Edit

The Bull Case for the Dollar

January 27, 2006
The disappointing Q4 2005 US GDP report and the subsequent dollar decline is unlikely to have a lasting impact on the market. In fact, there are good reasons to expect the US dollar to strengthen in the days ahead.
The 1.1% pace of growth in Q4 2005 was the slowest since Q1 03 and breaks the string of 10 consecutive quarters of 3%+ growth. Neverthe…
The Bull Case for the Dollar The Bull Case for the Dollar Reviewed by magonomics on January 27, 2006 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Hot and Cold Money

January 20, 2006
There may be a general misunderstanding about two issues regarding capital mobility that emerged this week. The first involves how East Asia is coping with the deluge of foreign investment flowing into the region’s equity markets. The second is the apparent Iranian decision to move their investments out of Europe for fear that if sanctions are imp…
Hot and Cold Money Hot and Cold Money Reviewed by magonomics on January 20, 2006 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Two New Currency Products

January 17, 2006
The foreign exchange market is primarily an over-the-counter market. The $2 trillion a day market is conducted primarily over telephone and computer lines, with banks still the primarily market makers. However, anecdotal reports suggest that there has been a surge of interest in the foreign exchange market over the past couple of years. Due to the…
Two New Currency Products Two New Currency Products Reviewed by magonomics on January 17, 2006 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

The View From 10,000 Feet

January 13, 2006
The New Year has begun with a bang. Global equities have rallied. Bond markets have generally firmed. The dollar has slipped against most of the major currencies and regional Asian currencies. Emerging market currencies in general are off to a good start, led by the South African rand (+~5%) and the Brazilian real (+~3%).
The View From 10,000 Feet The View From 10,000 Feet Reviewed by magonomics on January 13, 2006 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Corporate Bond Offerings: A Source of Dollar Demand in 2006

January 03, 2006
We have generally played down the significance of the tax holiday given to US corporations for repatriating offshore earnings in explaining the US dollar’s rally in 2005. For a number of risk-management reasons, US companies tend to keep the vast majority of their overseas earnings in dollar-denominated instruments. Nevertheless, because the law i…
Corporate Bond Offerings: A Source of Dollar Demand in 2006 Corporate Bond Offerings: A Source of Dollar Demand in 2006 Reviewed by magonomics on January 03, 2006 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Dollar Hurdles in the Week Ahead

December 09, 2005
The US dollar faces several head winds in the days ahead that will likely conspire to cause it to fall in the days ahead.
The technical and fundamental tone of the dollar has deteriorated in recent sessions and further losses are likely in the week ahead. The fact that dollar was not bought on either goods news from the U.S. or poor news from Euro…
Dollar Hurdles in the Week Ahead Dollar Hurdles in the Week Ahead Reviewed by magonomics on December 09, 2005 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Yen Weakness Explained

December 02, 2005
One of the most puzzling developments in the foreign exchange market has been the persistent weakness of the Japanese yen.

Macro-economic fundamentals appear strong. Japan’s pace of growth puts it near the top of the major industrialized countries. Japan enjoys a booming stock market, with its year-to-date gain of 34% easily topping the G7. Moreove…
Yen Weakness Explained Yen Weakness Explained Reviewed by magonomics on December 02, 2005 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Dollar Resilience Still Impressive

November 18, 2005
The U.S. dollar’s resilience is impressive. The head of the European Central Bank gave the clearest signal to date that he plans on raising rates on December 1st and the market could not even keep the greenback down for an hour.
The firmness of the dollar is all the more noteworthy because it is taking place most recently as interest rate differen…
Dollar Resilience Still Impressive Dollar Resilience Still Impressive Reviewed by magonomics on November 18, 2005 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

The Reserve Dilemma

November 10, 2005
The persistent worry about the US current account deficit has subsided and has been replaced by anxiety over the vast accumulation of central bank reserves and the risk of diversification out of dollars. This concern seems exaggerated, but it is unlikely to go away any time soon.
The Reserve Dilemma The Reserve Dilemma Reviewed by magonomics on November 10, 2005 Rating: 5
Powered by Blogger.