The United States’ attempt to rebalance the global economy to better serve its interests has resulted in the flight of capital out of the country, harming American businesses and consumers. … READ MORE >
currency markets
Market Minute: FX volatility dampening dollar valuation vs. peso and rupee
A Black-Scholes model of one-month at-the-money implied volatility options against the Mexican peso and Indian rupee suggests that investors are expecting a last-minute deal that would lower the impact of the tariffs. … READ MORE >
Market minute: The volatility smile in a time of trade disruption
One way to understand the financial impact of policy uncertainty is to look at the implied volatility of important bilateral currency pairs. … READ MORE >
The new mercantilism: Tariffs and currency manipulation in an era of U.S.-China tensions
After decades of growing trade and current account imbalances in the U.S., the new administration has set out to change this equation. Now, a new mercantilism, rooted in tariffs and trade protection, is emerging. … READ MORE >
Morning market minute: Tariffs and the rising dollar
With steep tariffs on goods from Canada, Mexico and China set to begin Tuesday, one should expect the greenback to continue is ascent against major trading currencies. … READ MORE >
Morning market minute: Emerging market currencies at risk of depreciation
Economies with inadequate capital buffers, economic imbalances featuring large import volumes or those with weak financial systems will be at risk to larger-than-anticipated currency depreciations. … READ MORE >
RSM UK Financial Conditions Index implies rising risk of instability
The RSM UK Financial Conditions Index is warning of a dramatic increase in credit risk that, along with the depreciation of sterling, has the potential to derail commercial activity. … READ MORE >
Amid global economic turmoil, stress grips fixed-income markets
Fixed-income markets are signaling a shift in perceptions of financial stability and raising a caution flag for investors. … READ MORE >