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Yuan and Won: Now this is New

December 05, 2012
There has been much fanfare over the swap lines that China's central bank has established with numerous countries.  Many observers see those lines as evidence of the internationalization of the yuan and its increasing importance in the global economy.  
We were somewhat more skeptical, recognizing that the swap lines were not being used.   It…
Yuan and Won: Now this is New Yuan and Won: Now this is New Reviewed by Marc Chandler on December 05, 2012 Rating: 5
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Dollar Stabilizes, but Remains Fragile

December 05, 2012
After extending recent losses in Asia, the US dollar stabilized in the European morning.  Nevertheless, with no perceptible progress on the US fiscal talks, prospects for a exceptionally soft jobs report in 48 hours, and the anticipation that next week the Federal Reserve will expand its QE3+ operation, the greenback will remain vulnerable.  
 Th…
Dollar Stabilizes, but Remains Fragile Dollar Stabilizes, but Remains Fragile Reviewed by Marc Chandler on December 05, 2012 Rating: 5
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Great Graphic: Europe's Next Problem--Excess Capacity

December 05, 2012
One of the big surprises of the year is what did not happen.  The euro zone continues to reform, innovative and, most of all survive.  Many had expected Greece to have left, one way or another. 
The existential crisis in Europe has mostly focused on sovereigns and financial institutions.   Competitiveness has tended to focus on driving unit labor…
Great Graphic: Europe's Next Problem--Excess Capacity Great Graphic: Europe's Next Problem--Excess Capacity Reviewed by Marc Chandler on December 05, 2012 Rating: 5
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Osborne Walks Tight Rope

December 04, 2012
The Bank of England's Monetary Policy Committee meets Thursday.   There is an overwhelming consensus in the market that there will be no action taken--no rate cut or resumption of the gilt purchase program (QE) that was completed last month.

More importantly, tomorrow the Chancellor of the Exchequer Osborne will make his Autumn Statement to …
Osborne Walks Tight Rope Osborne Walks Tight Rope Reviewed by Marc Chandler on December 04, 2012 Rating: 5
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Heavy US Dollar Tone Continues

December 04, 2012
The US dollar continues to trade heavily, with the euro and sterling edging to new multi-week highs and the yen consolidating its recent losses.  The main consideration appears to be the looming fiscal cliff, weaker data and the prospects for additional QE to be announced next week by the Federal Reserve.  
At the same time, tail risks emanating …
Heavy US Dollar Tone Continues Heavy US Dollar Tone Continues Reviewed by Marc Chandler on December 04, 2012 Rating: 5
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