Europe

Highlights The US dollar was mostly firmer vs. the majors.  EUR/USD made a marginal new low for the cycle at 1.2111, helped by rumors about France (see below) but then spiked higher during North American trading before closing lower…

Highlights The US dollar has begun the new month off on strong footing against both and emerging market currencies.  The yen is the sole exception.  There are three drivers today.  The first is economic data from China and…

Deepwater Horizon Gulf Oil Production by Water Depth - Paul Kedrosky 1997 Warning on Deep Blowouts: ‘Options Are Limited’ - Dot Earth Blog - NYTimes.com WELL CONTROL Ultra-deepwater blowouts - how could one happen – Offshore…

Increasingly policy makers and investors are thinking about the consequences of the European financial crisis. The following focuses on two such consequences that are unlikely to appear on other lists.

Two notes from Andy Lees of UBS confirmed for me that a slowdown in China is underway and that developments in Europe are adding to the pressure.  In my view, this may mean a second-half reversal of the tightening we have seen in China…

The euro has surrendered its earlier gain, dropping a full cent from the session highs set in early Europe just above $1.2450. The short-term technical indicators were a bit stretched, but the proximate cause seems to be news from the…

The US dollar is mostly little changed today. The main feature is the covering of short euro positions and this has lifted the single currency to new four-day highs against the dollar. As we have noted in recent days, its downside momentum…

Mohamed El-Erian, the CEO of PIMCO, the world's largest bond fund, says the new normal for industrial countries is low growth, re-regulation and deleveraging.

Below is a video of the conversation on News Night last night in the UK about the European Credit Crisis. Participants were Hugh Hendry, Gillian Tett and Jeffrey Sachs.

Three month dollar LIBOR has edged up again today.  It has risen every day since May 10th, though the pace has slowed.  This reflects the demand for dollar funding.  While the focus in on European banks, the scramble to…