currencies

by Marc Chandler At the end of last week, the US and Korea appeared to reach the basis of agreement that will also resuscitate the moribund free-trade effort. In essence it appears that slowing down the liberalization in the auto sector…

Moody’s downgraded Hungary two notches to Baa3, matching the BBB- ratings by both S&P and Fitch. Our model has long put Hungary at junk status, and we note that its implied rating deteriorated further in our latest round to BB/Ba2/BB…

We have long argued that there was less to the EFSF that met the eye due to the need to maintain AAA rating when most members are rated lower. However, to increase the guarantees now could signal that officials are preparing to have to…

I have been in meetings with Very Serious Texas Politicians where secession was earnestly discussed 15 years ago. Do I think that could happen? No. The Fed will never choose hyperinflation, and I do not think you can find 60 Senators to…

James K. Galbraith writes that the National Committee on Fiscal Responsibility and Reform's underlying budgetary analysis is faulty because it rests on the false premise that a country can involuntarily default on a fiat currency it…

Brazil hiked bank reserve requirements on time deposits to 20% from 15% and on cash deposits to 12% from 8%. Measures will take effect December 13 and an estimated BRL61 bln will be removed from the system. Central bank chief Meirelles…

The US dollar rally continued to soften as the market awaits the November jobs report. The market expects a 150k increase in non-farm payrolls with a 158k increase in private payrolls. The ECB must be pleased with itself. The strategic…

Considering taking profit from AUD/JPY at current levels with a stop of 80.76. Stay Long USD/JPY at current levels with a stop of JPY82.46. Enter short AUD/CAD at current levels with a stop of 0.9659. Enter short EUR/NOK at 8.10 with a…

The US dollar rally continued to soften as the market prepares for the ECB rate announcement. The market expects the ECB to announce additional liquidity provisions to attempt to quell the fears emanating from Europe’s liquidity/solvency…

The US dollar rally was interrupted against most of the majors as strong Chinese data supported risk. The fears engulfing the euro toned down a little amid speculation that the ECB could take action tomorrow to contain the debt crisis,…