SNB & CHF

The outlook for the dollar in the week ahead is not about economic data or the FOMC and ECB minutes.  It is about the stability of the global capital markets. Many are looking for an event or official action that will stop the rout that is of historic proportions to start the year.   We too have been thinking about what it would take to stop the rot.    However, none of the frequently mentioned events, like an agreement to cut oil output, or for a coordinated policy response by the major...

The outlook for the dollar in the week ahead is not about economic data or the FOMC and ECB minutes.  It is about the stability of the global capital markets.  Many are looking for an event or official action that will stop the rout that is of historic proportions to start the year.   We too have been thinking about what it would take to stop the rot.    However, none of the frequently mentioned events, like an agreement to cut oil output, or for a coordinated policy response by the major...

Submitted by SaxoBank's Dembik Christopher via TradingFloor.com, Currency stability is a prerequisite for China's economic transition Defending the yuan is prohibitively expensive – China cannot beat the market Progressive devaluation managed by PBoC is the most probable scenario for 2016 Remember that the country is on the capitalism learning curve Exchange rates will inevitably be a key discussion point at Shanghai G20 China has moved from being a net importer to a net exporter of...

Submitted by SaxoBank's Dembik Christopher via TradingFloor.com, Currency stability is a prerequisite for China's economic transition Defending the yuan is prohibitively expensive – China cannot beat the market Progressive devaluation managed by PBoC is the most probable scenario for 2016 Remember that the country is on the capitalism learning curve Exchange rates will inevitably be a key discussion point at Shanghai G20 China has moved from being a net importer to a net exporter of...

In response to the global crisis, central banks have adopted unorthodox policies.  They expanded their balance sheets and broken the zero bound of interest rates.  Many investors have been critical of the central bank action on principle, but what has changed recently is that market developments have provided fodder for the ineffectiveness in practice. Asset purchases did not appear to bolster price pressures in the US, Europe or Japan.  Negative rates in Europe also appears to have had...

In response to the global crisis, central banks have adopted unorthodox policies.  They expanded their balance sheets and broken the zero bound of interest rates.  Many investors have been critical of the central bank action on principle, but what has changed recently is that market developments have provided fodder for the ineffectiveness in practice. Asset purchases did not appear to bolster price pressures in the US, Europe or Japan.  Negative rates in Europe also appears to have had...

1) Indonesia announced it will allow full foreign ownership in many local industries in an effort to boost foreign investment 2) The Thai military government called a referendum on the new constitution on July 31 3) Poland’s ruling Law and Justice party dropped its backing for candidate Wnorowski to join the MPC 4) The IMF is starting to warn Ukraine 5) Press reports suggest some slippage in Brazil’s fiscal consolidation efforts 6) Mexico’s Finance Minister Videgaray acknowledged...

1) Indonesia announced it will allow full foreign ownership in many local industries in an effort to boost foreign investment 2) The Thai military government called a referendum on the new constitution on July 31 3) Poland’s ruling Law and Justice party dropped its backing for candidate Wnorowski to join the MPC 4) The IMF is starting to warn Ukraine 5) Press reports suggest some slippage in Brazil’s fiscal consolidation efforts 6) Mexico’s Finance Minister Videgaray acknowledged...

1) Indonesia announced it will allow full foreign ownership in many local industries in an effort to boost foreign investment 2) The Thai military government called a referendum on the new constitution on July 31 3) Poland’s ruling Law and Justice party dropped its backing for candidate Wnorowski to join the MPC 4) The IMF is starting to warn Ukraine 5) Press reports suggest some slippage in Brazil’s fiscal consolidation efforts 6) Mexico’s Finance Minister Videgaray acknowledged...

After another difficult Asian session that saw the Nikkei fell 4.8% (12.3% on the week), the capital markets against have stabilized in Europe.  Equity markets are mostly higher, with the Dow Jones Stoxx 600 up nearly 2% led by energy and financials.    Oil prices are up a bit more than $1 a barrel though it still leaves Brent off almost $3 on the week and WTI off $3.6.  This follows yesterday's close, which was the lowest since 2003.  Talk that the drop in price is increasing pressure on...