The bullish dollar theme is still present

Posted on 09. nov, 2011 by Riskelia in Weekly Focus

During the last weeks, the dollar seesawed between sharp positive phases reflective of defiance towards risky assets and sharp negative phases associated to a more optimist stance over the resolution of the financial crisis. Yet, the nervous switch between risk/risk off mode has not altered the long term dollar positive trend as showed in figures [...]

What does the emerging currencies meltdown foretell?

Posted on 20. sept, 2011 by Riskelia in Weekly Focus

For sure, the event of the week has been another form of quantitative easing: the agreement reached by the developed countries core central banks (Fed, ECB, BOE, BOJ, SNB) to provide unlimited dollar funding to European bank.
Meanwhile, cyclical markets have responded in contrasting ways. As equities rose, credit markets were less enthusiastic and emerging currencies [...]

Why will the yen depreciate?

Posted on 12. avr, 2011 by Christophe Lerolle in Weekly Focus

The yen is rated among the most bearish recommendation against a basket of G10 currencies and there are three main reasons why yen is likely to depreciate against the other currencies:

Risk Aversion has markedly evolved towards negative territory which bodes well for risk taking. In particular, figure 3 shows that filtering the short yen when [...]

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 [...]