Sunday , July 21 2019
Home / Tag Archives: EUR

Tag Archives: EUR

Great Graphic: Euro’s (OECD) PPP

US President Trump recently bemoaned the fact that the euro is undervalued. While his critics complain that he is prone to exaggeration, in this case, the euro is undervalued. This Great Graphic a 30-year chart of the euro has moved around its purchasing power parity as measured by the OECD. Currently, the euro is about 22% undervalued, and it has been cheap to PPP since for the past five years. The OECD’s model...

Read More »

FX Daily, June 10: Collective Sigh of Relief Lifts Equities, Yields, and the Dollar

Swiss Franc The Euro has risen by 0.11% at 1.1186 EUR/CHF and USD/CHF, June 10(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: A global sigh of relief that the US will not tariff all its imports from Mexico. Equities are all higher, and the weekend demonstrations in Hong Kong over a bill allowing extraditions to the mainland for the first time did not deter...

Read More »

The Thumbnail Sketch of the Euro You are Looking For

Here is an overview of the broad macro considerations for the euro, with some thoughts about the price action, including volatility. It is shared not so much as an argument as a sketch the considerations that drive a view.  1. An 18-month low for the euro was set on April 26 a little above $1.11, immediately after the US reported a stronger than expected Q1 GDP report. The euro has been consolidating here in May and has...

Read More »

FX Daily, April 12: Euro Bid Above $1.13 for the First Time this Month

Swiss Franc The Euro has risen by 0.29% at 1.1317 EUR/CHF and USD/CHF, April 12(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The consolidative week in the capital markets is drawing to a close. Equity markets are narrowly mixed. In Asia, most indices outside of the greater China (China, Taiwan, and Hong Kong) edged higher, leaving the MSCI Asia Pacific Index...

Read More »

April Monthly Currency Outlook

Poor economic data and soft inflation saw several central banks, including the Federal Reserve and European Central Bank, take a dovish turn in March. Contrary to expectations that interest rates would rise as the G3 central banks were no longer adding to their balance sheets on a combined basis. The sharp drop in interest rates and the flattening of curves in March is one of the key factors shaping the investment...

Read More »

FX Daily, March 29: Equities Bounce While Bonds Pullback to End Q1

Swiss Franc The Euro has keep position 0.00% at 1.1194 EUR/CHF and USD/CHF, March 29(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The global growth scare may be subsiding. It had been fanned by the ECB and Fed statements and projections. Poor US jobs growth reported in early March and the poor flash EMU PMI late in the month contributed. The slowdown in China...

Read More »

FX Daily, March 28: Brexit Uncertainty Deepens as Parliament is Divided, while Turkey’s Short Squeeze Falters

Swiss Franc The Euro has risen by 0.07% at 1.1192 EUR/CHF and USD/CHF, March 28(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The lurch lower in global interest rates continue. The US 10-year yield is at new 15-month lows, five basis points through the average effective Fed funds rate. Late yesterday, it appeared that 10-year German Bund yields slipped below...

Read More »

FX Daily, March 27: Global Bond Rally Continues, Greenback Remains Firm

Swiss Franc The Euro has fallen by 0.05% at 1.1194 EUR/CHF and USD/CHF, March 27(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The US 10-year yield is trading below the Fed funds target. The two-year yield is trading below the lower end of the Fed funds target range. A warning by New Zealand that the next rate move could be a cut sent New Zealand and Australian...

Read More »

Cool Video: Bloomberg–Sterling and the Euro

I joined Shey Ann and Amanda Lang on the Bloomberg set to talk about sterling and the euro. The media makes it sound like there was a coup in the UK and Parliament has taken control of Brexit. This is an exaggeration. The House of Commons did secure tomorrow to have “indicative votes” on the different alternatives. These votes are not binding on the Prime Minister who as already indicated some alternatives that she will...

Read More »

FX Daily, March 26: Semblance of Stability Re-Emerging

Swiss Franc The Euro has risen by 0.06% at 1.1231 EUR/CHF and USD/CHF, March 26(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Overview: The sell-off in equities seemed to peak yesterday, and US indices were narrowly mixed. Traders found comfort in that performance, even though the S&P 500 finished a little below 2800, and took the markets in the Asia-Pacific region...

Read More »