Banking

The foreign exchange market is unusually calm.  The US dollar is little changed against currencies.  While the selling pressure that took sterling below $1.39 and the euro below $1.10 has subsided, neither has been able sustain upticks.  The euro rose...

When considering the impact of changing currency prices on an economy, trade-weighted measures are appropriate.  The Federal Reserve has cited the dollar's appreciation as a headwind on the economy and a depressant on prices. When considering the impact of changing...

The US dollar has begun the week with a strong advance against sterling and the euro. Sterling's drop, the most in several years, is not a function of macroeconomic policy.  It is a function of Brexit and its endorsement by...

Those looking to trade in any of the financial markets will obviously need to have a firm understanding of the basics involved in their chosen asset class.  However, what is likely less obvious is the fact that traders in one...

The conundrum that everyone is wrestling with is the euro and yen's strength given their negative interest rates and prospect for even lower interest rates.  The divergence of monetary policy, even if the Fed is on hold for the rest...

When we look at many of the financial media headlines over the last year, we have seen a good deal of attention focusing on the declining valuation in the Euro.  However, when we take a closer at specific valuations in...

In the first quarter of 2014, the People’s Bank of China (PBoC) finally succeeded in breaking persistent renminbi (RMB) appreciation expectations. Unfortunately, the subsequent RMB depreciation coincided with the weakening of China’s economic fundamentals. As a result, instead of creating...

The US dollar traded higher before the weekend with the help a fairly robust jobs report.  Although the jobs growth itself was somewhat disappointing, the details were constructive:  More people working a longer workweek and earning more.  The participation rate...

Sterling has neared the 50% retracement of the 11.5-cent decline since mid-December.  It is near $1.4660.  After easing ahead of the BOE announcement, sterling sold to $1.4530 on the initial headlines that showed the BOE was cutting its growth, inflation,...

The yen is the strongest currency today.  Many are still referring to it as a safe haven.  However, this strikes us as a misuse of the concept.  Investors are not flocking to the yen to find quiet place to ride...

There is a mixed tone in the global capital markets today.  Asian shares were mixed with declines in the Nikkei (-.07%) and Shanghai (-2.9%) being offset by modest gains elsewhere.  European bourses are also mixed and the Dow Jones Stoxx...

This Great Graphic, composed on Bloomberg shows a potential head and shoulders bottom pattern in the Australian dollar.  The left shoulder was set in the first part of the month near $0.6930.  The head was carved out in four sessions...

The first two and a half weeks of the New Year saw persistent selling of equities, commodities, and emerging markets.  In the foreign exchange market, the dollar-bloc and sterling were crushed.  The yen was the single biggest beneficiary, and speculators...

On the last day of November, at the conclusion of its five-yearly review of the composition of the Special Drawing Rights (SDR), the IMF elevated the renminbi to its SDR basket. The RMB is now one of five major ‘freely...

The US dollar remains strong against most currencies.  The exceptions are the Japanese yen, Swiss franc and euro though the franc and euro pulled back in the US afternoon before the weekend.  The greenback is still appreciating on a trade-weighted...