Edit

Stuck in the Middle with Merkel? Upcoming German State Elections

August 26, 2014
German politics will become more interesting starting this weekend.  On Sunday, the largest state in the former East Germany, Saxony will hold its local election.  The key issue is how does the anti-euro Alternative for Germany (AfD) do.   
In May, much to the chagrin of Chancellor Merkel, the AfD garnered enough vote to secure representation in th…
Stuck in the Middle with Merkel? Upcoming German State Elections Stuck in the Middle with Merkel?  Upcoming German State Elections Reviewed by Marc Chandler on August 26, 2014 Rating: 5
Edit

Great Graphic: Currency Volatility Firming

August 26, 2014
The low volatility in the currency markets has frustrated speculative investors, and dampened activity.  However, as this Bloomberg-generated Great Graphic shows, implied volatility has begun firming.   Participation appears to be increasing, and this is also evident in the futures market.  
Three-month implied euro volatility (white line) bottomed…
Great Graphic: Currency Volatility Firming Great Graphic:  Currency Volatility Firming Reviewed by Marc Chandler on August 26, 2014 Rating: 5
Edit

Today is about Politics and US Durtable Goods Orders

August 26, 2014
The US dollar is little changed.  The consolidative tone, however, does not hide the fact that, despite the stretched technical conditions, participants are still buying the slightest dollar pullback. 
The euro sold into the early gains that carried it to $1.3215 in early European activity.   Sterling stalled in front of $1.66 yesterday and again …
Today is about Politics and US Durtable Goods Orders Today is about Politics and US Durtable Goods Orders Reviewed by Marc Chandler on August 26, 2014 Rating: 5
Edit

Great Graphic: Intl Comparison Labor Costs per Employee

August 25, 2014
It almost seems surreal.  The major central banks seem to agree that wages need to rise.  Usually, to the extent central banks address the issue, they traditionally have cautioned against large pay increases.  And is so doing, reveal their underlying pro-business agenda.  Why should it matter to a central bank how the productivity gains are divide…
Great Graphic: Intl Comparison Labor Costs per Employee Great Graphic:  Intl Comparison Labor Costs per Employee Reviewed by Marc Chandler on August 25, 2014 Rating: 5
Edit

Emerging Markets for the Week Ahead

August 25, 2014
(from my colleague Ilan Solot)

Emerging markets are starting the week on an uneven footing, caught between the rebound in risk appetite and the broad dollar appreciation trend. The latter refers to the risk that EM currencies will be washed out together with major currencies as the dollar gains. We think this is a genuine concern, but more relevant…
Emerging Markets for the Week Ahead Emerging Markets for the Week Ahead Reviewed by Marc Chandler on August 25, 2014 Rating: 5
Edit

Dollar Pares Initial Gains, French Government Implodes

August 25, 2014
The US dollar is narrowly mixed.  It opened Asia broadly higher in sloppy start of the session, which may have been linked to a technical glitch that led to a four-hour delay of the electronic futures trading.  Still, the driving force was the divergent trajectory of monetary policy underscored with the Jackson Hole speeches.
The dollar had reached…
Dollar Pares Initial Gains, French Government Implodes Dollar Pares Initial Gains, French Government Implodes Reviewed by Marc Chandler on August 25, 2014 Rating: 5
Edit

The Week Ahead

August 24, 2014
In some practical sense, even if not calendar-true, the week ahead is the last week of summer in the northern hemisphere.   September could very well set the tone for the remainder of the year, but before we get there, the week ahead demands some attention.
Three drivers are evident:  the initial conditions of the markets, the data and geopolitics.
The Week Ahead The Week Ahead Reviewed by Marc Chandler on August 24, 2014 Rating: 5
Edit

Dollar Stretched, but will it Correct?

August 23, 2014
The US dollar had a good week, gaining against all the major currencies. Strong economic data underpinned it, and what we suspect is a mistaken belief that the debate about an earlier rate hike by the Fed has truly intensified.
Ironically, the strong data failed to instill any traction in US bond yields. The 10-year yield was flat on the week, unab…
Dollar Stretched, but will it Correct? Dollar Stretched, but will it Correct?  Reviewed by Marc Chandler on August 23, 2014 Rating: 5
Edit

Cool Video: Can Self-Organizing Robots Unionize?

August 23, 2014
This Cool Video is from a Wall Street Journal report that discusses a Harvard scientist that constructed hundreds of small robots (each has a diameter of a penny) that can work together without a central  intelligence.  Does this make them more capable even if less intelligent than people? 
The robots can assemble themselves into various shapes an…
Cool Video: Can Self-Organizing Robots Unionize? Cool Video:  Can Self-Organizing Robots Unionize?  Reviewed by Marc Chandler on August 23, 2014 Rating: 5
Powered by Blogger.