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Will the Dragon Bite Off More than He can Chew?

September 05, 2012
ECB President Draghi has stepped up his campaign to buy Spanish and Italian bonds, even though neither country has been inclined to formally ask it to do so.  Reports indicate that yesterday (Sept 4) sent national central banks proposals ostensibly to be discussed at the Sept 6 council meeting.    It is quite in vogue now to pit Draghi against Bun…
Will the Dragon Bite Off More than He can Chew? Will the Dragon Bite Off More than He can Chew? Reviewed by Marc Chandler on September 05, 2012 Rating: 5
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Difficult to Discern Signal in Today's Price Action

September 04, 2012
There are a number of conflicting forces that are obscuring whatever signal the market is generating today. The US dollar has firmed in the European afternoon/NY morning. This would seem to be consistent with the risk off following the poor US data that included the third consecutive sub-50 reading on the manufacturing ISM, something that has n…
Difficult to Discern Signal in Today's Price Action Difficult to Discern Signal in Today's Price Action Reviewed by Marc Chandler on September 04, 2012 Rating: 5
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Nervous Calm Prevails

September 04, 2012
There is a nervous calm in the foreign exchange market and in the global capital markets more general.   The only significant price action to note is the sharp decline in Spanish and Italian 2-year yields (around 30 and 20 bp respectively) to the lowest levels since the spring, ostensibly in anticipation of ECB purchases.  This has also helped the…
Nervous Calm Prevails Nervous Calm Prevails Reviewed by Marc Chandler on September 04, 2012 Rating: 5
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Great Graphic: Chinese PMI

September 02, 2012
These three Great Graphics come from Also Spracht Analyst blog.   They provide three different and useful perspectives of the Chinese manufacturing Purchasing Manager Index reported on September 1.  The first chart to the right tracks the the sub-components over the past several years.  
Input prices which have been particularly volatile have fal…
Great Graphic: Chinese PMI Great Graphic:  Chinese PMI Reviewed by Marc Chandler on September 02, 2012 Rating: 5
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FX Positioning and Technical Outlook Ahead of Eventful Week

September 01, 2012
The week ahead kicks off what we expect to be a period of intense event risk. The combination of positioning, judging from the futures market and anecdotal reports, and the low implied volatility in currencies and equity markets warn of heightened risk in the period ahead. 

The week begins off slowly with a long holiday weekend in the US.  It is h…
FX Positioning and Technical Outlook Ahead of Eventful Week FX Positioning and Technical Outlook Ahead of Eventful Week Reviewed by Marc Chandler on September 01, 2012 Rating: 5
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