Euro
Many Governments Want a Weak Currency, But Not All Can Make it Happen
June 18, 2010
The euro experienced its best week in many months but was not alone in advancing against the dollar. The euro’s gain was pretty much matched by the New Zealand and Australian dollars and surpassed by the Swiss franc. The U.S. dollar dropped about 2% against the yen and around 1% against the British and Canadian [...] More
Weaker Dollar But Strengthening Stocks
June 14, 2010
The dollar has a softer tone, with losses from Friday of 1.4% against sterling, 1.2% versus the euro, 1.1% against the Swiss franc and Australian dollar, 0.8% relative to the kiwi, 0.5% against the Canadian dollar. The greenback is 0.1% firmer against the yen. Market chatter is starting to question whether the dollar is changing [...] More
Euro Can’t Shake Gloom
June 2, 2010
An analysis by Ralph Atkins, Frankfurt correspondent for the Financial Times, in Tuesday’s edition lays out four long-term scenarios for the Euroland’s sovereign debt problem and their respective implications for the euro. Bearing in mind the extreme and widespread gloom among analysts, I found the article’s framework to be a handy way to peer ahead. [...] More
Lots of News In Spite of U.S. and British Holidays
May 31, 2010
U.S. and British markets are closed for Memorial Day and Spring Banking holidays, respectively. Stocks were mixed in the Pacific Rim, with gains of 3.1% in Indonesia, 1.8% in Thailand, 1.3% in Malaysia, 1.1% in Taiwan and South Korea but losses of 2.7% in China, 2.2% in Pakistan and 0.6% in Australia. Japan’s Nikkei edged [...] More
European Currencies Carrying a Downward Bias into Summer
May 28, 2010
The dollar recorded gains of more than 10% against the euro, sterling and Swiss franc from the start of 2010 to this Memorial Day weekend. The main development of the period was a loss of confidence in the short-term and long-term prospects of the euro area. This happened in spite of evidence that an economic [...] More
Verbal Vote of Confidence for Euro from China
May 27, 2010
China’s State Administration of Foreign Exchange released a statement asserting China remains a long-term investor in Europe and denying rumors of any consideration of downsizing its euro portfolio. The statement, although just words (but what else could realistically be said?) boosted world stocks and bond yields while depressing the dollar. British PM Cameron also made [...] More
Weaker Euro
May 24, 2010
The dollar gained 1.5% against the euro, ending last week’s respite for the common European currency. Parts of Germany, France, Netherlands and Norway are closed for Whit Monday. The dollar has also risen 0.9% against the kiwi, 0.7% against the Swissy, 0.5% relative to the Australian dollar and sterling, and 0.1% against the yen. CAD/USD [...] More
Chaotic Currency Conditions Likely to Continue
May 21, 2010
The European debt crisis rolls onward. No enduring solution to the problem exists. Investors for starters want to see Greece, Portugal, and Spain implement very sharp, multiyear programs of deficit reduction and debt containment but would fear the impact on regional growth and would remain dissatisfied if they got their wish. Currencies are only one [...] More
Inflation Round-Up
May 18, 2010
A little more than a year has passed since the severest months of the world recession. Commodity prices are higher now; gold and oil have climbed 31% and 22%, respectively. But demand-pull price pressures, which typically lag the business cycle, have receded in most economies. Euro area data exemplify this pattern. Whereas headline CPI inflation [...] More
Euro Touched 49-Month Low
May 17, 2010
Market movement has grabbed overnight attention in environment of relatively light data and event calendar. The euro touched $1.2232, its weakest value since April 18, 2006. The dollar has risen 0.4% against the euro, Swiss franc, and Canadian dollar. The greenback’s gains have been stronger against sterling and the Aussie dollar (0.9% in both instances) [...] More
