Deflation … LOL

14OCT2010 1248GMT

PPI just came out, the number was twice the expectation. More nails into the headless chook deflation coffin.

Latest headless chook is the ‘currency war’ meme. Another LOL. (except for the Yuan, the real battleground). Today we have continued appreciation of currencies vs the USD, left, right and centre. This from Marc Chandler (if you want a reasonable & rational view on currencies this guy is your man). My bolding:

The US dollar is getting punished; suffering steep broad based losses today. The spark that has driven the euro and sterling through their recent caps near $1.40 and $1.60 respectively, the Australian dollar, Swiss franc and Japanese yen to new highs and the Canadian dollar through parity, appears to have been initially triggered by unexpected tightening by the Monetary Authority of Singapore, which is achieved through the currency appreciation against an undisclosed basket…
Singapore has a unique and rather nuanced currency peg, but the measures taken would seem to suggest officials are embracing a stronger currency after already seeing about 8.5% currency appreciation thus far this year.

http://www.creditwritedowns.com/2010/10/dollar-gets-punished-on-policy-outlook.html

‘Currency wars’ … panic du jour …

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One Response to Deflation … LOL

  1. Pingback: Inflation … LOL | FMTrading Blog

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