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Who Speaks for the Fed, and Fiscal Brinkmanship

March 29, 2011
Many market observers seem to be exaggerating the role of some Federal Reserve officials. Bullard, who has mentioned exiting from QE2 before completing the $600 bln of purchases. Plosser, a voting member has also sounded a bit hawkish, though not as much as Bullard. However, while these views have been highlighted, the comments by Evans, a voting …
Who Speaks for the Fed, and Fiscal Brinkmanship Who Speaks for the Fed,  and Fiscal Brinkmanship Reviewed by Marc Chandler on March 29, 2011 Rating: 5
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Portugal Update

March 29, 2011
Portuguese bonds are holding their own against the Germany today. The government seems to need around 1 bln euros to meet next months coupon and redemptions. There is some talk that it may seek a bridge loan. That will buy it time until the nearly 7 bln euros are needed in mid-June. A new government could be in place by then as well (55 days after…
Portugal Update Portugal Update Reviewed by Marc Chandler on March 29, 2011 Rating: 5
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Becalmed FX

March 29, 2011
US dollar is mixed, but the downside momentum seen recently seems to be taking a hiatus.  It is difficult for me to believe that it was comments by Bullard and Plosser turned the market as the former does not vote on the FOMC and Plosser's comments did not represent any new ground.  Both are known to be on the hawkish side of the Fed's spe…
Becalmed FX Becalmed FX Reviewed by Marc Chandler on March 29, 2011 Rating: 5
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Trichet: Seeing What Your Want

March 28, 2011
ECB President Trichet remained hawkish in comments today, noting that inflation is persistently above the target of just below 2%. Yet ECB monetary policy is not based on one pillar but two. The other pillar is money supply. Money supply measured by M3 rose 2% year-over-year in Feb. The ECB's reference rate is 4.5%. This is to say that money s…
Trichet: Seeing What Your Want Trichet:  Seeing What Your Want Reviewed by Marc Chandler on March 28, 2011 Rating: 5
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Fiddling while the Periphery Burns

March 28, 2011
After more than a year since the European debt crisis began, officials have still failed to resolve it. They raised expectations for a “grand bargain” only to crash them on the shoals of political reality. The March 24-25 Summit was to finally provide closure and yet the situation remains fundamentally unresolved.
Fiddling while the Periphery Burns Fiddling while the Periphery Burns Reviewed by Marc Chandler on March 28, 2011 Rating: 5
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Dollar Firm, But Cable Weakness Pronounced

March 28, 2011
The US dollar is firmer in the aftermath of this weekend's event, which inlcuded a loss by the ruling parties in France and Germany, Japanese continuing to struggle to contain radioactive leaks and increased unrest in Yemen and Syria.  Sterling, which reached a multi-month high last Tuesday near $1.64 is off nearly a nickle as intreest rate di…
Dollar Firm, But Cable Weakness Pronounced Dollar Firm, But Cable Weakness Pronounced Reviewed by Marc Chandler on March 28, 2011 Rating: 5
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Quick Note on Weekend Developments

March 27, 2011
The US dollar is opening broadly higher in early and thin Asian activity.  The thinness of market conditions is surely playing a role, but the weekend news would encourage risk aversion.  First, the radioactive leak in Japan has yet to stabilize.  Second, the MENA tensions rose in especially in Syria.  Third both Merkel and Sarkozy's parties t…
Quick Note on Weekend Developments Quick Note on Weekend Developments Reviewed by Marc Chandler on March 27, 2011 Rating: 5
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Thank You Sir, Can I Have Another ?

March 25, 2011
Portugal has been downgraded by both Fitch (A-) and S&P (BBB) and the EU Summit looks like modest techical adjustments that have largely been unveiled.  The euro (yawn) is little changed.    On the week it is a mere 0.1% lower, less than a rounding error for most participants.  Its resilience remains remarkable.  It is coming at the same time …
Thank You Sir, Can I Have Another ? Thank You Sir, Can I Have Another ? Reviewed by Marc Chandler on March 25, 2011 Rating: 5
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Bloomberg: Chandler, Lyons Interview on Spain, Portugal Debt Bloomberg: Chandler, Lyons Interview on Spain, Portugal Debt Reviewed by magonomics on March 24, 2011 Rating: 5
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