Fishing for a Bottom to Dollar-Yen

Fishing for a Bottom to Dollar-Yen

photo: faungg Since the initial spike higher when the BOJ provided some operational tweaks to its asset purchase program on December 18, the dollar has fallen 5.6% against the yen through Tuesday’s low near JPY116.70.  We had warned that the break of JPY120 would spur a move to JPY118, and the move below JPY118 targeted the August low near JPY116.20. While […]

The City, Wall Street, and the Great Renminbi Race

The City, Wall Street, and the Great Renminbi Race

photo by: Sam Valadi Of the world’s two largest international financial centers, London is warming up to the renminbi, but Wall Street is running behind. Recently, the former mayor of New York City Mike Bloomberg congratulated President Barack Obama and President Xi Jinping for a number of economic steps, but in particular “advancing a mechanism to […]

China, Not Piketty, Explains ‘Confused Signals’ in U.S. Asset Prices

The FT’s Ed Luce recently took on the “confused signals” being sent by U.S. stock and bond prices moving in sync (upward). Which is it, he asks?  Are economic prospects good, as stock prices suggest, or bleak, as bond prices suggest? Both and neither, he offers.  High-end retailers like LMVH and Tiffany are doing great, he says, […]

China’s Oil Hoarding Is Raising Prices

By Nick Cunningham: China has been buying up oil at a record pace in order to stockpile reserves for a rainy day as part of its strategy to insulate the country from geopolitical conflict or supply disruptions. It’s modeled after the U.S. strategic petroleum reserve (SPR). However, the heightened rate at which China is purchasing oil is […]

Evidence of Hampered Monetary Policy Transmission Channel in the Euro Area

Mario Draghi cautioned on the ‘hampered’ transmission channel of monetary policy in his now famous London speech last week: To the extent that the size of these sovereign premia hampers the functioning of the monetary policy transmission channel, they come within our mandate. I referred to the clogging of rates policy back in April via […]

EA Spreads: Why Should the Trend Change?

They changed the title; but originally the NY Times reported “Euro Zone Agrees to Reinforce Maastricht Rules“.  That’s exactly what EA policy makers agreed to last week – not much to bring home. The real shift in policy came from the ECB. Ambrose Evans-Pritchard highlights the ECB’s actions as ensuring some sort of bank profitability, while […]