating. The interesting bit was that Moody's…

Brazilian central bank's highly accommodative policy in the past year and the recent weakness in the Brazilian real has helped boost growth.

Trade data for the US, Germany, Japan and China were released earlier today. While the US, Germany and China had robust export growth that caused their surpluses to swell, Japan's numbers showed weakness despite the recent drop in the value…

Once again some analysts in Europe question the potency of the so-called currency wars launched by Japan and the US. The euro-yen currency cross has had an unprecedented rally, changing the export landscape where Japan and Europe…

“Who is afraid of currency wars?” asks Gavyn Davies in the FT. I have known Gavyn for 25 years and have to confess that he is way out of my league intellectually. He is one of the smartest people I have ever met and, thankfully, also one of…