Weekly Economic and Financial Commentary

After the month we have had, Halloween should not scare anyone. The financial markets have been exceptionally turbulent and the economic data have been extremely disappointing. Real GDP declined at a 0.3 percent annual rate in the third quarter and it looks like a recession is underway. The current quarter… Full Article Share and Enjoy:

FX Crossroads: The Great Carry Bubble

During the last few months we have seen an historical unwinding of the so called carry trades (i.e. borrowing in low-yielding currencies and lending in high-yielding currencies). This has not least been visible from the large weakening of AUD, NZD, and ZAR, and the rally in JPY and CHF. Full Article Share and Enjoy: