Tag Archive: Foreign exchange market

Capital Flows Outstrip Trade Flows and that is Where to Look for Drivers of FX

2022-11-12

Policymakers have often said that exchange rates should reflect fundamentals. What does that really mean? Can they do anything but that? It begs the question of which fundamental factors they should reflect.

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The Latte Index: Using The Impartial Bean To Value Currencies

2017-12-09

by Tyler Durden

2017-12-09

Like any other market, there are many opinions on what a currency ought to be worth relative to others. With certain currencies, that spectrum of opinions is fairly narrow. As an example, for the world’s most traded currency – the U.S. dollar – the majority of opinions currently fall in a range from the dollar being 2% to 11% overvalued, according to organizations such as the Council of Foreign Relations, the Bank of International Settlements, the...

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Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe Show Why Physical Gold Is Ultimate Protection

2017-11-18

by GoldCore

2017-11-18

Zimbabwe Implied Annual Inflation, Aug 2015 - Oct 2017

Deepening Crisis In Hyper-inflationary Venezuela and Zimbabwe. Real inflation in Zimbabwe is 313 percent annually and 112 percent on a monthly basis. Venezuela's new 100,000-bolivar note is worth less oday thehan USD 2.50. Maduro announces plans to eliminate all physical cash. Gold rises in response to ongoing crises.

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Dollar Surge Continues Ahead Of Jobs Report; Europe Dips As Catalan Fears Return

2017-10-07

by Tyler Durden

2017-10-07

World stocks eased back from record highs and fell for the first time in eight days, as jitters about Catalonia’s independence push returned while bets on higher U.S. interest rates sent the dollar to its highest since mid August; S&P 500 futures were modestly in the red - as they have been every day this week before levitating to record highs - ahead of hurricane-distorted nonfarm payrolls data (full preview here). U.S. jobs report will also be...

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Risk Off: Global Stocks Slide As “Fire And Fury” Results In “Selling And Fear”

2017-08-10

by Tyler Durden

2017-08-10

US futures are set for a sharply lower open (at least in recent market terms) following a steep decline in European stocks and a selloff in Asian shares, following yesterday's sharp escalation in the war of words between the U.S. and North Korea. In a broad risk-off move U.S. Treasuries rose, the VIX surged above 12 overnight, while German bund futures climbed to the highest level in six weeks. The Swiss franc gained 1.2 percent to 1.1320 per euro...

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Fighting inflation with FX, a real traders market

2017-07-20

by Elite Services

2017-07-20

Gain Change, Currencies Popularity, Reward: Risk Ratios, Average Holding Time

The much anticipated document (press release and link to full document) released by U.S. Trade Representative Robert Lighthizer said the Trump administration aimed to reduce the U.S. trade deficit by improving access for U.S. goods exported to Canada and Mexico and contained the list of negotiating objectives for talks that are expected to begin in one month.

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London Property Bubble Bursting? UK In Unchartered Territory On Brexit and Election Mess

2017-06-30

by GoldCore

2017-06-30

Is the London property market heading for tough times? The most recent housing figures and a new Bank of England report suggest it may well be. Recent figures show that 77% of London houses sold in May went at below asking price, up from 72% in April.

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New Gold Pool at the BIS Switzerland: A Who’s Who of Central Bankers

2017-06-13

by Ronan Manly

2017-06-13

Bank for International Settlements (BIS) Headquarters

A central bank Gold Pool which many people will be familiar with operated in the gold market between November 1961 and March 1968. That Gold Pool was known as the London Gold Pool.

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SNB Spent $68 Billion On Currency Manipulation In 2016

2017-03-24

by Tyler Durden

2017-03-24

While Donald Trump has repeatedly expressed his displeasure with China for manipulating its currency, he appears to have recently figured out that over the past 2 years Beijing has been spending hundreds of billions in dollar to strengthen, not weaken, the Yuan and to halt the ~$1 trillion in capital flight from China.

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What Will Trump Do About The Central-Bank Cartel?

2017-02-14

by Thorsten Polleit

2017-02-14

Euro Banks find it increasingly hard to obtain US dollar credit

The US is by far the biggest economy in the world. Its financial markets — be it equity, bonds or derivatives markets — are the largest and most liquid. The Greenback is the most important transaction currency. Many currencies in the world — be it the euro, the Chinese renminbi, the British pound or the Swiss franc — have actually been built upon the US dollar.

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FX Traders Have To (Re)Learn A New Skill

2017-02-11

by Tyler Durden

2017-02-11

China Trade Balance with United States, April 2016-January 2017

Dear FX traders: forget the dot plot, and prepare to learn a new - or to some forgotten - skill: how to read trade flows. As Bloomberg's Vincent Cignarella and Andrea Wong point out, currency traders accustomed to analyzing the Fed’s dot plot and monthly U.S. jobs figures to predict the direction of the world's reserve currency are having to learn, or in some cases re-learn, a largely forgotten ability: how to scrutinize trade data. With...

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The US Dollar Is Now Overvalued Against Almost Every Currency In The World

2017-01-24

by Simon Black

2017-01-24

In September 1986, The Economist weekly newspaper published its first-ever “Big Mac Index”. It was a light-hearted way for the paper to gauge whether foreign currencies are over- or under-valued by comparing the prices of Big Macs around the world. In theory, the price of a Big Mac in Rio de Janeiro should be the same as a Big Mac in Cairo or Toronto.

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Canadian Bank Starts Charging Negative 0.75percent Rate On Most Foreign Cash Balances

2016-11-22

by Tyler Durden

2016-11-22

Despite speculation over the past year that Canada may join Japan and Europe in the NIRP club and launch negative interest rates, so far the BOC has stood its ground. However, starting on December 22, for the broker dealer clients of one of Canada's most reputable financial institutions, BMO Nesbitt Burns, it will be as if the Canadian bank has cut its deposit rate on most currencies, to match the deposit rate of Switzerland.

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Dollar Illiquidity Getting Critical: A $10 Trillion Short Which The Fed Does Not Understand

2016-11-17

by Paul Mylchrest

2016-11-17

In the latest report from ADM ISI’s strategy team, “Dollar Liquidity Threat is Getting Critical and Fed is M.I.A.”, Paul Mylchreest argues that mainstream economic luminaries (like Carmen Reinhart) are finally acknowledging the evolving crisis due to the dollar shortage outside the US, a topic which even the head researcher at the BIS shone a spotlight on yesterday suggesting that the strength of the dollar, not the VIX is the new "fear...

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Major Currency Pairs & The Election (Video)

2016-11-08

by EconMatters

2016-11-08

We focus on the Election effects regarding the major currency pairs and the US Dollar in this video. Check out the Swiss Franc and the Mexican Peso Price Action after the election. This election has probably been great for CNN`s ratings, that would be a short after the election cycle is over.

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