Is There a Price To Pay For Fiscal Irresponsibility?
FX Outlook
March 08, 2010 Dave Bhagat
"Acquaintance A person whom we know well enough to borrow from, but not well enough to lend to." Ambrose Bierce, U.S. author and satirist (1842 – 1914), The Devil's Dictionary We must all be acquaintances of our respective governments, for Read More
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Call it Optimism
FX Outlook
March 02, 2010 Joe O'Leary
Over the past couple of months, sovereign risk has dominated the headlines in the foreign exchange markets. Financially strapped countries like Greece have put the euro on its longest losing streak against the dollar since November 2008. Debt investors have also grown concerned about budget deficits in other euro-region countries such as Spain and Ireland. The USD is has risen nearly 10 percent from its lows against the EUR from just two months ago. From my perspective, the entire episode confirms the dollar's status is still the world's only reserve currency. However, not all currencies are being punished. Read More
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Managing Sovereign Risk: the New Greek Tragedy
FX Outlook
February 23, 2010 Mark Noble
As we entered the new year, the perceived global economic recovery continued to sputter along as it did in 2H09. Last year's recovery theme was centered on supporting the global banking system via the central banks' strategy of flooding the market with massive amounts of liquidity and support. With the banking system in much better shape by year-end, the G-10 economies were expected to slowly build on the positive momentum and show real, identifiable progress in 2010. Read More
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A Tale of Two Currencies
FX Outlook
February 16, 2010 Fernand Kong
The Australian dollar (AUD) and the Canadian dollar (CAD) have a lot in common. They are both backed by economies that are reliant on commodity exports. For investors looking to hedge or speculate on commodities via foreign exchange, they both provide ample liquidity as the world's sixth and seventh most traded currencies. Read More
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China: Parables of Becoming the Lead Country
FX Outlook
February 08, 2010 Raja Ramachandran

“Have no friends not equal to yourself.” Confucius, The Confucian Analects“To have little is to possess. To have plenty is to be perplexed.” Lao tzu, The Way of Lao tzu What’s interesting about the quotes from these two great sages

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How Bad Is the European Debt Situation? Will It Drown the Economy or Sink the Euro?
FX Outlook
February 02, 2010 Laurence Hayward

Given last week's break of 1.4000 by the euro as the focus on the Greek debt situation continues, I thought it would be good to take a deeper dive into where the different countries that make up the euro stand.First,

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The Best of a Bad Bunch
FX Outlook
January 26, 2010 Dave Bhagat

As they tend to do with remarkable frequency, politicians and regulators have become involved in various markets around the world over the past week, and the results have not been pretty for the most part. 

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Has a New 'Mr. Yen' Surfaced?
FX Outlook
January 19, 2010 Scott Petruska

On January 7 of this year, the day after his appointment as Japan's finance minister, Naoto Kan stated that there was a need for the yen to weaken in order to help Japanese exporters. The markets did not treat this statement lightly, for it effectively reverses the long-held position of his predecessor, Hirohisa Fujii, of allowing the value of the yen to be determined solely by market forces. Fujii-san had resigned earlier in the week due to ill health. Kan explained that he "must work with the Bank of Japan to bring the yen to appropriate levels given its impact on the economy" and that "many Japanese firms favor yen at around ¥95." The currency markets were caught completely off guard by his comments and responded by selling the yen in a panic, driving it lower by more than half a yen vs. the dollar -ultimately to ¥93.77, its lowest level versus the dollar since last August.

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There's No Time Like the Present
FX Outlook
January 13, 2010 Joe O'Leary

In today's business environment, escalating a technology company into the international marketplace may no longer be just an option, but a necessity for growth. However, like any significant endeavor, conducting business across borders also has its challenges. 

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Is the USD Doomed?
FX Outlook
January 05, 2010 Fernand Kong

The holiday had brought tidings of comfort and joy for the USD and the U.S. market. Apart from the Asian economic recovery, recent U.S. employment data has lead to optimism that 2010 will bring further sustained economic improvement in the U.S. U.S. stocks marked recovery-trend highs, long yields ascending to four-month highs and the USD index rebounded to three-month highs.  

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