I was on the Business News Network this morning talking about my reaction to the Australian rate hike, the IMF’s report on Chinese Yuan undervaluation and my outlook for the Canadian rate decision
Click on image to access the video

Posted in 2009 canadian dollar, Australian Dollar, Bank of Canada, australian dollar forecast, china, chinese yuan No Comments »

Here is a very well written article about China’s predicament with the U.S. dollar and explains why they won’t be talking down the dollar anytime soon:
From the Weekly Standard
The Dollar’s New Best Friend
Beijing warms up to the greenback–because it has to.
by Gordon G. Chang
Last Tuesday, Brazil, Russia, India, and China–the so-called BRIC nations–met in Yekaterinburg, [...]

Posted in china, chinese yuan, forex blog 4 Comments »

Over the past few years, there has been a lot of talk about whether a new currency will replace the U.S. dollar as the global reserve currency. I have often repeated my opinion that this possibility will not become reality over the next 10 years. However, we cannot underestimate the importance of the [...]

Posted in chinese yuan 2 Comments »

According to the latest data from Treasury, foreign investors were net sellers of U.S. dollars. The Madoff scandal led to a tremendous amount of liquidation by hedge funds in the Caribbean and Luxembourg but we have our eye on China. The Asian Giant continues to be a net buyer of dollar denominated investments, albeit [...]

Posted in china, chinese yuan, forex blog 3 Comments »

**Update: As of 11:30am ET, Geithner is confirmed as Treasury Secretary
In his confirmation hearing with the Senate Finance Committee, Treasury Secretary Nominee Tim Geithner said that a “strong dollar is in America’s National Interest.” As potential Treasury Secretary, we expected Geithner to adopt the stance of his predecessors, which is to pay lip [...]

Posted in chinese yuan, forex blog 9 Comments »