currencies

It looks so easy. Risk on and risk off. When risk trades are being put on, equity market and commodities prices, like gold and oil, rise. The euro appreciates and the yen sells off. When risk trades come off, just the opposite takes place.…

By Marc Chandler ECB President Trichet is signaling a rate hike and the market debate seems to be between April and May. While the monetary setting may be too easy for Germany, the peripheral countries, where the debt crisis has been…

By Marc Chandler Trichet has stayed true to form and issued relative hawkish signals. Two key points--"strong vigilance" is needed and no reiteration of the mantra that "interest rates are appropriate". He explicitly…

With yields on Portugal now above 7.4%, many are predicting Portugal will soon need a bailout because it cannot reduce its debt load with yields that high. Portugal simply cannot grow its economy fast enough to pare debt with yields that…

from the BBH Currency Strategy Team Highlights The US dollar is consolidating some it weekly losses versus some of the majors ahead of today’s ECB meeting and tomorrow’s jobs reports. The euro, however, maintains a firm tone as the…

From this morning's Breakfast with Dave missive: FIFTEEN REASONS TO LOVE THE LOONIE (WE COULDN’T STOP AT TEN!) Better growth than in the U.S.A. and without need for stimulus Responsible central bank, limiting growth in its…

By Win Thin Russia central bank First Deputy Chairman Ulyukayev confirmed that it has widened the so-called “floating corridor” for the ruble basket to 32.45-37.45 vs. 32.95-36.95.  The band is now 5 rubles wide, and continues a slow…

Highlights The US dollar remains under pressure as the divergent outlook in monetary policy across central banks continue to underpin currency movement. The euro extended its recent gains, just ahead of the yearly high near $1.386,…

By Win Thin Colombia surprised markets with a 25 bp hike to 3.25% late Friday, and marks the first hike of the tightening cycle as the central bank tries to get back ahead of the inflation curve. The deciding factor behind the hike was…

By Marc Chandler The Swedish krona is surging today. Hawkish central bank comments have offset disappointing retail sales figures and there is some talk of some month-end related demand. The euro recorded multi-year lows against the…