by Dixon Fung Fed Chairman Bernanke finished his appearance in front of the House Committee today. The easy money policy will continue for the next few years, very bad news for the “saver” and the future generations. U.S. monetary policy continues to encourage leverage and debt building, take from the poor and give to the [...]
by Dixon Fung Euro/USD is holding above 1.3300 since the sell-off from Draghi’s statement in early February. The currency pair is still on an upward trend. The situation in the USA is not much better than the Euro zone, and the markets have already discounted the Euro zone so much in the past years, the [...]
Friday, the Commerce Department is expected to report the deficit on international trade in goods and services was $46 billion in December, a bit lower than November owing to moderating oil prices and slower inventory build among U.S. wholesalers and retailers.
Euro crosses have been retracing higher in recent days despite the lingering uncertainties in the Euro zone. Euro/Yen and the Euro/AUD are both slightly above the weekly down trendline. It is too soon to call for a trend reversal but recent news warrant to pay attention to this development.
The Hong Kong Monetary Authority has been intervening to keep the HKD within the bottom of the established band of 7.75. In recent days, the strengthening of the RMB is causing a lot of hot money flow into the HKD. The interest rate in Hong Kong is basically at zero, which in theory would make [...]
Conditions in Europe Could Lift Unemployment Above 9 Percent The U.S. economy flirts with recession, but Federal Reserve policymakers meeting today and Wednesday have few options.
The U.S. economy is drifting toward recession, but when Federal Reserve policymakers meet next week, they will have few options. Jobs creation slipped alarmingly in April and May. Wages, which were rising modestly through the recovery, have been virtually flat for three months. An already tough labor market is getting worse.
Friday, the Commerce Department is expected to report the deficit on international trade in goods and services was $49.3 billion in April, down from $51.8 billion in March.
The economy added only 69,000 jobs in May-only about half of what is needed to keep up with natural population growth. The unemployment rate rose to 8.2 percent.
Recently, Beijing announced it would permit the yuan to rise in value as much as one percent each day. This was greeted by China watchers as an important indication Beijing would finally permit the yuan to rise against the dollar significantly enough to reduce the U.S. trade imbalance with the Middle Kingdom.