Today’s China-induced “risk-off” trade sent emerging markets currencies into a sharp decline. As discussed before Turkey and South Africa have been hit the hardest recently and today touched fresh all-time lows.
Australia’s central bank left rates on hold yesterday as was generally expected. The RBA continues to be quite hawkish as well as relatively optimistic (perhaps too optimistic) on the nation’s economy. Given the “cash rate” is at historical lows at 2….
The US equity market has decoupled from the overall “risk-on” complex. The chart below compares S&P500 with UBS E-TRACS Fisher-Gartman Risk-On ETN (ticker symbol “ONN” – see description here).While the equity markets continued to march higher,…
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We all talk about the old RO-RO – the so called “risk-on/risk off” behavior of markets. It hasn’t always been this way. “Risk assets” became particularly correlated after the financial crisis (see 2009 discussion). Many newer market participants simply…
The Australian dollar has declined considerably from the recent highs (touching a 6-week low). But given the China slowdown and weakening domestic fundamentals in Australia, it may have room to fall further. Clearly relative to the rest of the develope…
From The Daily Reckoning…
01/05/11 Buenos Aires, Argentina – We begin today’s reckoning with a trivia question: how many möngös are there in a tugrik?
If you guessed 100, congratulations! If you didn’t know, don’t worry. The Mongolians…
