Euro’s fall or dollar’s rise?

Posted on 06. mar, 2010 by Jean Jacques Ohana in Weekly Focus

The EUR dropped from 1.50 USD to 1.36 USD in two months. Many reasons have been invoked to explain the demise of the euro: governance failure within the euro zone, failure to set up credible assistance measures to help countries with worrying public debt burdens such as Greece, Portugal and Spain.

Value of one euro in [...]

Deciphering carry trades

Posted on 12. fév, 2010 by Jean Jacques Ohana in Weekly Focus

Carry trades have been made popular in the past decade due to the stellar performance registered in this type of strategy. Basically, it consists in borrowing in low yield currencies and investing in high yield currencies, in order to exploit interest rates differentials between currencies.
What is more striking is the diverse business interest in this [...]