Economic Conditions

The US dollar is firm as the losses suffered in the wake of the FOMC meeting are retraced.  Over the last few days, no less than five Federal Reserve officials have come out endorsing a resumption of the normalization cycle. ...

A series of attacks at Brussels airport and metro casts a pall over the market.  The attacks come as Europe prepares what for many will be a long holiday weekend.  Gold, the dollar and yen seem to have been the...

Denmark reclaimed its place as the happiest country in the world, according to the latest annual World Happiness Report. Switzerland, Iceland, Norway and Finland followed in quick succession at the top, while Benin, Afghanistan, Togo, Syria and Burundi languished at...

The US dollar is beginning the week mostly firmer against the major and emerging market currencies.  The Japanese yen, where local markets were closed for the spring equinox is up slightly, and the Australian dollar turned higher in the European...

The year started poorly, to say the least. Equity markets plunged from the get-go.  The Nikkei, DAX and S&P 500 gapped lower on the first trading day of the year.  Emerging markets and commodities were smashed.  Many economists blamed the...

The US dollar had a difficult week.  The price action after the ECB meeting had undermined the technical tone, and the dollar took another leg down after the FOMC moved closer to the market expectation by reducing the number of...

The US dollar is firmer against most major and emerging market currencies to pare this week's decline.  There are three notable exceptions, and they are all in Asia.  For all practical purposes, the dollar is flat against the Japanese yen...

The Federal Reserve's cautiousness has sent the dollar reeling.  The Fed's backtracking to two hikes this year from four is still met with skepticism by the market.  It previously had a June hike nearly discounted but it has not pushed...

The Federal Reserve halved the number of rate hikes it anticipates this year from four to two.  The market has been moving toward this as well after having thought there would be no hikes this year.  The dollar sold off. ...

The US dollar is steady to firmer against most of the major and emerging market currencies.  Equity markets are heavier, and oil continues to surrender some of its recent gains.  Profit taking is weighing on Eurozone bonds and JGBs while...

The US dollar is firmer but largely confined to the ranges seen before the weekend against most of the major currencies.  The yen is also firmer as dollar sellers reemerged near JPY114.00.  The dollar is gaining against most emerging market...

Fixed exchange rates limit the degrees of freedom for policymakers.  The breakdown of Bretton Woods in 1971 removed this constraint on official action, and the results were larger budget deficits and higher inflation.  The zero bound on interest rates also...

Fasten your seat belts.  The ride is going to get bumpy.   Economists may differ on what the ECB will do.   Investors may differ on the market response.  This uncertainty ensures a strong market reaction. The euro is off about 0.25%...

The euro has peeled off a cent from yesterday's high near $1.1060 as some short-term players move to the sidelines ahead of the ECB meeting.  Recall that after peaking near $1.1375 on February 11 when the New Year's market angst...

A few weeks ago, investors were bemoaning a new bear market for equities, and there was much ink spilled drawing parallels between now in 2008-2009.  Falling commodities, weakening growth, and prospects of Fed tightening saw the MSCI Emerging Market equity...