Emerging market currency
Although a deal on private sector writedowns of Greek debt has yet to be reached, the risk rally that began in October 2011 remains in place. Measures taken by the European Central Bank, such as cutting interest rates and providing unlimited banking sector liquidity, have certainly helped stabilise financial markets in the eurozone and beyond – with the VIX volatility index on a clear downward path towards multi-year support around 15.0. (See chart below, click to enlarge)
Equities worldwide have made a strong start to the year. One market that could potentially be nearing an inflection point is China’s. As we previously argued on Business Monitor Online, the Shanghai Composite Index stands to benefit, if we are correct in our expectations of further monetary policy easing by the People’s Bank of China through the coming months as growth cools and inflation moderates further. Downtrend resistance comes in at 2, 350.
Shanghai Composite Index
Although the US dollar has strengthened against the euro over the course of the Q4 2011-Q1 2012 rally in global equities, with euro strength still expected to be fleeting in the face of ECB easing, many other currencies appear primed for further upside against the greenback.
Source: Risk Watchdog
Handbook of Emerging Fixed Income and Currency Markets (Frank J. Fabozzi Series)
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Moody's Downgrades Italian Banks2012-05-22 08:37:14 by YT01STL-A
Moody's Downgrades Italian Banks
Moody's Investors Service kicked off its long-awaited downgrades of European and global banks by docking the credit ratings of 26 Italian lenders, a move that could ratchet up the continent's banking woes at a critical time for the currency union.
The downgrades, which cite the banks' vulnerability to mounting loan defaults and potential funding problems, were expected, but they nonetheless add to concerns by making it more expensive for the banks to finance themselves via the capital markets.
The ratings for Italian banks are now among the lowest within advanced European countries, reflecting these banks' susceptibility to the adverse operating.
Wake up America!!!2012-05-01 20:35:59 by DermalDeviant
This is my response to a question I read elsewhere about the possibility of American media being dishonest/misleading or would
they /could they ever feed us propaganda or censor vital news in a modern technological age, where communication over great distances is nearly instant and video cameras are everywhere.. I
Well to answer that question, the fact is that the mainstream media here today is PRIMARILY fed propaganda and distraction. It has been this way for nearly a century.
To understand this thoroughly you must look at this story like most, from the beginning. In 1913 The Federal Reserve Act was passed (google it, the story is insane!). The passing of the (unconstitutional) Federal Reserve Act meant that the US Government will forfeit all rights to coin (or...
Emerging Local Funds Trail Dollar Debt First Time Since 2007 — BusinessWeek
“There is room for emerging-market currency appreciation as economic fundamentals continue to support the asset class, including positive growth differentials versus advanced countries,” he wrote in an emailed response to questions.
The Case For Currency And The Emerging Market Currency ETF — Seeking Alpha
The currency market has exploded in terms of growth, since the shift to the flexible exchange rate system in the early 1970s. The primary reason is increasing globalization of the economy that has led to rapid growth in cross-border trading.
Controlling Currency Mismatches In Emerging Markets
Book (Peterson Institute)
Unusual Pairings Emerge in Currency Market — Wall Street Journal
While these bets offer some degree of immunity to global turmoil, some trades—especially those in which one emerging-market currency is directly settled against another—can be difficult to unwind in times of market stress.
Preventing Currency Crises in Emerging Markets (National Bureau of Economic Research Conference Report)
Book (University Of Chicago Press)
Currency Crises in Emerging Markets
Emerging Market ETFs for Yield — ETF Trends
Emerging market bonds are a hedge on the US dollar, while adding portfolio diversification. For those investors that want to avoid foreign currency risk, there are ETFs that offer yields without the added exposure. [Emerging Market Currency ETFs]