Tag Archive: capital flows

Capital Flocks to the US

2018-08-19

The US policy mix gets a privileged place in our understanding of what is the dollar. Tighter monetary policy and looser fiscal policy could be the closest thing to an elixir for currencies. It is the policy mix that the US is pursuing.

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Tensions Beyond Trade

2018-08-01

by Marc Chandler

2018-08-01

Chinese officials do not seem to appreciate the extent of its isolation. The disruption from the US as Trump positions the US as a revisionist power-one that wants to alter the world order, which it was instrumental in constructing, may have obscured the fact that China's practices are a source of frustration and animosity broadly and widely.

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Great Graphic: Treasury Holdings

2018-01-17

by Marc Chandler

2018-01-17

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.

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Impressive Japanese Flows at the end of the Fiscal Year

2017-04-11

by Marc Chandler

2017-04-11

Japanese investors bought foreign bonds in the last week of March for the first time in nine weeks. Foreigners bought the most Japanese stocks since last April. The pain trade is for a break of JPY110.

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Japanese Capital Flows: Six Observations

2016-04-21

by Marc Chandler

2016-04-21

The following observations are drawn from the weekly report of Japan’s Ministry of Finance unless noted otherwise. We use the weekly data instead of monthly to identify changes of trend earlier. We use simple convention of the week by the last rather than the first day. That means that the report for the week ending April …

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(1) What Determines FX Rates?

The effects of so-called “currency wars” and other central bank actions are small compared to the long-term impact made by these five catalysts, which include credit cycles, trade balance, differences in economic growth, and more.

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Why did the Swiss franc spike? Lack of Capital Outflows

There is a straightforward answer to the question in the headline: more money has been trying to get into Switzerland than get out, which didn’t affect the exchange rate as long as the Swiss National Bank bought foreign currency. As soon as they stop...

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