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Great Graphic: Yen Since Onset of the Financial Crisis

January 25, 2013
This Great Graphic, created on Bloomberg, shows the US dollar against the Japanese yen since the beginning of the financial crisis.  The dollar fell almost 40% from the peak in 2007 until the low in 2011.  
It has now pulled back, with the help of verbal guidance from Japanese officials, new evidence that deflation has not loosened it's grip …
Great Graphic: Yen Since Onset of the Financial Crisis Great Graphic:  Yen Since Onset of the Financial Crisis Reviewed by Marc Chandler on January 25, 2013 Rating: 5
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Three Impulses Dominate FX at the Week's End

January 25, 2013
As the week draws to a close, there are three independent drivers in the foreign exchange market.  The first two are the weakness in the yen and sterling.  The third is the push higher in the euro.  
We had not expected the dollar to close above JPY90 in North America yesterday and it has not looked back.  Comments from some Japanese officials, s…
Three Impulses Dominate FX at the Week's End Three Impulses Dominate FX  at the Week's End Reviewed by Marc Chandler on January 25, 2013 Rating: 5
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Cool Video: Bank Lending in US and UK

January 25, 2013
This Cool Video comes from the Economist.  Although the story of bank lending is more complicated than is told here, I think you'll agree that this is a reasonably good job for a 90 second comparison between the US and the UK experience.
Cool Video: Bank Lending in US and UK Cool Video:  Bank Lending in US and UK Reviewed by Marc Chandler on January 25, 2013 Rating: 5
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Ten Things You Should Know about the LTRO

January 24, 2013
1. Banks that borrowed from the ECB under the Long Term Repo Operation (LTRO) can begin repaying, if they want. Banks must notify the ECB on a weekly basis about how much they want to repay. The ECB will publish amount to be paid back and the number of banks every Friday for the next few years, starting tomorrow.
2. Banks borrowed roughly 1 tril…
Ten Things You Should Know about the LTRO Ten Things You Should Know about the LTRO Reviewed by Marc Chandler on January 24, 2013 Rating: 5
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Yen Falls Back

January 24, 2013
The main feature in the foreign exchange market is the slide in the Japanese yen.  For the first time this week, Japanese banks were sellers of the yen, perhaps encouraged by official comments and a larger than expected trade deficit.  Others may have been emboldened by the Japanese selling and the yen continued to sell-off through the Europe…
Yen Falls Back Yen Falls Back Reviewed by Marc Chandler on January 24, 2013 Rating: 5
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Currency Wars: Causes and Consequences

January 23, 2013
The Realist understanding of international affairs is that it is a realm of competition.  The competition is multi-faceted, taking place in politics and economics.  It has a cultural dimension.  It takes place even in the writing of history.  
This competition spills over into the foreign exchange market.  It did not begin with the unorthodox pursu…
Currency Wars: Causes and Consequences Currency Wars:  Causes and Consequences Reviewed by Marc Chandler on January 23, 2013 Rating: 5
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Choppy Consolidation Featured

January 23, 2013
Global capital markets are characterized by choppy consolidative activity.  In the foreign exchange market, two major currencies stand out, the yen and sterling.  
The Japanese yen which is continuing trade higher following the outcome of the much anticipated BOJ meeting that seemingly resulted appearance of easing without really doing very much.�…
Choppy Consolidation Featured Choppy Consolidation Featured Reviewed by Marc Chandler on January 23, 2013 Rating: 5
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Great Graphic: Euro, Stocks and Volatility

January 22, 2013
The relationship between the euro, volatility and the S&P 500 is far from stable. In light of recent developments, it may be helpful to update our analysis.
1. The implied 3-month euro volatility has increased from the 5-year lows seen in the middle of last November near 6.4% to move above 9.0% at the end of last week. It has eased a bit, w…
Great Graphic: Euro, Stocks and Volatility Great Graphic:  Euro, Stocks and Volatility Reviewed by Marc Chandler on January 22, 2013 Rating: 5
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Great Graphic: Value-Added Trade

January 22, 2013
This Great Graphic, from the Economist, utilizes the new data base created by the OECD and World Bank that we brought to your attention here. Rather than simply look at the dollar value of goods and services that cross national borders, it focuses on the value-added.   
The chart here shows breaks down electronic exports (2009) into their domesti…
Great Graphic: Value-Added Trade Great Graphic:  Value-Added Trade Reviewed by Marc Chandler on January 22, 2013 Rating: 5
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