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Euro and Swiss franc Surge, Yen Weakens

April 06, 2011
The euro has shot higher, reaching 15 month highs, while the US dollar firms to 6 month highs against the yen.  The main driving for remains interest rates and interest rate expectations.  Strong German manufacturing underscores ECB rate hike inevitablity tomorrow, while the FOMC minutes and recent speeches by Fed leadership clearly indicates Trea…
Euro and Swiss franc Surge, Yen Weakens Euro and Swiss franc Surge, Yen Weakens Reviewed by Marc Chandler on April 06, 2011 Rating: 5
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Notes from Private Briefing with BOJ

April 05, 2011
The BOJ's rep office in NY invited a number of analysts to meet the Deputy Director of the stats office and hear a presentation about the economic impact from the recent disaster.
The key take away points from the BOJ is that disaster may not be as costly, but it will take a quite a while to fully recover. Specifically the govern initial estim…
Notes from Private Briefing with BOJ Notes from Private Briefing with BOJ Reviewed by Marc Chandler on April 05, 2011 Rating: 5
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DJ FX Trader Roundtable DJ FX Trader Roundtable Reviewed by magonomics on April 05, 2011 Rating: 5
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Canada Reserve Figures and More

April 05, 2011
The Bank of Canada reports its reserve figures every week. Today's report is interesting because it covers the joint intervention.
The Bank of Canada sold roughly $124 mln in yen. This follows the UK Treasury's admission that it sold about $150 mln of yen. The BOJ figures suggest it sold JPY692.5 bln (~$8.5 bln). What is particularly notew…
Canada Reserve Figures and More Canada Reserve Figures and More Reviewed by Marc Chandler on April 05, 2011 Rating: 5
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India: Foreign Investors Returning, Data Softens

April 05, 2011
Overseas investors have stepped up their purchases of Indian equities in recent days and have reversed the earlier outflows to be net purchasers here in 2011. Between last Thursday, March 31, Friday April 1 and yesterday April 4, foreign investors bought nearly $1 bln of Indian shares according to the Securities and Exchange Board. The net INR43.5…
India: Foreign Investors Returning, Data Softens India: Foreign Investors Returning, Data Softens Reviewed by Marc Chandler on April 05, 2011 Rating: 5
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Dollar Mostly Firmer, Sterling Higher

April 05, 2011
The US dollar is firmer against most of the major and emerging market currencies, with the notable exception being sterling, which has ben boosted a much stronger than expected services PMI (57.1 vs 52.6 in Feb).

Sterling reached $1.6250  but is over-extended on the short-term basis and a break back below $1.6200 would suggest the day's high i…
Dollar Mostly Firmer, Sterling Higher Dollar Mostly Firmer, Sterling Higher Reviewed by Marc Chandler on April 05, 2011 Rating: 5
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Five-Year/Five Year Forwards: US and Europe

April 04, 2011
The five-year/five year forward has been cited by various officials in the US and Europe as a useful metric of inflation expectations. It is interesting to review where they are in light of the ECB's likely hike this week and increased talk about inflation in the US as commodity prices, especially oil prices, continue to edge higher.
The US 5-…
Five-Year/Five Year Forwards: US and Europe Five-Year/Five Year Forwards:  US and Europe Reviewed by Marc Chandler on April 04, 2011 Rating: 5
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The ECB and the Fed

April 04, 2011
If there is a single factor that was the main driver of US dollar in the first quarter, it would be the divergence between the trajectory of US and European monetary policy. The Federal Reserve is still engaged in easing monetary policy through unconventional purchase of Treasuries.
On its current path, QEII is worth something on the magnitude of …
The ECB and the Fed The ECB and the Fed Reviewed by Marc Chandler on April 04, 2011 Rating: 5
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Monday Overview

April 04, 2011
Out visiting clients in the second half of last week.  Still managed to monitor developments.  There are a number of take aways.  First, the best quarterly jobs performance since 2004 in the US failed to give the dollar a sustained lift.  This is because, with NY Fed's Dudley help, the market was reminded that US monetary policy has not yet re…
Monday Overview Monday Overview Reviewed by Marc Chandler on April 04, 2011 Rating: 5
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