euro posts
FeedPosted Nov 5th 2009 4:30PM by Connie Madon (RSS feed)
Filed under: India, China, Brazil, Russia, Market matters, Money and Finance Today, Federal Reserve
The US dollar is down 20% since 2002 on a trade weighted basis. Other world economies like China are dynamic, with growth rates of 8 and 9%. With that kind of clout, countries like China, India and Brazil, can choose where to place their reserves.
Slowly, developing countries are shifting their reserves away from the dollar into the euro and yen. Neil Mellor, strategist at Bank of New York Mellon Corp (NYSE: BK), which has some $20 trillion dollars in assets under custody said: "I don't think there will be an imminent move, but it is quite clear there's a plan to shift reserves to a more balanced portfolio."
Barclays Capital Research reported that central banks placed 63% of new cash in non US currencies between April and July.
Continue reading Central Banks lead a shift away from the dollar
Posted Oct 13th 2009 3:10PM by Joseph Lazzaro (RSS feed)
Filed under: International markets, Federal Reserve

Investors have probably heard Obama administration officials, like previous Bush administration officials –- and just about every other administration since 1981 -- rattle off the mantra,
'The United States is committed to a strong dollar' even as the dollar continues to weaken. What's going on here?
Well, first: the currency market, long-term, emphasizes actions, not words, and current U.S. public policies do not support the dollar. To strengthen it, the U.S. must cut its trade deficit, eliminate the budget deficit, and get the U.S. economy growing at an adequate rate again.
Continue reading What does the U.S. mean when it says it 'supports a strong dollar' ?
Posted Oct 13th 2009 1:50PM by Michael Fowlkes (RSS feed)
Filed under: Forecasts, Market matters, Money and Finance Today, Commodities, Oil, Financial Crisis

The U.S. dollar continued to decline today, and has helped push
gold prices up sharply in today's action.
The dollar has been very weak lately, and as more concern mounts of the dollar's strength more investors are rushing into the precious metal, which traded up as high as $1,069.70 today, and is currently up $1.70 an ounce to $1,059.20.
Continue reading Gold soars as dollar continues to weaken
Posted Sep 18th 2009 6:40PM by Joseph Lazzaro (RSS feed)

What's next for the dollar? Good question. It depends on which set of economic data points you emphasize, or which mindset/narrative you believe is dominant in the currency markets.
After a nearly two-week decline against the world's other, major currencies, the dollar see-sawed with the euro for the upper hand Friday, as dollar bulls and dollar bears each tried to make their case that their view was more supported by current conditions. The
dollar strengthened one-half cent versus the
euro to $1.4696 and about 1.8 cents versus the
British pound to $1.6260 on Friday at mid-day.
Continue reading Dollar's rise may be brief
Posted Aug 27th 2009 3:00PM by Joseph Lazzaro (RSS feed)
Filed under: International markets, Forecasts

Where's the dollar headed from here? Well, if you're in the camp that argues both monetary and fiscal stimulus guarantee rising inflation, the dollar will trend lower in the immediate quarters ahead, and probably for longer.
If you're in the camp that argues that given asset destruction, and massive job lay-offs, pricing power is non-existent, the dollar will hold its own against the world's other major currencies.
Continue reading Is the dollar about to plunge?
Posted Mar 25th 2009 8:30AM by Paul Foster (RSS feed)
Filed under: Options
iShares Barclays Capital Long Term Tr ETF (NYSE: TIP) closed at $102.35. TIP April call option implied volatility is at 10, puts are at 8; below its 6-month average of 13, according to Track Data, suggesting decreasing price risk.
PowerShares DB US Dollar Index Down (NYSE: UDN) is a rules-based index composed solely of short USDX® futures contracts. The USDX® futures contract is designed to replicate the performance of being short the U.S. Dollar against the following currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc. UDN closed at $25.52. UDN May option implied volatility of 20 is below its 26-week average of 25, according to Track Data, suggesting decreasing price movement.
PowerShares DB US Dollar Index Up (NYSE: UUP) is a rules-based index composed solely of long USDX® futures contracts. The USDX® futures contract is designed to replicate the performance of being long the U.S. Dollar against the following currencies: Euro, Japanese Yen, British Pound, Canadian Dollar, Swedish Krona and Swiss Franc. UUP closed at $25.31. UUP May call option implied volatility is at 17, puts are at 21; below its 26-week average of 22, according to Track Data, suggesting decreasing price movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.
Posted Mar 17th 2009 5:15PM by Todd Harrison (RSS feed)
Filed under: Industry
This post was written by Minyanville contributor Lance Lewis.
The FOMC will issue its statement tomorrow at the conclusion of its two-day meeting. With interest rates already at virtually zero, there's obviously not going to be any change in that department. However, I do believe there is a high probability that the Fed will follow the Bank of England's example and begin buying government bonds (i.e. – quantitative easing or "printing money") on top of the agency debt and MBS that it is already monetizing.
Continue reading FOMC playbook
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