Category Archives: Currency

Making The World Great Again

Maybe President Trump should not read this but last year was all about “Making The World Great Again.” Financial Markets As the data and graphs illustrate below, the U.S. stock market was in the bottom quintile of performance in dollar … Continue reading

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The Year In Review

An incredible year in the markets. Here’s a quick snapshot: Fixed-income – The high yielders significantly outperformed; – Greece 10-year yield down 300 bps in 2017; – China 10-year moved 85 bps higher to around 4 percent; – The U.S. … Continue reading

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Week in Review – August 18

Stock Indices Argentina stocks up big after the ruling coalition did better than expected in primary legislative elections last Sunday.  Emerging markets generally better bid than DMs.   Europe traded better as it looks the mighty Euro is taking a rest … Continue reading

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Dollar Index & Mexican Peso Dancing To The Same Tune

What tune is that?   The Trump slump. Even though the Euro makes up almost 58 percent of the dollar index,  the dollar is going down  for the very same reasons the Mexican peso is going up.   The poor start … Continue reading

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Mexican Peso Recovers All Of Its Trump Losses, Then Some

The Mexican peso,  after falling 18 percent against the dollar from the U.S. presidential election day to the day before the inauguration on January 19,  it has rallied almost 20 percent from its low, and is now up 15 percent … Continue reading

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2017 First Half Key Takeaways

Bonds  Big outperformance by local emerging markets and Euro periphery in first half.  Last week was pivotal as some bonds gave back almost entire year due to ECB hawkishness.  Watch this space.  More big moves here will determine asset trading … Continue reading

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Talking ’bout Mexico – JT

So King David at thinkinthemorning.com sends over an article showing U.S. stocks with revenue exposure to Mexico.   Starts us thinking about who is smarter,  equity traders or currency traders,  who follows who,  or who is fooled by randomness? . … Continue reading

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Almost All World’s Currencies Undervalued

We’ve put together a couple of tables showing the undervaluation of the world’s currencies based on their 2016 purchasing power parity against the U.S. dollar. The Purchasing-power-parity (PPP) between two countries is the rate at which the currency of one … Continue reading

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How Are Those “Crowded Trades” Doing?

We take a look here at what BofA/Merrill Lynch has surveyed as the “most crowded trades” in the market.  Most are taking on water as the crowd is leaning to the same side of the boat. Big losses for Japanese … Continue reading

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Cheap Big Macs Around the World

Turkey, the UK , and Mexico (“undervalued by a whacking 55.9% against the greenback”) have gotten much cheaper over the past year. The Big Mac index is built on the idea of purchasing-power parity, the theory that in the long … Continue reading

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