currencies

Once divorce from the euro is complete, Germany will regain its fiscal freedom. This is itself something the Germans should celebrate, providing their government takes advantage of their newfound fiscal freedom. Remember, once it returns to…

While the tightening of global financial conditions is likely in part a trigger for the recent unwind of positioning, the de-leveraging of this extended positioning in equities, commodities and currencies, therefore, is the likely the cause…

The dollar is stronger across the board as periphery strains and soft data weigh on euro This week US data is likely to remain mixed and limit euro’s slide; China’s flash PMI moderates Our sovereign ratings model suggests that the…

The relationship between oil and currencies is no more stable that the relationship between the S&P 500 and currencies. As we noted yesterday in our look at the correlation between a handful of currencies and the S&P 500, it is not…

Many medium term investors are interested in the relationship between currencies and the equity market. There is also a sense among many observers that the market is moving in waves of risk on and risk off. To help shed light on the issue,…

The dollar on its front foot amid concerns over Greek debt woes and global growth worries. Ecofin meeting (15:00 GMT) to discuss Greece and finalize aid package for Portugal; EUR/USD tests recent lows near $1.405. Equities/commodities…

If the strongest argument against going back to the Drachma always was that this would imply default, now that default is coming, why not allow Greece to devalue? As Krugman says, the issue isn’t whether Greece would openly decide to exit…

Is China currently rebalancing? The currency has been appreciating, the PBoC has hiked interest rates four times, and wages have been surging. Because of all of this I am often asked if China has finally begun the long-waited rebalancing…

I ran across a post by Robert Murphy over at the Mises Institute blog on Modern Monetary Theory. Since I have been pushing the idea that the centrality of secular debt accumulation makes some ideas from MMT and Austrian Economics…

Brazil is reportedly imposing trade barriers on auto parts imports and a variety of other products. Imports of 27 products will reportedly have tighter licensing requirements that can take up to 60 days to approve. These are called…