currencies

By Win Thin Brazil announced that it is allowing its Sovereign Wealth Fund (SWF) to trade currencies and currency derivatives (futures).  The SWF is managed by the Treasury, and so this gives the authorities another channel through…

By Win Thin Even though Greece, Portugal, and Ireland bonds are trading firm today, don’t be fooled into thinking markets are getting more constructive.  ECB has reportedly been actively buying today, and so bond spreads are not…

By Edward Hugh The recent decision of the Turkish Central Bank to lower rather than to raise interest rates in an risky attempt to quench the inflation flames that many feel are threatening to engulf what some call an “overheating”…

By Win Thin After warning of further measures to fight BRL appreciation, Brazil unveiled yet another policy measure in its toolbox. The central bank introduced reserve requirements on local bank dollar short positions this morning in an…

by Win Thin Bank Indonesia kept rates steady at 6.5%, as expected. However, we disagree with its dovish stance. Inflation pressures are rising, and tightening should have begun in 2010. Headline inflation was 7.0% y/y in December, the…

By Edward Harrison American politicians and citizens alike have no clear vision of the costs of a seemingly perpetual trillion-dollar annual deficit. Policy stimulus is focused on maintaining current consumption as opposed to making…

by Marc Chandler One of the market developments that is capturing the imagination (and wallets) of investors is the rally in commodities. As an example, since late Aug '10, when Fed Chairman Bernanke seemed to signal QEII and US economic…

by Win Thin Chile peso is the worst performer today vs. the dollar, down 5% after the central bank announced plans to buy $12 bln in order to weaken the currency. The bank plans to buy $50 mln a day from January 5 to February 9, with…

from the BBH Currency Strategy Team The US dollar is softer on the last trading day of the year with position squaring likely the main driver. With the economic calendar light, the euro traded in narrow ranges throughout most of the…

from the BBH Currency Strategy Team The US dollar extended its Wednesday's losses after softer bond yields prevailed following yesterday's successful auction and light volume weighed on the dollar's tone. The euro traded on a supportive…