currencies

BBH CurrencyView Highlights The US dollar is set to end the week higher, up four of the last five trading days, stemming from a combination of fiscal woes in the periphery, heightened geopolitical tensions and waning risk appetite.…

By Win Thin Local Brazil analysts are saying that new measures to curb currency appreciation are basically ready to go. Finance Minister Mantega has reportedly not decided yet if he is going to release details today or not, and that he is…

BBH CurrencyView Highlights The US dollar is stronger, benefitting in part from euro weakness as the sovereign debt returns to the fore and geopolitical tensions linger. The euro fell to the lowest level in a week, down three of the…

About a year ago I wrote a post called "Out of control US deficit spending". The purpose of the post was to begin a series of posts presenting the modern monetary theory (MMT) framework from a deficit hawk's perspective, what I…

By Marc Chandler The yen is largely sidelined as the market's focus is elsewhere--ECB policy trajectory, the European debt crisis, MENA, etc. This is reflected by the fact that dollar-yen volatility (implied 3-month) is sitting on its…

The financial climate has changed radically from when Norway’s Oil Fund was established in 1990. Norway has built up its savings since then by selling enormous quantities of oil and gas, and employing many thousands of workers. By…

I don't think people realize that the Chinese have just made a rather sizable shift in economic policy. The Chinese are moving on multiple fronts now toward a new economic paradigm that includes slower growth but more domestic consumption.…

We have found that the correlation between oil and the Canadian dollar has collapsed. We conduct the correlation analysis on a 60-day rolling basis, using percent change. The correlation peaked at the end of last year near 0.76. It now…

It appears the foreign exchange market is being driven by one overriding consideration and that is that the ECB is going to raise rates as early as next month. The debt crisis on the periphery has been ignored. Fitch cut the outlook for…

Mexico central bank kept rates steady at 4.5% today, as expected. However, it tilted a little more to the hawkish side and supports our view that tightening is likely to start in Q4 11 and not Q1 12 as market is pricing in. Central bank…