yuan
Opening Currency Market Act of 2012
January 5, 2012
The dollar started 2012 on a high note just as it did in the first week of three of the past five years. Between yearend and January 7, the dollar appreciated against the euro by 3.6% in 2011, 2.5% in 2009 and 1.4% in 2007. It was unchanged in the first week of 2010 and [...] More
Slightly Softer Dollar on Final Trading Day of 2011
December 30, 2011
The dollar depreciated overnight by 0.3% against the yen and both Aussie and New Zealand dollars. It also eased 0.1% against the Swiss franc and was fixed in China at CNY 6.3009, its softest fixing since the July 21, 2005 revaluation of the yuan. However, the greenback edged 0.1% higher against the euro and appears [...] More
Currency Volatility Presents Another Problem in a Difficult Policy Environment
October 14, 2011
The factors that bolstered the dollar strongly in September abruptly shut down this month. For one thing, a new calendar quarter, and one that oftentimes has not been a good one for the dollar, has begun. Two, a string of better-than-expected U.S. economic data has created more than reasonable doubt that a recession is at [...] More
Risk Aversion Isn’t Over until It’s Over
October 7, 2011
Don’t be fooled by the latest respite from risk aversion. Such will return and generally linger around for considerably longer. More about that in a moment after some quick comments on specific currencies. The euro/dollar key relationship is currently trading very near the $1.3375 average level for the nearly eight years that Jean-Claude Trichet has [...] More
The First Six Weeks of 2011 in Forex
February 13, 2011
Major dollar relationships have traded in generally narrow ranges for the most part so far this year. A number of themes have emerged, which in the aggregate have not imparted any cumulating movement to currency markets. Investors are watching The U.S. labor market. While the growth of jobs has remained slow, the unemployment rate and [...] More
Stocks Rebound After Chinese Data Release
October 13, 2010
Equities advanced 2.4% in India, 2.0% in Sri Lanka, 1.8% in Indonesia, 1.6% in Thailand, 1.7% in Singapore, 1.5% in Hong Kong, 1.4% in China and 0.7% in the Philippines and Malaysia. Stocks are up 1.4% in Germany and France and by 1.2% in Britain. Stocks lagged well behind in Japan (0.2%) and were unchanged [...] More
New Wave of Risk Aversion
October 12, 2010
Typical of a more risk adverse market, the dollar is higher except against the yen and Swissy. Stocks, commodity prices and sovereign bond yields are lower. After a three-day weekend, the Nikkei dropped 2.1%. The Paris Cac, British Ftse and German Dax currently show declines of 1.3%, 0.9%, and 0.6%. Equities also fell by 1.7% [...] More
Third-Quarter Wind-Down
September 30, 2010
Many data releases arrived on this final day of the third calendar quarter. Sentiment is better toward Europe and more guarded about Japan and the United States. ECB 12-month and 6-month loans totaling EUR 93 billion are expiring. EUR 28 billion of 3-month ECB liquidity is not getting rolled over, as a EUR 104 billion [...] More
Softer Pound on a Quiet Day
September 6, 2010
Canadian and U.S. markets will be shut today for Labor Day holidays. No meaningful data releases from markets that are open. Main currency movements have been a 0.6% drop of sterling, a 0.4% further recovery of the kiwi, and a 0.3% advance of the Chinese yuan. Market chatter surfaced that the Bank of England may [...] More
Few Feeling Confident or Lucky on This Friday the Thirteenth
August 13, 2010
A mid-August Friday afternoon and Friday the thirteenth no less would be a precarious place for currency traders to sit in the best of circumstances, and these are certainly not that. Trouble lurks wherever one peers, and the market reaction is risk aversion. Start with the U.S. economy because that is where perceptions have been [...] More
