The FOMC, Quantitative Easing and the Dollar
The currency market view of quantitative easing
Monetization or a stable dollar
The normalization of Treasury rates
A foreign veto on quantitative easing?
After a few months out of the currency spotlight the Federal Reserve will once again be the focus for traders when the Federal Reserve Open Market Committee (FOMC) meets this [...]
The FOMC, Quantitative Easing and the Dollar
After a few months out of the currency spotlight the Federal Reserve will once again be the focus for traders when the Federal Reserve Open Market Committee (FOMC) meets this coming Wednesday and Thursday. This time it will not be the Fed Funds target rate, the central bank’s chief [...]
Treasury Rates and the Dollar
In a normal world these two charts would be complementary. As interest rates on the 10-year Treasuries rise one could reasonably expect the Dollar Index to follow. But ever since March18th when the Federal Reserve announced its $300 billion quantitative easing policy, the divergence has been pronounced.—the higher Treasury [...]
The Green Revolution?
Several confidence measures in the United States have returned to the levels they held before the great financial collapse last fall. Do they presage an impending economic recovery?
US Consumer Confidence readings from the Conference Board and University of Michigan have pulled out of their deep post September troughs. The same is true [...]
Crosscurrents
The factors driving the dollar seem to vary with the season. Last fall at the height of the financial crisis safe haven flows trumped all considerations; at one point investors accepted zero return for the security of holding US debt. The dollar rose 17% against the euro in a month and made similar gains [...]
