Swissie Weakens, Commodity Currencies Strengthen, and Irene Not as Bad as Feared

August 29, 2011

The U.S. dollar rose 1.1% against the Swiss franc but lost 0.6% against the Canadian dollar, 0.7% relative to the kiwi and 0.4% against the Aussie dollar.  Other dollar relationships are pretty steady, with dips of 0.1% against the euro, yuan and sterling and no change in the yen. Britain is closed for a late […] More

Dollar Eased as Overnight Data Came in Mixed

August 23, 2011

The dollar lost 0.8% against the yen, 0.4% relative to the New Zealand and Canadian dollars, 0.3% versus the euro, and 0.2% against the Swissie and Aussie dollar.  The U.S. currency is unchanged against the yuan and sterling. Stocks are mostly higher with gains of 3.9% in South Korea, 3.3% in Taiwan, 2.2% in Australia, […] More

Continuing Retreat of Swiss Franc

August 15, 2011

A press report that the Swiss National Bank is seeking permission from the government for it to impose a CHF/EUR ceiling generated further depreciation in the franc, which at overnight lows of 0.8000 per dollar and 1.1460 per euro was 11.7% and 12.1% below last Tuesday’s highs. Share prices in Asia and Europe overnight were […] More

Lasting Damage from the U.S. Debt Debacle

August 2, 2011

The U.S. House of Representatives approved the deficit ceiling increase Monday.  The Senate is expected to do so this afternoon in time for President Obama to sign the bill before today’s deadline.  But all is not clearly well.  Risk aversion is manifest in the marketplace today. Many consider the compromise a poor bill, and the […] More

No Progress in U.S. Debt Ceiling Talks

July 25, 2011

Risk-on trading has returned.  The Swiss franc and yen rose 1.8% and 0.5% against the dollar, which has also slipped 0.2% against the euro and 0.1% relative to the Canadian and New Zealand dollars.  The dollar has firmed 0.1% against sterling and is unchanged versus the yuan.  Gold leaped 1.2% to $1620.20 per ounce. No […] More

Wishful Hopes Regarding U.S. and Ezone Debt Talks

July 20, 2011

Tuesday’s improved market tone has been extended.  Investors are hopeful that a senate plan will avert a last minute showdown over the U.S. debt ceiling and are looking for a huge effort to emerge from Thursday’s EU summit to stop debt crisis contagion there. Symptomatic of less risk aversion, Ten-year sovereign debt yields firmed seven […] More

Japan to Buy EU-Guaranteed Irish Debt

January 11, 2011

The debt problems of Euroland peripherals and Australia’s floods remain in the forefront. On the European debt issue, Japanese Finance Minister Noda announced plans to purchase about a fifth of the upcoming EU-backed Irish debt issue as a means to promote reserve diversification.  China also plans to participate.  Japan’s announcement lifted EUR/JPY to as high […] More