Archive for October 3rd, 2013

Foreign Exchange Insights and Next Week

In Contempt of the People

October 3, 2013

In assessing investment opportunities, it’s unwise but not uncommon to compartmentalize economics and politics.  Sooner or later, the worlds of politics and economics converge especially in the arena of foreign exchange.  Italy, which for decades was characterized as a good dynamic private economy coexisting with a totally dysfunctional government, exemplifies this merger.  The lira was […] More

Deeper Analysis

Smallest U.S. Service Sector Advantage against Euroland since July 2011

October 3, 2013

The U.S. non-manufacturing purchasing managers index fell 4.2 points to a 3-month low and was three points weaker than forecast for the month of September.  The euro area PMI, in contrast, climbed 1.5 points to a 27-month high of 52.2 and surpassed original market expectations by a full point.  As a result of these divergences, […] More

New Overnight Developments Abroad - Daily Update

American Brand Image Sinking on Political Circus in Washington

October 3, 2013

No progress was made on the U.S. budget stalemate.  A much longer shutdown of the federal government than in 1996 seems assured, and odds of a default are rising.  Predictions of the start of Fed tapering have accordingly been pushed out to next March, mid-2014 or later.  The dollar touched a new overnight low of […] More