The Economist recently published a special report on China and America (”Round and round it goes“). As the title suggests, the article described the increasing interdependency between the economies of the US and China. In a nutshell, China maintains an undervalued currency, in order to stimulate exports. The resulting overseas (American) demand puts upward... »
On October 20, the executive office of the government of Brazil enacted an emergency measure, calling for a 2% tax on on all foreign capital inflows. And with one foul swoop, this year’s 35% rise in the Real had come to an end, right? The tax certainly took investors by surprise, with the Brazilian stock... »
By all accounts, the decline of the US Dollar has been measured, and without incident. This, despite the fact that most investors reckon the Dollar is doomed, both from a long-term and a short-term perspective. What, then, is preventing an all-out collapse? Personally, I think the best answer is that Central Banks (and their sponsoring... »
The Canadian Dollar fell from parity with the US Dollar in July 2008. For a minute, it looked as though it would return to that mark in October 2009. Alas, it was not to be, as the currency that had risen 20% since March wasn’t able to rise another 3% to close the elusive... »
According to a recent Merril Lynch (Bank of America) survey, Europe has officially returned to favor among investors. “A net 30% of global portfolio managers see euro-zone equities as undervalued relative to other regions, the highest reading since April 2001. A net 11% are overweight Europe, the first overweight allocation in nearly two years,... »
The USD is rebounding from a 15 month low, GBP is weakening pressured by warning from Fitch that the UK credit rating is most at risk, UK economic data continues to show improvement with report of better retail sales and higher house prices, EUR drops as German Zew index posts… more from... »
In truth be told, investors and the U.S citizens remain worried robustly over the outlook of the world’s largest economy and the stock markets, as on one hand overall earnings posted by huge known American Corporations are cheerful and better-than forecasted, while on the other hand the present economic conjuncture… more from... »
Overall, the dollar index strengthened throughout the Asian session, but as the market headed towards the European open, the dollar gave up to most of its gains. The pair most affected by the selling was the pound, which plunged 150 pips from the Asian session open. Right now, the currency… more from... »
In Currencies: the GBP was broadly lower on the back of the Fitch initial comments about the potential for the UK to lose its “AAA” sovereign rating. GBP/USD slumped to test 1.6602 before rebounding back above the 1.67 handle as the NY morning approached. Pound was able retrace a large… more from... »
The rally in risk that pushed US stocks significantly higher into the close last night begun to dwindle in Asian hours. Asian stocks closed higher on the day but well off their intraday highs and European stock indices are mixed to lower. EUR/USD pushed lower in Asian hours as stocks… more from... »