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Earlier this week I wrote that gas prices were at a near 3 year low, appearing to validate the suggestion I meade two years ago, that the Oil choke collar would begin to disengage this year. Obviously, paying lower prices for energy puts more money in consumers' pockets for other spending, and/or for increased saving. Read more
A risk-on theme prevailed, which saw the yen underperform and the Australian dollar and other growth correlating, high-beta currency types outperform. EUR-USD was net steady during the European AM session, holding moderately firmer levels from yesterday's New York closing levels. Read more
A risk-on theme prevailed, which saw the yen underperform and the Australian dollar and other growth correlating, high-beta currency types outperform. Fresh dovish-talk from the Fed chairman-elect Yellen was the prime factor, who said yesterday during testimony that, "I consider it imperative that we do what we can to promote a very strong recovery." This propelled the MSCI Asia Pacific index to a near 1.5% advance. Read more
Senate confirmation hearings for Fed chair nominee Yellen were the focal point of Thursday's N.Y. session, where she largely hardened her dovish leanings. Wall Street responded with a modest rally, while Treasury yields and the dollar pulled back some. Read more
The charts below show the unemployment rate for the EU, US and UK, respectively. The EU and US’ combined GDP is nearly $28 trillion dollars, accounting for a large portion of the world’s economic output. The UK, while somewhat smaller, is still one of the world’s 10 largest economies. Read more
The dollar traded on the softer side as markets positioned off dovish Yellen comments in prepared remarks ahead of her confirmation hearing later today. She said that the economy and jobs are performing far short of potential, which buoyed sentiment amid expectations that under her leadership the Fed will stay easy for longer. Read more
The dollar traded on the softer side as markets positioned off dovish Yellen comments in prepared remarks ahead of her confirmation hearing later today. She said that the economy and jobs are performing far short of potential, which buoyed sentiment amid expectations that under her leadership the Fed will stay easy for longer. Read more
The dollar traded in a choppy fashion in N.Y. on Wednesday, though ultimately ended up lower overall, as position paring continued. EUR-USD fell on ECB comments, where the possibility of negative deposit rates remains, though the dip provided good opportunity for euro short covering. Read more
As I’ve previously noted, the Indian Central Bank is in the middle of literally the worst policy bind a central bank faces: slowing growth and high unemployment. The cure for slow growth is lower interest rates, the implementation of which leads to higher inflation. Read more
Activity in Europe was influenced by a bout of repositioning and consolidation for most currencies. GBP was the outlier as it digested a 41.7k drop in the U.K. claimant count and the BoE Inflation Report. Ahead of the releases, EUR-USD drifted back to 1.3410 as the short covering rally ran out of steam near 1.3450 and USD-JPY marked time near 99.50 after it failed to break 100.00 on Tuesday. Read more
