Results for PPP
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Sterling and Gilts Pressed Lower by Firmer CPI

November 20, 2024
Overview: US dollar and rates are firmer today. All the G10 currencies are lower, led by the Japanese yen. The UK reported firmer than expected CPI and this may have deflected some of the selling pressure away from sterling, which is off less than 0.2% to put it atop the pack ahead of the US open. Nearly all the emerging market currencies are lowe…
Sterling and Gilts Pressed Lower by Firmer CPI Sterling and Gilts Pressed Lower by Firmer CPI Reviewed by Marc Chandler on November 20, 2024 Rating: 5
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Macro: Tell Us Something We Don't Already Know

September 24, 2022
As September winds down, three sets of economic reports will draw the most attention. We will review them and then offer a snapshot of the emerging market central bank meetings. As we have seen in the UK and Norway, several emerging market countries raised rates early (beginning in the middle of last year) but still experienced an acceleration of …
Macro: Tell Us Something We Don't Already Know Macro: Tell Us Something We Don't Already Know Reviewed by Marc Chandler on September 24, 2022 Rating: 5
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Macro and Prices: Sentiment Swings Between Inflation and Recession

May 14, 2022
(On vacation for the rest of the month.  Going to Portugal.  Commentary will resume on June 1.   Good luck to us all.)
The market is a fickle mistress. The major central banks were judged to be behind the inflation curve. Much teeth-gashing, finger-pointing. Federal Reserve Chair Powell was blamed for denying that a 75 bp hike was under considerati…
Macro and Prices: Sentiment Swings Between Inflation and Recession Macro and Prices: Sentiment Swings Between Inflation and Recession Reviewed by Marc Chandler on May 14, 2022 Rating: 5
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Great Graphic: Euro's (OECD) PPP

June 12, 2019
US President Trump recently bemoaned the fact that the euro is undervalued.  While his critics complain that he is prone to exaggeration, in this case, the euro is undervalued.  This Great Graphicisa long-term chart of the euro has moved around its purchasing power parity as measured by the OECD.  Currently, the euro is about 22% undervalued, and …
Great Graphic: Euro's (OECD) PPP Great Graphic: Euro's (OECD) PPP Reviewed by Marc Chandler on June 12, 2019 Rating: 5
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Purchasing Power Parity Shifts in 2018

December 19, 2018
Nearly every investment strategy seems to fall in one of three buckets.   There is trend-following--go with the underlying direction of prices--and its opposite, mean reversion, look for the trend to be reversed.  Lastly, there are arbitrage strategies.  We would put carry trades, where a low yielding currency is borrowed to finance the purchase …
Purchasing Power Parity Shifts in 2018 Purchasing Power Parity Shifts in 2018 Reviewed by Marc Chandler on December 19, 2018 Rating: 5
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The Better Way: Backing into Smoot-Hawley and Repeating the Flaws of PPP

January 09, 2017
While hearings on US President-elect Trump's nominees will begin this week, the Republicans are preparing dramatic changes in taxes.  In this note, we will look closely at one element of the proposed tax changes that involve trade. 
It is the border tax adjustment.  In essence, the proposal calls for export revenue (not just profits) to be exem…
The Better Way: Backing into Smoot-Hawley and Repeating the Flaws of PPP The Better Way: Backing into Smoot-Hawley and Repeating the Flaws of PPP Reviewed by Marc Chandler on January 09, 2017 Rating: 5
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