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Premium for Dollar-Funding is not Helping Greenback Very Much

December 15, 2017
The cross-currency basis swap continues to lurch in the dollar's direction, especially against the euro, and yet the dollar is not drawing much support from it.  The increasing cost reflects pressure for the year-end and does not appear to reflect systemic issues.  Dollar auction by the ECB and BOJ do not show any strain.  The dollar has a dow…
Premium for Dollar-Funding is not Helping Greenback Very Much Premium for Dollar-Funding is not Helping Greenback Very Much Reviewed by Marc Chandler on December 15, 2017 Rating: 5
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ECB Says Little and Does Less

December 14, 2017
To the surprise of no one, the ECB left it monetary policy and its forward guidance unchanged from its last meeting.   Then it announced that its asset purchases would be halved starting in January to 30 bln euros a month through September 2018.  
The ECB reiterated that official rates will be remain at their present level well past the end of the …
ECB Says Little and Does Less ECB Says Little and Does Less Reviewed by Marc Chandler on December 14, 2017 Rating: 5
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US Rates Bounce Back, but Dollar, Hardly US Rates Bounce Back, but Dollar, Hardly Reviewed by Marc Chandler on December 14, 2017 Rating: 5
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Yellen's Swan Song: Few Surprises

December 13, 2017
The Federal Reserve hiked the Fed funds target by 25 bp for the third time this year, as was widely expected.   Both the Chicago and Minneapolis Fed presidents dissented.  Next year, they will not vote, and this will give the Fed a slightly more hawkish bias among voting members in 2018.   Although it remains a bit of a mystery for Fed officials, …
Yellen's Swan Song: Few Surprises Yellen's Swan Song:  Few Surprises Reviewed by Marc Chandler on December 13, 2017 Rating: 5
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Prospect of Italian Election Crushes Italian Bonds Prospect of Italian Election Crushes Italian Bonds Reviewed by Marc Chandler on December 13, 2017 Rating: 5
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