After a Rough Week, the Dollar Finds a Footing
The US dollar is trading firmly ahead of the weekend as part of this week's losses are recouped. The gains are sufficient to put it higher for the week against the Australian dollar. If its gains against the Aussie were...
South China Sea Relations Complicated by Pesky Geography
Despite the old adage that ‘good fences make good neighbours’, sometimes it is impossible, for a variety of reasons, to build good ‘fences’ in the sea. This is certainly the case in the South China Sea, where territorial claims are...
Maybe Wage Inflation is the Answer?
All that is solid is melting. After Copernicus, we know that earth is not the center of Creation. Darwin showed us that humans are part of the animal kingdom. Freud told us we are not even masters of our own...
Choosing between Dudley’s Comments and the FOMC Minutes
It is not a good day for the US dollar. It is being sold across the board. The seemingly dovish FOMC minutes released late yesterday appears to have gotten the ball rolling. The takeaway for many was that any officials...
Russia Flexes its Economic Leadership Muscles in East Asia
Until its 2012 APEC chairmanship and APEC Summit in Vladivostok, Russia was not a proactive participant in East Asia. Rather, it was still striving for comprehensive involvement in the network of regional institutions such as APEC, ASEAN dialogue partnership, the...
ASEAN Tries to Hold it Together
Clouded by controversy even before it began, the recently concluded 49th ASEAN Foreign Ministers’ Meeting (AMM) in Vientiane, Laos was conspicuous for two things: who was and was not present; and, perhaps more importantly, what was and was not discussed....
Fed President Dudley Upbeat on H2 U.S. Growth
The US dollar is enjoying a mid-week bounce against all the major currencies. It appears that participants in Asia and Europe are giving more credence to NY Fed Dudley's comments yesterday. Although many in the market have given up on...
RBA Governor Stevens is Stepping Away after 10 Years
On September 18 2016, Glenn Stevens will end his ten-year mandate as governor of the Reserve Bank of Australia (RBA). His experience in the top job provides a wealth of lessons for the next generation of policymakers; that’s arguably...
Are Shifting Views on Fed Policy Moving the Dollar?
The US dollar is being sold across the board today. The US Dollar Index is off 0.65% late in the European morning, which, if sustained, would make it the largest drop in two weeks. The proximate cause being cited by...
Is the China-Pakistan Economic Corridor Enough for Pakistan?
The China–Pakistan Economic Corridor (CPEC) is widely considered a game changer not only for Pakistan, but also for the Asian region. CPEC is a major stimulus for Pakistan, ensuring rapid economic growth with massive infrastructure development and flows of foreign...
The Highs of the Australian-Chinese Relationship
Australia and China, though they are two vastly different nations, already have a huge and joint political, economic and social investment in the success of their bilateral relationship. Australia and China, though they are two vastly different nations, already have...
Can Vietnam Help the Philippines Deal with the PCA Ruling?
On 12 July 2016, the Permanent Court of Arbitration rendered its decision on the Philippines v. China case over disputes in the South China Sea. Capturing worldwide attention, the ruling was made largely in Manila’s favour. Yet overshadowed by this...
So Much to Watch with Only Two Eyes
Japan's Q2 GDP: The week begins off with the first estimate of Japan's Q2 GDP. Growth is expected to slow from 0.6% in Q1 to 0.2%-0.3% in Q2. Consumption likely slowed more than investment increased. The GDP deflator, another measure of...
Economic Data may not Help the Dollar
The dollar's push lower that we anticipate until later in the month gained momentum following the disappointing US retail sales report before the weekend. The dollar's technical tone has deteriorated, while the economic data is unlikely to be sufficient to...
Africa’s Largest Economy is South Africa’s, but other Measures Matter More
South Africa has toppled Nigeria and reclaimed its status as the largest economy in Africa. This comes two years after Nigeria rebased its GDP calculation and advanced to the top spot. South Africa was also temporarily relegated to the third position...