Edit
) no-repeat top center;background-size:cover'>

QEII QED

November 04, 2010
The US dollar chopped around in the immediate post-Fed markets. Although weaker the dollar did not break down in Asia (except against the New Zealand dollar on the back of a strong employment report), but it has been sold off hard in Asia.
Risk assets--equities, commodities are in demand and bonds, especially in Europe have been sold off. The Euro…
QEII QED QEII QED Reviewed by Marc Chandler on November 04, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Fed's QEII Anti-Climactic

November 03, 2010
The dollar has sold off on the news that the Federal Reserve will buy $600 bln of Treasuries over the next 8 months. It will relax its 35% self-imposed limited per security. This is in additon to the $35 bln per month it anticipated form the mortgage securites maturing. Its economic assessment and inflation assessments appear little changed.
Fed's QEII Anti-Climactic Fed's QEII Anti-Climactic Reviewed by Marc Chandler on November 03, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Euro-Dollar Update

November 03, 2010
I identified and continue to track key forces that offer insight into the euro dollar exchange rate.
To monitor the near-term trend, we have used the 5 and 20 day moving averages. They have done a fairly good job of capturing this year's big trend moves with minimal whipsaws. The 5-day average crossed below the 20-day last Thursday for the fir…
Euro-Dollar Update Euro-Dollar Update Reviewed by Marc Chandler on November 03, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Will Focus Shift to Europe?

November 03, 2010
With the FOMC looming, the market essentially yawned at the US election results, which gave the Republicans control of the House of Representatives by margin that looks to be at the high end of expectations. The GOP appear to have stopped shy of taking the Senate. An extension of the 2001 and 2003 tax cuts look increasingly likely. The China bill …
Will Focus Shift to Europe? Will Focus Shift to Europe? Reviewed by Marc Chandler on November 03, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Chinese Yuan Update

November 02, 2010
There are two devleopments in China to note:
1. The yuan appreciated in the spot market earlier today, after staging a relatively large decline yesterday. At today's best dollar level, the yuan had weakened about 0.85% against the dollar over the past two weeks. It seemed that the yuan spot losses were a function of a) more stable tone in the …
Chinese Yuan Update Chinese Yuan Update Reviewed by Marc Chandler on November 02, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

The Next 36 Hours

November 02, 2010
The US dollar is trading heavily though within the recent ranges against most of the major currencies ahead of the conclusion of the FOMC meeting which is widely expected to result in a new round of long-term asset purchases.
The thunder today has been stolen by the Reserve Bank of Australia. Last month it defied market expectations by not raising…
The Next 36 Hours The Next 36 Hours Reviewed by Marc Chandler on November 02, 2010 Rating: 5
Edit

Greek Woes

November 01, 2010
Sunday Greek deputy Prime Minister Pangalos told a local paper that in theory debt restructuring should not be completely ruled out, though the deficit would need to be dealt with first. He argued against "demonizing" debt restructuring.
This obviously has antagonized investors. The Greek 10-year yield rose 18 bp today after rising 120 b…
Greek Woes Greek Woes Reviewed by Marc Chandler on November 01, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

Yen and Japanese Corporate Earnings

November 01, 2010
The strength of the yen is negative for the Japanese economy because it reinforces the deflationary forces and hurts corporate earnings may making exports less competitive. This is fine on a certain level of abstraction, deducing from first economic principles. The problem is in the details.
Three important Japanese companies with large foreign sa…
Yen and Japanese Corporate Earnings Yen and Japanese Corporate Earnings Reviewed by Marc Chandler on November 01, 2010 Rating: 5
Edit
) no-repeat top center;background-size:cover'>

The Big Week Begins

November 01, 2010
The US dollar starts a critical week on the defensive. A new round of long-term asset purchases by the Federal Reserve coupled with a stronger than expected Chinese PMI weighed on the dollar and encouraged purchasing of so-called risk assets. Although the euro has flirted with the $1.40 level, we note it has only managed to close (the North Americ…
The Big Week Begins The Big Week Begins Reviewed by Marc Chandler on November 01, 2010 Rating: 5
Powered by Blogger.