Investing

At the end of each quarter, the IMF reports on currency reserve holdings by central banks for the preceding quarter. What investors are most interested in is the currency allocation of those reserves.  Not all central banks report the allocation...

It is precisely because the euro's decline is over-determined that the slide has accelerated.  It is not just that the ECB is buying sovereign bonds.  It is not just that the strength of the US labor market has persuaded more participants...

The controversial issue of “currency manipulation” has resurfaced. However, Washington and Beijing have very different perceptions about the identity of the “currency manipulator.” The controversial issue of “currency manipulation” has resurfaced. However, Washington and Beijing have very different perceptions about...

America’s two political parties rarely agree, but one thing that unites them is their anger about ‘currency manipulation’, especially by China. Perhaps spurred by the recent appreciation of the dollar and the first signs that it is eroding net exports,...

Already driving a housing bubble in all major Asian cities from Seoul to Jakarta, significant hot money inflows are what Hong Kong, China and Singapore seek to avoid. However, Greece’s exit from the Eurozone coupled with subsequent quantitative easing by...

The Bank of England believes that cryptocurrencies like Bitcoin could be big news and even UK chancellor George Osborne is tweeting about it. But it is important to note the detail in the central bank’s comments. It is talking about...

Numerous companies have reported that developments in the currency markets, especially the dollar's appreciation, has been an important headwind on their earnings.  The logic is compelling.  US S&P 500 companies earn almost 50% of their revenue from foreign markets.  Given...

As the next five-year review of the IMF’s international reserve asset approaches, reviewers should strongly consider the case for including the Chinese yuan in the basket.The Special Drawing Rights (SDR) is an international reserve asset used to supplement IMF member...

All that is solid is melting into the air, or that is how it feels since several central banks in Europe have adopted negative policy rates.  Sweden's Riksbank became the latest with today's move (-10 bp).  The President of the...

If you need a reminder of how complex investing in the stock market can be, look no further than the row currently raging between Lloyds Bank and up to 100,000 investors who helped to bail it out in 2009 by...

In a previous article I posted a chart from the International Energy Agency’s recent Oil Market Report that shows global demand for refined products catching up to supply by the 3rd quarter of this year. My opinion is that all...

The price of oil has steadied in recent days after making new lows on Tuesday.  The March WTI futures contract approached its 20-day moving average earlier today (~$52.30) for the first time since late November.  This was a new selling...

The two main knocks against the US from global investors have been largely addressed.  The US budget deficit has been reduced from 10% of GDP to less than 3%.  The current account deficit has been halved.  Nevertheless, many observers, including...

As we ring in the New Year, let us take stock of where we are at with the oil markets. Last year proved to be a momentous one for the oil markets, having seen prices cut in half in just...

The dramatic slide in the value of the rouble has claimed its first banking casualty. The Russian Central Bank, to the tune of US$530m, is bailing out Trust Bank.  The emergency liquidity line’s intent is as life support for one...