Intensifying Risk Aversion

January 20, 2016

Share prices closed down 4.1% in Hong Kong, 3.7% (or 632 points) in Japan, 3.0% in Singapore, 2.3% in South Korea, 2.0% in Taiwan, 1.7% in India, 1.5% in China, 1.4% in Indonesia and 1.3% in Australia.  Equity declines today in Europe so far amount to 6.8% in Greece, 3.2% in France, 3.1% in Switzerland, […] More

Checklist of Economic Fundamentals Supports a Buoyant Dollar

September 17, 2014

Currency analysts approach the task of forecasting by reviewing a checklist of economic vital signs, the so-called fundamentals.  Likewise, when officials complain that their currency is either too strong or too weak, the argument is based on a grading system that considers around seven comparative measures of fundamental economic performance.  The ratings involve inflation, short-term […] More

Investors Heartened by Reported Progress on Fiscal Cliff Talks

December 18, 2012

Share prices rose overnight by 1.0% in Japan, 0.6% in India, 0.5% in Australia, 0.3% in New Zealand and Thailand, 0.2% in Taiwan and the Philippines, and 0.1% in China.  In Europe, equities have advanced 0.7% in Madrid, 0.4% in Frankfurt and Milan, and 0.3% in London, but the Paris Cac is off 0.1%. Not […] More

Continuing Choppy Forex Conditions Fed by Uncertainty

October 19, 2012

Market noise continues to drown out an sense of cumulating trend.  Key dollar pairs against the euro, yen, Swiss franc, sterling, Australian and New Zealand currencies are each trading presently less than 2.0% from their year-to-date average levels.  The same is even true of the euro-yen relationship in spite of its 18.5%-wide 111.435 to 94.075 […] More

Fragile yet Better Tone in Market

November 22, 2011

Stocks in Europe have firmed 0.8% in Germany, 0.6% in France, and 0.4% in Great Britain. The dollar, which does best under conditions of high risk aversion, settled back 0.5% against the Swiss franc, 0.4% versus the euro and Aussie dollar, 0.3% relative to the kiwi, 0.2% against the loonie and sterling, and 0.1% versus […] More

Europe Burning… and Draghi No Help

November 18, 2011

Although the dollar has given back some gains, stock markets in Asia and Europe tell the story of a euro debt crisis that’s still raging and threatening to drag the rest of the world down with it. The dollar fell overnight by 0.7% against the Swissie, 0.5% versus sterling, 0.4% relative to the euro, 0.3% […] More

Spotlight on Central Banks and Obama

September 8, 2011

The dollar is 0.6% higher against the Swiss franc, which is trading at 1.2141 per euro.  Swiss National Bank officials intend to unilaterally prevent the franc from strengthening past 1.2000/EUR.  The dollar has risen 0.3% against the euro and 0.1% versus the Australian dollar but is 0.6% weaker against the kiwi and down 0.2% relative […] More

Panic-Stricken Markets Greet Labor Day 2011

September 5, 2011

U.S. markets are closed for Labor Day, but elsewhere the mood is grim. Ten-year sovereign debt yields tumbled 15 basis points in Britain, 14 bps in Germany and five bps in Japan. Gold catapulted above $1900, gaining 1.3% to $1902.10 per ounce.  Oil slumped 2.7% to $84.08 per ounce. Share prices have plunged 5.6% in […] More

Fresh Blast of Risk Aversion

September 2, 2011

At 13:50 GMT, U.S. share prices were down 1.6-1.7%.  Earlier trading overnight saw equities fall by 1.2% in Japan, 1.8% in Hong Kong, 1.5% in Australia, 1.1% in China and 0.9% in New Zealand.  Europe has seen the most damage, with the German Dax and Paris Cac suffering losses so far of 3.5% 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