Forex

February 27 2013 2:57 PM

As China enters the "Year of the Snake," Singapore stands as a beacon of sound currency in a world gone mad. China's renminbi remains pegged to the US dollar, while even steadfast Switzerland has followed the US, UK, EU, and Japan into an impoverishing strategy of currency debasement. Singapore, alone, has been able to sustain genuine economic growth in the context of a strong national currency.

February 27 2013 9:21 AM

The euro rebounded only slightly on Wednesday and traded at 1.3076 at 9:53 GMT on Monday morning. The increase can be attributed to Federal Reserve Chairman Ben Bernanke's reassurance that the US central bank was on track with its stimulus plan which eased market worries on Tuesday. Italy remains the main focus in the eurozone after an inconclusive election left investors feeling uncertain about the fate of the entire region. The vote, in which Italians opted for anti-austerity promises, sent a message that Italians are fed up with the German-led crisis management and ignited worries that this rejection of the current path to recovery could spread to other struggling nations.

February 26 2013 9:52 AM

I've said since the beginning of 2009 that any future "recovery" experienced by the markets and the economy would be derived through massive government spending and Federal Reserve debt monetization. Therefore, the logical conclusion must be that when or if fiscal and monetary austerity is eventually adopted, the economy and markets would crash.

February 25 2013 9:36 AM

Economic data flagged a growing risk of recession in the euro zone's second biggest economy, France, on Thursday, but investors nonetheless snapped up the country's bonds, banking on them as a safe bet. Hot on the heels of Paris's admission that it would overshoot its deficit target this year and that growth would be a minimal 0.3 percent at best, a survey showed that business activity this month contracted at the fastest pace in nearly four years.

February 21 2013 12:11 PM

In a classic example of stepping over dollars to pick up pennies, chatter is getting louder that the United States could follow Canada’s lead and reduce its production of certain coins. Earlier this month, the Royal Canadian Mint officially ended its distribution of pennies to banks and retailers, in an effort to save money since production costs now exceed their face value. The government estimates that it cost about $11 million a year to supply pennies to the Canadian economy. Now, the big spenders in Washington D.C. may look under the couch cushion for similar savings.

February 20 2013 12:11 PM

The interest rate on the Ten-year Note has risen from 1.58% on December 6th of last year, to as high as 2.03% by mid-February. Most equity market cheerleaders are crediting a rebounding economy for the recent move up in rates. According to my count, this is the 15th time since the Great Recession began that the economy was supposedly on the threshold of a robust recovery.

February 19 2013 11:53 AM

As the global currency war intensifies, the majority of attention has been paid to the 17% fall of the Japanese yen against the U.S. dollar over the past few months. The implosion has given cover to the sad performance of another once mighty currency: the British pound sterling. But in many ways the travails of the pound is far more instructive to those pondering the fate of the U.S. currency.

February 18 2013 10:04 AM

The euro began the week on a low, trading at 1.3326 at 8:22 GMT on Monday morning. The common currency is still regarded cautiously after GDP data last week showed the region was still deep in recession at the end of 2012. After major eurozone economies like France and Germany contracted at a higher rate than expected in the fourth quarter, many were left wondering if the currency's recent strength was based on any fundamental economic factors.

February 15 2013 9:43 AM

G20 Meeting Unlikely to Break New Ground on FX Intervention Policy. Euro May Recover if Weekly LTRO Repayment Exceeds Recent Trends. Yen Advanced in Asia as Stocks Fell, Muto Tipped for Top Spot at BOJ