Tag Archives: USD

The combination of a falling dollar and rising US interest rates has sparked a concern never far from the surface about the foreign demand for US Treasuries. Moreover, as the Fed’s balance sheet shrinks, investors will have to step up their purchases. This Great Graphic was created by the Institute of International Finance (IIF). It is drawn from the US TIC data that tracks foreign holdings of US Treasuries. The most...

Swiss Franc The Euro has risen by 0.19% to 1.1783 CHF. EUR/CHF and USD/CHF, January 16(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates After extending its recent slide yesterday, which the US markets were on holiday, the dollar is firmer against all the major currencies and most of the emerging market currencies.  There does not seem to be macroeconomic developments...

The euro peaked in July 2008 near $1.6040. It was a record. The euro has trended choppily lower through the end of 2016 as this Great Graphic, created on Bloomberg, illustrates. We drew in the downtrend line on the month bar chart. The trend line comes in a little below $1.27 now and is falling at about a quarter cent a week, and comes in near $1.26 at the end of February. The $1.26 area also corresponds to a 61.8%...

Swiss Franc The Euro has risen by 0.45% to 1.1735 CHF. EUR/CHF and USD/CHF, January 12(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates There is one main story today and it is the euro’s surge. The euro began the week consolidating it recent gains a heavier bias, but the record of last month’s ECB meeting surprised the market with its seeming willingness to change the...

The G3 central banks are in flux.  The Federal Reserve is gradually raising rates and allowing the balance sheet to shrink by not fully reinvesting the maturing proceeds.  The ECB will purchase half as many bonds in the first nine months of 2018 as it did in the last nine months of 2017. While some observers are talking about a rate hike late this year, it seems highly unlikely.  The ECB has been clear that the...

Swiss Franc The Euro has risen by 0.45% to 1.1735 CHF. EUR/CHF and USD/CHF, January 11(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates As market participants were just getting their sea legs back after the start of the year, it was hit by a one-two punch of ideas that BOJ policy was turning less accommodative and that Chinese officials were wary of adding to their Treasury...

- Click to enlarge I joined Alix Steel and David Westin on the Bloomberg set earlier today. Click here for the link. In the roughly 2.5 minute clip, we talk about the US and and the monetary cycle in Europe. In the US, Q4 was another quarter of above trend growth. The Atlanta Fed says the economy is tracking 2.7%, while the NY Fed puts it at 4.0%. To my way of thinking about the situation, many observers seem to be...

Swiss Franc The Euro has risen by 0.31% to 1.1725 CHF. EUR/CHF and USD/CHF, January 10(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates Sparked by fears that the BOJ took a step toward the monetary exit by reducing the amount of long-term bonds it is buying, there is an apparent scramble to cover previously sold yen positions. The dollar finished last week near JPY113.00....

Swiss Franc The Euro has risen by 0.31% to 1.1725 CHF. EUR/CHF and USD/CHF, January 09(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar’s upside correction that began before the weekend has been extended in Asia and Europe today. The main exception is the Japanese yen. The yen’s modest gains have been registered despite the firmness in US rates and continued...

Swiss Franc The Euro has risen by 0.04% to 1.1753 CHF. EUR/CHF and USD/CHF, January 08(see more posts on EUR/CHF, USD/CHF, ) Source: markets.ft.com - Click to enlarge FX Rates The US dollar is enjoying modest but broad-based gains after trading firmly at the end of last week despite the slightly disappointing jobs report. The dollar’s upticks are understood to be corrective in nature. The Canadian dollar appears...