A new front in currency wars

The surprise news out of Cyprus last week certainly intensified dollar strength we’ve seen over the past month. The chart above shows the year to date performance of the US Dollar (USD, green area curve) compared to the Euro ($XEU, red line), Pound Sterling ($XBP, pink line) and the Yen ($XJY, black line). Since [...]

And so the currency wars …

Last month’s G20 finance ministers meeting in Moscow ended with the proclamation they would “refrain from competitive devaluation”. Well, someone should tell the left hand what the right hand is up to. The chart above details the Yen index ($XJY, black line) and Pound index ($XBP, blue line) compared to the US Dollar index [...]

Currency Wars

The G20 Finance Ministers meeting in Moscow last week ended with the proclamation that there would no currency wars. Historically when the G20 Finance ministers make public statements like this they are privately doing the opposite. These press releases are solely for public consumption, the ministers aren’t so much concerned about the decline in [...]

The unnatural strength of the US Dollar …

The Euro trades the lowest its been in 18 months, the Yen drops on rumours of further BOJ interventions even as the technical analysis guys say the US Dollar could strengthen another 20% against the Yen when will it all end?

Perhaps not soon. Best to go along with strong dollar in the [...]