Markets

by Claus Vistesen (picture courtesy of International Business Times) Update: I was so caught up with Ireland today that I didn't notice how Greece also wants its part of the limelight. But fear not; Joseph Cotterhill from Alphaville…

The Fed’s announcement of a renewed commitment to Quantitative Easing has been well telegraphed and the market’s reaction is likely to be subdued. We are in a “liquidity trap,” where interest rates or trillions in asset purchases may…

If you are a corporate CFO, now is the time to issue bonds because interest rates are very low, courtesy of the Federal Reserve. And companies are doing that from IBM, to J&J and Microsoft. These companies don't need the money; they see…

Highlights The US dollar is retaining its new found firm tone.  Position adjusting ahead of next week’s key events continues to dominate, encouraged by the loss of the dollar’s downside momentum.  Softer Australian CPI (2.8% in…

Into the European close, the euro has broken down further.  A break below $1.3835 warns of the increased risk of a return to last week's low near $1.3700.  The unwinding of long euro cross positions, especially against sterling…

Short clip below. Regarding the comments about Citi, see this article here. This is not new news because Bowen testified in April (see here). Yet, nothing was done in the intervening six months until the foreclosure crisis precipitated…

Highlights The US dollar is still consolidating/correcting its recent decline against most of the major currencies today.  The notable exception is the British pound, where a considerably stronger than expected initial estimate of…

This graph comes via the Council on Foreign Relations (hat tip James Fallows).   The Chinese were implementing a gradual revaluation before the credit crisis. They stopped revaluing their currency versus the USD in 2008. And…

Here's an interesting note on quantitative easing and asset allocation from Andy Lees of UBS.  He says: The attached chart gives a simple overlay of the front month 10 year US Treasury future vs the front month S&P future. As…

Highlights The US dollar is broadly weaker in the wake of the G20 statement that appeared to encourage flowing in emerging markets and risk assets in general.  Leading the move is the Australian dollar and Swedish krona.  The…