The dollar’s recent five-month appreciation versus the euro appears to have topped out, reversing the dollar’s move toward parity. … READ MORE >
U.S. dollar
Market minute: The policy determinants of the rising euro
The euro is poised to appreciate against the dollar as the continent loosens fiscal restraints to rebuild its defenses. … 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 >
Market minute: Canadian dollar remains under duress
Should higher tariffs on Canada announced by the United States take effect, we would expect the value of the loonie to continue depreciating against the dollar. … READ MORE >
Market minute: Clash of the titans to cause further currency manipulation
The relative yield differentials between the U.S. and China point to the possibility that China will engineer a gradual, but large, depreciation in the yuan this year. … 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: Managing currency risk in an era of regime change
We expect the international investment community to continue purchasing U.S. financial assets, and in particular to continue financing the U.S. budget and trade deficits. … READ MORE >
Morning market minute: Managing the dollar’s risk, volatility and tariffs
A look at the implied volatility of the dollar-euro pair suggests that there is ample room for dollar weakness and volatility until tariff policies are resolved … READ MORE >
Morning market minute: The contradictions at the heart of U.S. economic policy
The Trump administration’s policies will cause the trade and current account deficits to widen, not narrow. … READ MORE >
Morning market minute: India’s rising capital buffer and the end of its currency peg
As India has gained prominence in the global economy, its central bank, the Reserve Bank of India, has wisely increased the level of foreign exchange holdings. … READ MORE >