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Tag Archives: Euro

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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Financial World Gone Nuts: $15 Trillion Negative Yielding Debt

12 countries with negative 10-year yields. A race to hell. Every day brings new indications that the financial world is going from already nuts to even nuttier. According to Bloomberg, the total amount of bonds outstanding globally that are trading with a negative yield exceed for the first time $15 trillion. This includes government and corporate debt, and also some euro junk bonds that have joined the elite group (click to enlarge): A chart like this, of markets and central banks...

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Negative-Yielding Junk Bonds Have Arrived in Europe

NIRP is systematically rotting out basic brain functionality. Amid rampant market expectations of another and even bigger and grander round of QE by the ECB, which would also be buying corporate bonds and old bicycles, the total amount of bonds with negative yields has risen to nearly $13 trillion, according to Bank of America Merrill Lynch. The perversion of negative interest rates imposed by central banks such as the ECB, the Bank of Japan, the Swiss National Bank and a slew of...

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And the US Dollar’s Status as Global Reserve Currency?

Renminbi gains, but in painfully slow micro-steps. Dollar & euro combined share slides. How long can the US dollar maintain its status as the global reserve currency and as global hegemon?  That’s a question that comes up a lot, particularly among people who’d like to see it knocked off its perch. So here we go. Total global foreign exchange reserves in all currencies ticked up to $11.4 trillion in the first quarter 2019, according to the IMF’s just released COFER data....

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