It looks like emerging market investors took my last post (“Investors” Shouldn’t Worry about the Euro) to heart, since emerging markets (EM) have continued to rally in spite of the Euro’s woes. To be sure, EM stocks, bonds, and currencies all dipped slightly in May when the crisis reached fever pitch, but they have since recovered their losses and are once again en route to record highs.
Emerging Markets Rally, Despite Eurozone Debt Crisis
Tuesday, June 29, 2010
Labels:
Emerging Currencies
China Revalues RMB….by .4%
Thursday, June 24, 2010
It was only last week that I mused about “Further Delays in RMB Revaluation.” Lo and behold, over the weekend, the Central Bank finally budged, by pledging to the members of the G20 that it would ” ‘proceed further with reform‘ of the exchange rate and ‘enhance’ flexibility.” Upon reading this, I suppose I should have felt stupid.
Labels:
Chinese Yuan (RMB)
China Revalues RMB….by .4%
It was only last week that I mused about “Further Delays in RMB Revaluation.” Lo and behold, over the weekend, the Central Bank finally budged, by pledging to the members of the G20 that it would ” ‘proceed further with reform‘ of the exchange rate and ‘enhance’ flexibility.” Upon reading this, I suppose I should have felt stupid.
Labels:
Central Banks
SNB Abandons Intervention
Tuesday, June 22, 2010
The Swiss National Bank (SNB) has apparently admitted (temporary) defeat in its battle to hold down the value of the Franc. ” ‘The SNB has reached its limits and
if the market wants to see a franc at 1.35 versus the euro, they won’t
be able to stop it.’ ” The markets have won. The SNB has lost.
Labels:
Central Banks
Further Delays in RMB Appreciation
Thursday, June 17, 2010
Throughout 2010, I have continuously reported
on the apparent inevitability of the Chinese Yuan appreciation. That
the currency still remains firmly fixed in place against the Dollar is a
testament not only to the unpredictability of forex, but also to the
doggedness of Chinese officials.
Labels:
Chinese Yuan (RMB)
No US Rate Hike in 2010
Tuesday, June 15, 2010
In the midst of the Eurozone debt
crisis, forex investors have largely stopped paying attention to
interest rate differentials and focused the brunt of their attention on
risk. Soon enough, however, there will be a resurgence in the carry
trade, at which point interest rates will return to the forefront of
investors consciousness.
Labels:
Central Banks
Risk Aversion Hits Australian Dollar
Sunday, June 13, 2010
These days, I feel like you could take that title and substitute pretty much any currency for the Australian Dollar.
Let’s face it- the EU sovereign debt crisis has hit a number of
currencies extremely hard, as investors have fled anything and
everything risky, in favor of the US Dollar, Swiss Franc, Japanese Yen,
and Gold.
Labels:
Central Banks
EU Crisis Punishes Korean Won
Tuesday, June 8, 2010
The South Korean Won has been one of the biggest losers from the EU
sovereign debt crisis. After a stellar 2009, the Won is off to a shaky
start in 2010, and has lost 12% of its value in the last month alone.
According to analysts, The won is “most sensitive to risk aversion”
of any currency in Asia – or even the world. Thus, when the President
of Hungary likened his country’s fiscal situation to that of Greece and
inadvertently ignited fears that the crisis was spreading, the Korean
Won immediately fell by 5% – the largest decline in 17 months.
Labels:
Central Banks
EU Crisis Punishes Korean Won
The South Korean Won has been one of the biggest losers from the EU sovereign debt crisis. After a stellar 2009, the Won is off to a shaky start in 2010, and has lost 12% of its value in the last month alone. According to analysts, The won is “most sensitive to risk aversion” of any currency in Asia – or even the world. Thus, when the President of Hungary likened his country’s fiscal situation to that of Greece and inadvertently ignited fears that the crisis was spreading, the Korean Won immediately fell by 5% – the largest decline in 17 months.
Labels:
Emerging Currencies
EUR/USD: The Next Benchmark is Parity
Saturday, June 5, 2010
The Euro has now declined for six consecutive months against the
Dollar. It is down 25% from its 2008 high and 15% in the year-to-date.
It declined 8% in the month of May alone. En route to a four year low,
the Euro also fell below the 50% retracement level ($1.21) of its rally
from 2000-2008. It’s now too clear where the Euro is headed: parity.
Labels:
Central Banks
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