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Tag Archives: Euro

Third Mega-Crisis in 12 Years: Eurozone Economy Plunges at Fastest Rate on Record

First the Global Financial Crisis, then the Euro Debt Crisis, now the Big One. By Nick Corbishley, for WOLF STREET: In its 21 years of official existence, the Eurozone has already been through two brutal crises — the Global Financial Crisis and one of its own doing, the Euro Debt Crisis — that nearly tore the bloc apart. Now, it is in the grip of another one that is already exacting a larger toll than the first two, despite having barely begun. The preliminary GDP in the first quarter...

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Demand for Bank Notes in Dollars & Euros Spikes Despite Fears of Covid-19 Contaminated Cash

A curious phenomenon. By Nick Corbishley, for WOLF STREET: In the United States, as coronavirus concerns grew and state after state went into lockdown, and as consumption plunged and unemployment exploded at a previously unimaginable rate, the amount of physical dollars in circulation spiked to $1.89 trillion, as of the Federal Reserve’s balance sheet on April 16, having jumped 9.1% compared to a year earlier. During the darkest days of the Financial Crisis, the demand for U.S. dollar...

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Status of US Dollar as Global Reserve Currency v. Euro, Yen, Chinese Renminbi, & Others

Latest data is out. Folks who hoped the Renminbi would break the dollar hegemony have to be very patient. By Wolf Richter for WOLF STREET. The US economy and financial system – including being able to maintain and fund the gargantuan trade deficits and fiscal deficits – has become reliant on the dollar being the dominant global reserve currency. And the IMF just released its next installment on how this status has been changing. Total foreign exchange reserves in all currencies...

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US Dollar Status as Global Reserve Currency Slides

Chinese Renminbi struggles forward in slow micro-steps. If the US dollar loses its hegemony as a global reserve currency, it would be a sea change globally, and specifically for the US economy. Today, we got the next installment in that saga, via the IMF’s quarterly COFER data on foreign exchange reserves. Total global foreign exchange reserves in all currencies ticked up 1.1% from the first quarter, to $11.7 trillion. US-dollar-denominated exchange reserves rose only 0.7% to $6.79...

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Fed’s Powell: No Negative Interest Rates at Next Crisis

The Fed has different priorities than the ECB, the Bank of Japan, the Swiss National Bank, et al. During the press conference today following the FOMC meeting, Fed chair Jerome Powell was asked if and when the Fed would push its policy interest rate into the negative. Powell did not respond with his usual, “we will act as appropriate.” He had a real answer. For months, there has been clamoring from Wall Street and speculators, and from the White House, that the Fed should or would cut...

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Foreign Exchange Trading Soars to $6.6 Trillion a Day, US Dollar is Total King

Ginormous numbers, FX swaps and spot trades, USD, EUR, JPY, GBP, Australian & Canadian dollars… but where the heck is China’s CNY? It happens every three years: The Bank for International Settlements released its Triennial Central Bank Survey about the global foreign exchange (FX) and over-the-counter (OTC) derivatives markets, as it occurred in April. The numbers are ginormous, and get more ginormous with every survey, with trading volume measured in trillions of dollars per day....

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Are We Revisiting 1973?

A Pfennig For Your Thoughts September 17, 2019 * It’s all about the dollar again this week… * Is the Fed about to disappoint the markets? Good Day… And a Tom Terrific Tuesday to you! My beloved Cardinals got back on the winning side last night, but the problem remains the same… They don’t hit very much! 12 games to go in the regulars season… And The Cards have only a 2 game lead on the Cubs… with 7 of our last 12 games VS the Cubs, it’ll be a showdown at OK Corral! I promise that today’s...

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THE WOLF STREET REPORT: Snapback Bloodletting in the Overripe Bond Market

The 10-year US Treasury yield rips. Unstoppable negative yields become stoppable (11 minutes). Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally get why – but want to support the site? You can donate “beer money.” I appreciate it immensely. Click on the beer mug to find out how: Would you like to be notified via email when WOLF STREET publishes a new article? Sign up here.

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Palace Revolt at the ECB, Legitimacy of Policy out the Window

Draghi’s desperate shenanigans thicken. ECB President Mario Draghi, who is on his way out, will, as we’re learning more and more, do anything to push his agenda and make it stick at the ECB long after he leaves, but whatever his agenda may be, it’s clearly unrelated to the European economy which has been buckling under the consequences of his agenda: the destructive weight of negative interest rates and QE. And in the process, he is destroying the legitimacy of the ECB’s policy. The...

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Peter Schiff: We Have Global Currency Weakness; They’re All Losing Value When Priced in Gold

Several currencies have been strong against the dollar over the last couple of days, but as Peter Schiff said in his podcast, the biggest gainer wasn’t a currency at all. It was real money – gold.Gold hit six-year highs on Monday and set records in a number of currencies. It continued to move upward on Tuesday. Overnight, the yellow metal pushed briefly above $1,500. Any talk you hear in the media about the strong dollar simply by measuring it against some currencies … You don’t have a...

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