Headline EM FX Reserves Distort the Real Story
The headline fall in emerging market central bank FX reserves in recent months is causing much consternation and talk of EM demise. But dig below the raw numbers and a more benign picture emerges. First, the sharp fall in the USD-value of emerging market central bank FX reserves in Q1 2015 was due to FX valuation effects, namely the slump in EUR-USD.
SocGen’s Edwards: Yen Collapse Will Spur More Economic Turmoil
The Japanese yen’s decline to a 13-year low against the dollar may trigger more global economic turmoil as other countries take steps to devalue their currencies in an effort to be competitive, said Albert Edwards, head strategist at Société Générale.
The Dollar as a Safe Haven is a ‘Fact that is Not a Fact’
In recent years, few things in the investment world have attained the status of received wisdom more than the idea that the US dollar is a “safe haven” in tumultuous times.
Euro Bulls Retreat with Draghi Set to Stick to Stimulus Message
One day after the euro’s biggest gain in 10 weeks versus the dollar, the bulls are in retreat with European Central Bank President Mario Draghi set to maintain stimulus measures even amid signs of revival in the region’s economy.