Swissy
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
Currencies More Sensitive to Global Growth Than Growth in Particular Economies
July 9, 2010
A more resilient euro has coincided with better-than-expected European data, but the rise from $1.1878 in early June doesn’t reflect strong confidence the short-term to medium-term economic outlook for the region. Industrial production during May recorded monthly advances of 2.6% in Germany, 1.7% in France, 1.0% in Italy, 2.6% in Sweden and 0.7% in Britain. […] More
Swissy Strengthens, Kiwi Weakens
June 28, 2010
The summit of G-20 leaders in Toronto over the weekend released a statement that had something for everybody. Omitted any reference to the yuan or, more generally, foreign exchange conditions and policy coordination. Identified a strengthening recovery as the key near-term priority. Warned of the downside risk from a synchronized fiscal adjustment across several major […] More
Easter Holiday 2010 Finds Key Currencies Marching to Different Beats
April 1, 2010
The euro’s first-quarter range of $1.4882 – $1.3268 lay entirely within calendar 2009’s high-low boundaries of $1.5144 and $1.2458. Until a week ago, euro momentum had been adverse. It subsequently rallied 2.4% to $1.359 but remains 3.5% below the mid-point of this year’s trading range. At times, perceptions that the euro area’s growth prospects are […] More
The Dollar Express
February 19, 2010
The dollar is coming off yet another solid week. While attention continued to be riveted on the high debt and deficits of Euroland’s peripheral countries like Greece, Spain, Portugal and Ireland, the dollar scored its largest advances of the week against the yen, a new development, and sterling, which is an old story. The yen […] More
Interview Discussing Policies of the Swiss National Bank and Bank of Japan
December 18, 2009
Click here for my interview with ForexTV discussing the franc’s appreciation though 1.50 per euro, what the Swiss National Bank might do in response, and the Bank of Japan’s declaration of war against deflation. More
