Archive for July 23rd, 2010

Foreign Exchange Insights and Next Week

Weak Euro Helping Europe and Hurting the United States

July 23, 2010

In disinflationary or deflationary times, it pays to have a depreciating currency.  This lesson was underscored in the Great Depression when Britain went off the gold standard before the United States.  The pound fell, and Britain’s economy faired better than America’s.  The lines of causation between exchange rate changes and economic fundamentals do not only […] More

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Evidence of Stronger-Than-Assumed European Growth as Investors Await Bank Stress Test Results

July 23, 2010

Germany and Britain reported data with huge upside surprises.  Stress tests performed on 91 European banks will begin to get reported today at 16:00 GMT (noon on the U.S. East Coast.  Some Spanish banks are expected to fail.  Investors are already complaining that the test assumptions were not sufficiently rigorous.  Moody’s placed Hungary’s credit rating […] More

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