Tag Archive: PPP

Sterling and Gilts Pressed Lower by Firmer CPI

2024-11-20

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2024-11-20

US dollar and rates are firmer today. All the G10 currencies are lower, led by the Japanese yen. The UK reported firmer than expected CPI and this may have deflected some of the selling pressure away from sterling, which is off less than 0.2% to put it atop the pack ahead of the US open.

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Macro: Tell Us Something We Don’t Already Know

2022-09-24

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2022-09-24

As September winds down, three sets of economic reports will draw the most attention. We will review them and then offer a snapshot of the emerging market central bank meetings.

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Macro and Prices: Sentiment Swings Between Inflation and Recession

2022-05-14

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2022-05-14

(On vacation for the rest of the month.  Going to Portugal.  Commentary will resume on June 1.   Good luck to us all.) The market is a fickle mistress. The major central banks were judged to be behind the inflation curve.

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Great Graphic: Euro’s (OECD) PPP

2019-06-12

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2019-06-12

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.

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The Better Way: Backing into Smoot-Hawley and Repeating the Flaws of PPP

2017-01-10

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2017-01-10

Part of the US Republican tax reforms call for a border adjustment. It will tax imports fully and not exports. This will likely be challenged at the WTO. Many economists say the dollar will automatically appreciate by 20%. WE are bullish the dollar but skeptical of the logic here.

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(2.1) OECD Purchasing Power Parity Index

The OECD purchasing power parity compares consumption prices in different countries.

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EUR/CHF, Market betting on Floor Hike, December 2011

2011-12-31

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2011-12-31

12-7 chf december 2011
Four Trades For 2012: #2 Sell The Swiss Franc I bought EUR/CHF shortly after the 1.20 peg was introduced and have held it ever since. My only regret has not been trading the range more aggressively. At this point everyone has an opinion of the SNB so I won’t try to convince the bears. Personally, … Continue reading »

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