Currency Watch: Mid-March Report

Currency Watch

Editor's Note: Currency Watch is a TransWorld Business franchise focusing on tools to manage your businesses' bankroll internationally. Understanding global financial markets is paramount in competing in today's business world and this series will be your home for ongoing updates to stay ahead of the game. We've partnered with former pro surfer and GPS Capital Markets Account Executive Nate Carroll to guide us on our monthly world tours.

Currency Watch: Mid-March Report

Moving forward with Currency Watch, we’ve given the column a more visual focus. This month, we present you with the following infographic that provides a look ahead at Q2, a 52-week look at high/low/last, market indices, U.S. dollar index, hazard forecast, and an overall currency report year-to-date. For a look back at earlier reports from this year and last, visit our Currency Watch archive.

As anxieties over the disaster in Crimea fade, the foreign exchange market began stabilizing this week. Within the European Union, French industrial production showed marginal improvements between January and February; meanwhile, German trade presented a modest boost in export activity at the start of the year. This, in turn, directed the euro higher and placed further weight on regional equities. The Bank of Japan (BoJ) left its quantitative easing policy in place (JPY 60 -70 billion per year) during this week's meeting. Looking ahead, the BoJ forecasts inflation and industrial production to increase over the next 12 months whereas exports will contract. In China, total social financing came in at CNY 3.52 trillion between January and February, down CNY 100 trillion from the year prior. The country's 'shadow banking' off-balance sheeting lending posted sharp declines, and bond purchases rise amid more favorable liquidity conditions and lower interest rates. The U.S. Federal Reserve published data suggesting disposable incomes among households rose to a new post-recession high during the fourth quarter of 2013. Conversely, total household liabilities though higher during the same period, was mostly offset by declines in mortgage obligations.

 

About The Expert: Nathan Carroll was a professional surfer in Hawaii for over 10 years and has always been passionate about global economics and international markets. Currently, Nathan works with a variety of global action-sports brands helping them manage their global foreign currency exposures and to save money on exchange rates. For FX questions, please contact Carroll at Ncarroll@gpsfx.com