currencies

This is a post I wrote at New Deal 2.0 on the potential for a disastrous trade war. There has been a considerable amount of discussion about current account imbalances in light of last weekend’s failed G20 summit. For the most part, the…

The ECB confirmed market talk that it had stepped up if sovereign bond purchases last week as the debt strains reached crisis levels.  The European central banks bought 1.074 bln euros vs 711 mln the prior week.  This is the most…

Highlights The US dollar is trading with a firm tone against nearly all the major currencies except the Australian dollar and the Canadian dollar as a rise in commodities and equities stoke risk appetite.  The euro continues to…

by Claus Vistesen Life can be incredibly cruel sometimes. Only a week after Bernanke gave markets an early Christmas present with another helicopter drop, the S&P500 is stuttering and it seems, much as many astute observers have…

Highlights The US dollar is on a more solid footing yet continues to consolidate versus the euro as details emerge of a potential Irish bailout.  The uncorroborated rumors of a bailout of Ireland emerged from the G20, narrowing the…

This is a cross-post from New Deal 2.0. On the eve of President Obama’s arrival to the G20 talks in South Korea, a growing chorus of voices is questioning the direction of U.S. monetary policy. Germany’s finance minister, Wolfgang…

The US dollar is little changed against most of the major foreign currencies and is mostly firmer against the emerging markets.  The two main exceptions are the euro, which, while holding above yesterday's lows, continues to…

The BBC's economics editor Stephanie Flanders released this nice little 3-minute video which explains why the so-called currency wars are something you should care about. For me, it is quite significant that South Korea of all countries,…

Irish woes appear to be the main culprit dragging the euro down to its lowest level since Oct 20.  A break of the $1.3650-80 area could signal another two cent decline in the coming days. The flight into German bunds for safety is…

China reported an October trade surplus of $27 billion Wednesday. This is a very big number and not one likely to soothe anger directed at China. It will be very hard for China credibly to argue that it is trying to contribute to global…