Introducing the FX Risk Aversion Index

In general, Risk Aversion refers to the investors' willingness to accept riskier investments. For example, when investors are willing to invest only in bonds...

BOC at center stage – Could Oil drive its decision?

The Bank of Canada announcement is center stage this week, with no change in the current 1.75% setting for the overnight rate widely expected. BOC...

US Retail activity and Inflation center stage

USDindex, Daily and Weekly US Retail activity and inflation will take center stage in this holiday-shortened week, as they could provide an indication of December's...

Who’s to blame for the US Trade Deficit?

Put simply, perhaps the most important reason for the US trade deficit is the US government itself. Allow me to elaborate: bank lending has...

How do sanctions impact the Russian economy?

The big news last week was the imposition of economic sanctions on Russia by the US. According to the US Department of State, the...

The Fundamentals of Inflation

In a recent post, we have defined what inflation is and how it affects exchange rates. In short, inflation means that the supply of...

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