SNB & CHF

Marc attributes Euro strength and dollar weakness to the unwinding of the carry trade. With continued monetary divergence Marc expects the dollar to regain it's footing into the March ECB meeting. Marc believes there will be no Plaza Accord 2.0 and the Saudi's will not de-peg from the dollar.

As we noted last night, in what was the second clear example of sheer desperation by the Bank of Japan, the central banker formerly known as Peter Pan for his on the record belief that "he should fly", and as of this morning better known as Peter Panic, desperately tried to pull of his best "Draghi", up to and even stealing the ECB's trademark catch phrase, to wit: KURODA: POSSIBLE TO CUT NEGATIVE RATE FURTHER IF NEEDED KURODA: NO LIMIT TO MONETARY EASING MEASURES KURODA: WILL EXPAND EASING...

Marc attributes Euro strength and dollar weakness to the unwinding of the carry trade. With continued monetary divergence Marc expects the dollar to regain it's footing into the March ECB meeting. Marc believes there will be no Plaza Accord 2.0 and the Saudi's will not de-peg from the dollar.

Join us for a unique Forex experience in the FXStreet Live Analysis Room. The #FXroom is being hosted by Dale Pinkert, long time and popular contributor on FXStreet. Trading in community. Know our Mastermind concept as we all edify each other 1+1=11 at http://www.fxstreet.com/webinars/live-analysis/ Live Video and chat with experts and traders. Daily show 14 GMT; 9-11 am EST. Finally, don't miss the interview with the writer and speaker Marc Chandler @marcmakingsense at 15:15 GMT, 10:15 EST.

Join us for a unique Forex experience in the FXStreet Live Analysis Room. The #FXroom is being hosted by Dale Pinkert, long time and popular contributor on FXStreet. Trading in community. Know our Mastermind concept as we all edify each other 1+1=11 at http://www.fxstreet.com/webinars/live-analysis/ Live Video and chat with experts and traders. Daily show 14 GMT; 9-11 am EST. Finally, don't miss the interview with the writer and speaker Marc Chandler @marcmakingsense at 15:15 GMT, 10:15 EST.

The Bank of Japan surprised investors by introducing negative rates last week.  Leave aside the fact that the negative rates do not go into effect for more than another week, and even when in effect, will apply to a relatively small amount of deposits at the central bank.  The important point is that it is another central bank to introduce negative rates. Moreover, the yields of Japanese bonds through eight-year maturities have turned negative.    In comparison, German yields are...

The US dollar is sporting a softer profile today as the global capital markets are trying to stabilize.  Oil prices have steadied, with WTI back above $30.   Bond markets are narrowly mixed though the 10-year US Treasury is steady near 1.85%.  Asian and European equities followed US markets lower, but American equities have stabilized, and ahead of the ADP employment estimate and the ISM for non-manufacturing, S&P 500 is set to open slightly higher. The dollar continued to shed the...

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 out the storm.  Rather the yen's strength is a reflection of the turmoil. As we have explained the yen and euro have been used to finance the purchases of other assets.  As those assets are liquidated, the funding currency is bought back.  The dollar, euro and yen are the most...

  The EC draft proposals in response to the UK’s demands have been enthusiastically embraced by Prime Minister Cameron.  The wires quote Cameron as saying "I would opt in to EU membership on these good terms." The proposals presented by European Council President Tusk are weak on details that are still to be decided, though Cameron quickly seized upon them to claim: I have delivered commitments in my election manifesto."  It has yet to be seen if it is sufficient to convince several of...

The decline in oil and equities are lifting European bonds and Treasuries.  The US dollar is firmer against most major and emerging market currencies.   We never put much stock in last week's seemingly euphoric speculation of a deal between Russia and OPEC to support oil prices.  As the speculation is unwound, anticipation of another large US inventory build, and poor corporate earnings from energy sector are also taking a toll.  BP posted a 91% decline in Q4 earnings. Yesterday, S&P...