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The Sigificance of China's Surprises This Week

April 12, 2013
Overshadowed by Japan's ambitious monetary policy experiment, the heightened tensions from the Korean peninsula and the nearly 1/3 increase overall cost of the Cypriot adjustment (not to mention the collapse of the Bitcon Bitcoin), China was the source of a three surprises. 
First, Fitch became the first major rating agency to cut  China's…
The Sigificance of China's Surprises This Week The Sigificance of China's Surprises This Week Reviewed by Marc Chandler on April 12, 2013 Rating: 5
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Adjustment Ahead of the Weekend, Yen Bounces

April 12, 2013
Corrective forces are taking hold in the foreign exchange market. It appears to have begun with Tokyo's reluctance to push the dollar through JPY100; frustrating the yen bears and spurring some profit-taking. If the short leg is being covered, the long-leg of the trades, like euro, sterling, Australian dollars and emerging market currencies …
Adjustment Ahead of the Weekend, Yen Bounces Adjustment Ahead of the Weekend, Yen Bounces Reviewed by Marc Chandler on April 12, 2013 Rating: 5
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What has Changed in the Emerigng Markets?

April 11, 2013
(from my colleague Ilan Solot )

1) The Bank of Korea is becoming more independent 2) We expect the Brazilian Central Bank to start hiking by 25 bp in May 3) Israel intervened to weaken the shekel for the first time since July 2011 4) Chile is stepping up its FX intervention rhetoric 5) Mexico suspends USD auctions to prevent peso weakness
1) The …
What has Changed in the Emerigng Markets? What has Changed in the Emerigng Markets? Reviewed by Marc Chandler on April 11, 2013 Rating: 5
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Displaced JGB Investors

April 11, 2013
(written with my Tokyo-based colleague Masashi Murata)
What the Bank of Japan is doing is not unprecedented. Rather it is the pace of its asset purchases that is striking. It will do in two years what the Federal Reserve took five years in terms of balance sheet expansion. It will boost its monetary base by around $1.335 trillion by the end of n…
Displaced JGB Investors Displaced JGB Investors Reviewed by Marc Chandler on April 11, 2013 Rating: 5
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Dollar Heavy, Poised for More Losses

April 11, 2013
The US dollar continues to trade with a heavier bias, though largely within recent ranges against the major currencies and emerging market currencies. Among the majors, to note is that sterling and the Australian dollar are trading at new multi-week highs. The wait to see the JPY100 print is being dragged out, though the markets willingness to s…
Dollar Heavy, Poised for More Losses Dollar Heavy, Poised for More Losses Reviewed by Marc Chandler on April 11, 2013 Rating: 5
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