After a slight respite following the culmination of the Eurozone debt crisis, emerging markets financial markets are back to the their former selves, with stocks, bonds, and currencies all performing well. The rally is being driven by two principal factors. First, investors came to the gradual realization that the trend towards [...]
Today marks the one-month anniversary of China’s decision to remove the Yuan’s peg to the Dollar, and allow it to float. Now that the news has had a chance to wend its way through the financial markets, I think it’s time both to reflect and to forecast. Over the last month, the Chinese RMB has [...]
As I pointed out in last Friday’s post (Volatility, Carry, Risk, and the Forex Markets), volatility has been declining in forex markets since peaking after the collapse of Lehman Brothers. In fact, volatility among emerging market currencies has been falling particularly fast, and recently, something amazing happened: “Three-month implied volatility for the seven biggest developing [...]
Greek cabinet unveils 4.8 bln euro austerity plan FOREX-Euro rises vs dollar after Greek austerity plans Trading in the euro/dollar was volatile and markets remained wary over whether the plan would be enough for Athens to win financial support from Germany and France. “We believe today’s developments go a long way towards pacifying the markets [...]
See AlsoOverseas Markets & Loonie Ahead of the BoC AnnouncementKathy Lien speaks on overseas markets & Loonie ahead of the BoC Announcement.
Let me preface this post, by noting that I try to avoid writing about gold, since there are some many other excellent analysts out there writing about the subject. But when there is a such a strong overlap between gold and forex markets, well, I just can’t resist! Recently, gold prices have collapsed at virtually [...]