Tag Archives: Featured

Rydex Ratios Go Bonkers, Bears Are Dying Off For many years we have heard that the poor polar bears were in danger of dying out due to global warming. A fake photograph of one of the magnificent creatures drifting aimlessly in the ocean on a break-away ice floe was reproduced thousands of times all over the internet. In the meantime it has turned out that polar bears are doing so well, they are considered a quite...

Entre la fin de l’année 2016 et la fin du 3ème trimestre 2017 (chiffres disponibles), les dirigeants de la BNS ont accru le volume des devises détenues par l’établissement de 65 milliards de francs environ. En 9 mois seulement…. - Click to enlarge Selon eux, ces investissements se justifient par le franc suisse qui serait trop fort face à l’euro. Et pour l’affaiblir, il faut acheter de l’euro, mécanisme qui...

The Producer Price Index (PPI) or officially named “Producer and Import Price Index” describes the changes in prices for producers and importers. For us it is interesting because it is used in the formula for the Real Effective Exchange Rate. When producers and importers profit on lower price changes when compared to other countries, then the Swiss Franc reduces its overvaluation. The Swiss PPI values of -6% in 2015...

Swiss Franc The Euro has risen by 0.23% to 1.1759 CHF. EUR/CHF and USD/CHF, January 19(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is broadly lower as the momentum feeds on itself. Asia is leading the way. The Japanese yen, Taiwanese dollar, Malaysian Ringgit, and South Korean won are all around 0.45% higher. Asian shares also managed to shrug off the...

In a report published today entitled: rents losing altitude, UBS says asking rents for apartments will probably drop by up to 10% over the next three years. © Rosshelen | Dreamstime.com - Click to enlarge Competition in the rental market is getting even fiercer. By mid-2017, 2.4% of all rental apartments were vacant. This level was last exceeded in 1998, when 2.8% of rental apartments stood empty, says the bank. Higher...

When Federal Reserve officials first started last year to mention wireless network data plans as a possible explanation for a fifth year of “transitory” factors holding back consumer price inflation, it seemed a bit transparent. One of the reasons for immediately doubting their sincerity was the history of that particular piece of the CPI (or PCE Deflator). To begin with, the unlimited data plan wars that kicked off...

Industrial Production in the US was up 3.6% year-over-year in December 2017. That’s the best for American industry since November 2014 when annual IP growth was 3.7%. That’s ultimately the problem, though, given all that has happened this year. In other words, despite a clear boost the past few months from storm effects, as well as huge contributions from the mining (crude oil) sector, American production at its best...

According to the Chinese State Administration of Foreign Exchange (SAFE), China’s FX reserves amounted to USD3.14 trillion at end – December 2017, up USD20.7 billion from the previous month. This marks the 11th consecutive monthly increase in Chinese FX reserves since February 2017. In full – year 2017, Chinese FX reserves increased by USD129.4 billion, in contrast with a drop of USD512.7 billion in 2015 and USD320...

Swiss Franc The Euro has fallen by 0.20% to 1.174 CHF. EUR/CHF and USD/CHF, January 18(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar rallied in the North American afternoon yesterday and the timing coincided with the release of the Fed’s Beige Book that saw several districts report wage and price pressures. The US 10-year yield moved toward toward 2.60%,...

The US Treasury market was consolidating yesterday’s 7.5 basis point jump in 10-year yields when Bloomberg’s headline hit. The claim was that Chinese officials are “wary of Treasuries”. Yields rose quickly to test 2.60% and the dollar moved lower. It is difficult to determine the significance of the claim as the Bloomberg story does not quote anyone. The “people familiar with the matter” who are cited are not...