By Enrique Diaz – Alvarez* The annual meeting of the world’s central bankers in Jackson Hole delivered a decidedly hawkish message, led by US Federal Reserve Chairman Powell giving a very short and clear speech. However, currency markets seem to have priced in this development, and the reaction was relatively subdued. All G10 currencies are […]
Tag: dollar
The dollar strengthened to a 20-year high
The dollar strengthened to a 20-year high today after Fed Chairman Jerome Powell signaled that interest rates will be kept higher for longer to reduce inflation. The index of the exchange rate of the US currency against a basket of other major currencies climbed to 109.48 points. Despite statements from European Central Bank officials over […]
The euro is at a new 20-year low
The euro is falling to a new two-decade low as concerns about the prospects for the European economy intensify. The euro was found to be losing 1% at 0.9938, below its previous 2022 low of 0.9952. This is the lowest level since 2002, just a few years after the creation of the single currency. Europe’s […]
‘Jump’ for Turkish foreign exchange reserves after the influx of Russian funds
Turkey’s official reserves rose by the most since February, after Russia’s Rosatom injected cash into a Turkish subsidiary. Turkey’s total gross reserves increased by about $3 billion through last week, with gold accounting for $1.6 billion of the increase and foreign exchange the rest. Gross foreign exchange reserves stood at $61.1 billion and gold at […]
The deeper market implications of Pelosi’s visit to Taiwan
The immediate impact on markets from Nancy Pelosi’s visit to Taiwan appears to be fading, but it’s leaving fund managers pondering how to approach the shaky relationship between the world’s two largest economies. As Bloomberg notes, investors are trying to outline the long-term impact the US House Speaker’s trip will have on the market. From […]
The Russia-Iran experiment to ‘ostracize’ the dollar
By Dominic Dudley Russia and Iran have begun to take some small but significant steps toward ostracizing the dollar from their bilateral trade by testing a system of settlements in their national currencies. In July, after the governor of Iran’s central bank, Ali Salehabadi, visited Moscow, the Iranian Foreign Exchange introduced the ruble-riyal pair. With […]
HSBC, JP Morgan: One-way short positions in the euro – Dive to $0.95 soon, the risks for the eurozone are in the red
Her Eleftherias Kourtalis Short positions in the euro are recommended to investors by HSBC and JP Morgan, assessing which upward movement is an opportunity to build bearish “bets”, given the many and significant challenges facing the eurozone economy, with fears of a recession hitting already the door of the area. EUR/USD will retest recent lows […]
Inflation ‘bites’ currencies and the dollar ‘holds the crown’
By David Westenhaver The US dollar has been the “king of currencies” worldwide for 75 years. Although inflation-shocked Americans don’t realize it, its purchasing power remains greater against other major currencies – a boon for Americans, albeit at a cost. Inflation is eroding the value of the euro, yen and pound at a faster rate […]
Why absolute euro-dollar parity is ‘bad news’ for stocks
By Eleftherias Kourtalis And where investors in Europe thought the outlook for stocks couldn’t get gloomier given the ongoing energy and inflation shocks and recession fears, the euro has hit absolute parity with the dollar for the first time in two decades, creating new challenges for stock markets and further clouding the investment outlook. Since […]
Heavy bill on the economy from the slide of the euro
By Tasos Dasopoulos Another pressure on the one already exerted by high inflation for more than a year is added by the slide of the euro, since it indirectly fuels the increase in the prices of fuel and some of the raw materials, which are imported from third countries, since they are priced 65% in […]