currencies

EUR/USD headed back below 1.347 as European stocks extend early morning losses; DAX down 2.7%. G20 communiqué indicates that EZ actions to increase EFSF flexibility is likely; details remain light. Singapore’s inflation continued to surge…

USD continues to surge amid safe haven demand; EUR breaks below 1.35, EM currencies drop 1-2.5%. The Fed delivered “Operation Twist” but bleak economic outlook continues to weigh on sentiment. Czech CB remains put, South African CB expected…

Despite pockets of relative outperformance, EM currencies have fared terribly this month and bring to mind parallels with the great EM sell-off of 2008-2009. While a revisiting of the 2008-2009 lows seems too aggressive right now, we are…

European market consolidates ahead of FOMC decision; GBP softer after potential for QE increases . Operation Twist is likely to be supportive of the dollar; dovish actions include QE and inflation target. Hungarian central bank likely to…

Reuters has reported that Bank of China, a dealer in China's foreign exchange market, has stopped doing foreign exchange forwards and swaps with several European banks. Separately, sources say the European banks involved are Societe…

Here’s what I am hearing. At the end, I will tell you how far-fetched I think these things are.

EUR/USD and European stocks recover amid hopes of Greece aid; market shrugs off Italy’s downgrade. BBH Sovereign Credit Rating Model suggests that further downgrades for Italy and Spain are likely.

BRL is one of the worst EM performers today, and continues a string of underperformance (-10.8% vs. USD) that began with the unexpected 50 bp rate cut August 31. Since then, only HUF has done worse at -11.5%. It’s really a confluence of…

In the next series of blog posts, we will look in more detail at fiscal and monetary operations of a nation with a sovereign currency. Before we do that, let us briefly examine the case of the Euro. Let me say that we will not address the…

European stocks snap a four-day amid Greek default concerns; EUR/USD gapped lower near 1.363. Markets this week are likely to be dominated by political risks in Europe, along with FOMC meeting. In the EM space, central banks from Czech…