US Money – Left Is Right http://left-is-right.com/ Tue, 18 May 2021 12:16:05 +0000 en-US hourly 1 https://wordpress.org/?v=5.7.2 https://left-is-right.com/wp-content/uploads/2021/05/default.png US Money – Left Is Right http://left-is-right.com/ 32 32 Bet your lowest dollar (which not many people look at the US dollar) https://left-is-right.com/bet-your-lowest-dollar-which-not-many-people-look-at-the-us-dollar/ https://left-is-right.com/bet-your-lowest-dollar-which-not-many-people-look-at-the-us-dollar/#respond Tue, 18 May 2021 10:00:00 +0000 https://left-is-right.com/bet-your-lowest-dollar-which-not-many-people-look-at-the-us-dollar/ Yes, we pulled out on Monday, but there was no sale. It dried up. There wasn’t much buying either, but the sales were minimal. The simplest way to look at this is that after the initial lower open, the upside volume was greater than the downside volume for the Nasdaq and the New York Stock […]]]>


Yes, we pulled out on Monday, but there was no sale. It dried up. There wasn’t much buying either, but the sales were minimal.

The simplest way to look at this is that after the initial lower open, the upside volume was greater than the downside volume for the Nasdaq and the New York Stock Exchange for most of the day. The NYSE ended with volume up 67% and the Nasdaq ended with 59%. The market always looks at me askance.

But other than that, it was a pretty sleepy day in the market. Oh sure, the precious metals have finally kicked in and joined the inflation trade, but let’s go back for a minute and talk about the US dollar. Everyone seems to be on the inflation trade now. Just watch Barron’s, who isn’t exactly known to be ahead of the curve, and find out what their coverage history was like last weekend:

I can’t help but think about it, because first of all, precious metals are usually the first area to move when thinking about inflation, and here they seem to be the last to finally come out of the box. . And second, who doesn’t see inflation?

Then there is the US dollar. No one even seems to be discussing it anymore, but it’s a big drop since early April, right? And now he finds himself testing the medium for the second time in a week and the fifth time this year.

The Daily Sentiment Index (DSI) for the Dollar Index is currently at 18. We all know that if the DXY breaks that support around 90 it will attract a few eyeballs. Maybe even hysteria. And probably a DSI read that approaches, if not dips, into a single digit.

As a reminder, single digit readings in the DSI are extreme. Recall that bonds hit single digits at their lowest in February, and again in March, when everyone expected much higher interest rates.

Readings over 90 are also extreme; The Nasdaq last had one at 91 on April 9. It took about a week, but eventually Nasdaq succumbed to such an extreme reading.

So if we break that 90 support zone on the dollar index and people see it, comment on it, get upset about it, and we take that DSI down to one digit or so, I would say we We would be near the end of the dollar’s decline (for now) and maybe even the commodity race (for now).

I think this is what is not on most radar screens.

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Stocks Rise, Dollar Relaxes on U.S. Rate Outlook https://left-is-right.com/stocks-rise-dollar-relaxes-on-u-s-rate-outlook/ https://left-is-right.com/stocks-rise-dollar-relaxes-on-u-s-rate-outlook/#respond Tue, 18 May 2021 08:51:00 +0000 https://left-is-right.com/stocks-rise-dollar-relaxes-on-u-s-rate-outlook/ Passers-by wearing face masks are reflected on a stock quote board outside a brokerage house, amid the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan, November 10 2020. REUTERS / Issei Kato Global stocks pushed higher on Tuesday and the dollar fell to nearly three months, betting that U.S. interest rates would stay low helped investors […]]]>


Passers-by wearing face masks are reflected on a stock quote board outside a brokerage house, amid the coronavirus disease (COVID-19) outbreak, in Tokyo, Japan, November 10 2020. REUTERS / Issei Kato

Global stocks pushed higher on Tuesday and the dollar fell to nearly three months, betting that U.S. interest rates would stay low helped investors look past the rise in COVID-19 infections in Asia.

Stocks in Europe rose in morning trading, with regional benchmark STOXX 600 (.STOXX) closing in on previous record high, up 0.5%, while Wall Street looked poised to follow with contracts S&P 500 futures gaining nearly 0.4%.

The largest MSCI index of Asia-Pacific stocks outside of Japan (.MIAPJ0000PUS) rose 1.6% as it recouped some of the losses suffered recently after new cases of the coronavirus prompted some economies to impose new antivirus restrictions.

The MSCI indicator for stocks across the world (.MIWD00000PUS) was up 0.5% at 8:10 a.m. GMT.

Market volatility has increased in recent weeks amid concerns that abundant stimulus and mounting inflationary pressures in the United States could force the Federal Reserve to reduce support to prevent the world’s largest economy from overheating.

“Typing talk is the new cone,” said Mike Kelly, multi-asset manager at PineBridge Investments.

“Structural inflation is still a long way off but the temporary supply-side bottlenecks will last until at least September. The Fed will try to work its way through and the markets will be frustrated. But the more inflation overshoots will be. are temporary, the harder it will be to do so. Avoid frayed conversations, “he added.

But comments by Fed Vice Chairman Richard Clarida on Monday, who pointed to the weakness of the April jobs report as evidence of the slowing economy, and other Fed policymakers helped reassure the markets that US monetary policy will remain easy.

“In short, the Fed’s music is still the same. It’s not yet time to hit the nail on the head, and it won’t be for a while,” said Giuseppe Sersale, fund manager at Anthilia in Milan.

Their comments came ahead of the release on Wednesday of the minutes of the Fed’s policy meeting last month, which will be closely watched for any indication of the direction of monetary policy this year.

Markets also ignored data showing Japan’s economy shrank more than expected in the first quarter as slow vaccine deployment and new COVID-19 infections affected spending.

Japan’s Nikkei (.N225) rose 2.3%, while shares of Taiwan (.TWII), which is experiencing a spike in cases, rose 4.7% on news the country is in talks with the United States for a share of the vaccine doses Washington plans to send overseas. Read more

Goldman Sachs economists see delays in the global vaccine supply as temporary and expect around half of the world’s population to be vaccinated by the end of 2021.

The dollar hit a six-year low against the Canadian dollar and swung near multi-month lows against European currencies, as Treasuries yields stagnated amid new expectations that the U.S. United will not be raising interest rates anytime soon.

The dollar traded at $ 1.2202 against the euro, its lowest since February 25. The Canadian dollar rose to a six-year high of C $ 1.2030 against the greenback, helped by higher crude oil prices.

The dollar index fell 0.4% to its lowest since February 25.

Yields on 10-year US Treasuries were little changed at 1.651%.

Spot gold rose 0.2% to $ 1,869.9 an ounce, a three-and-a-half-month high as a weaker US dollar and mounting inflationary pressure boosted the metal’s appeal in as a hedge against inflation.

The weak dollar also contributed to the rise in copper prices, while zinc prices in Shanghai climbed 6.1% to their highest level in more than 13 years due to supply issues in China. .

Oil prices have risen, with Brent and West Texas Intermediate (WTI) both rising about 0.9% on expectations of stronger fuel demand as the US and European economies reopen.

Bitcoin rose 3.5%, offsetting some of its large losses since Tesla (TSLA.O) boss Elon Musk said he would stop taking bitcoin as a payment due to environmental concerns. Ether jumped 6.7%.

Our standards: Thomson Reuters Trust Principles.



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Gold forecast 2021: XAU / USD bulls attack $ 1875- $ 76 hurdle amid weak US dollar https://left-is-right.com/gold-forecast-2021-xau-usd-bulls-attack-1875-76-hurdle-amid-weak-us-dollar/ https://left-is-right.com/gold-forecast-2021-xau-usd-bulls-attack-1875-76-hurdle-amid-weak-us-dollar/#respond Tue, 18 May 2021 08:00:00 +0000 https://left-is-right.com/gold-forecast-2021-xau-usd-bulls-attack-1875-76-hurdle-amid-weak-us-dollar/ Update: Gold prices remain at the forefront near the four-month high, up 0.20% around $ 1,871 as European traders brace for Tuesday’s bell. Gold buyers initially applauded a surge in US Treasury yields to refresh the multi-day high before recently respecting the decline in the US dollar. It should be noted, however, that the greenback […]]]>


Update: Gold prices remain at the forefront near the four-month high, up 0.20% around $ 1,871 as European traders brace for Tuesday’s bell. Gold buyers initially applauded a surge in US Treasury yields to refresh the multi-day high before recently respecting the decline in the US dollar. It should be noted, however, that the greenback bears are waiting for further indices and therefore the gold surge stops around the key resistance including the late January highs. Behind those moves could be mixed signals from the Fed and US data, as well as optimism about the coronavirus (COVID-19) vaccine. Moreover, a sense of caution ahead of Wednesday’s FOMC could also probe the gold bulls going forward.

The price of gold is off highs and slipping below $ 1,870 amid a rebound in Treasury yields across the curve, helping to cap the decline in the US dollar. The price of gold has refreshed its three-month highs to $ 1,874 in the past hour, as the greenback continues to remain undermined by expectations that the Fed will keep interest rates lower for a while. longer period, especially after the weaker US retail sales report tamed upside fears. inflation.

In addition, gold received an extra boost after Dallas Fed Chairman Robert Kaplan on Monday reiterated his view that he did not expect a rate hike before the year. next. Meanwhile, rising covid cases in Asia and escalating tensions in the Middle East keep the momentum around traditional gold as a safe haven intact.

Read: Gold is on the rise again, but can prices exceed 1900? [Video]

Lily: Gold forecast: XAU / USD bulls eye $ 1,850 after regaining control

At the time of writing this article, the price of gold is trading a little higher in Asia by around 0.13% in XAU / USD.

XAU / USD rose 1.26% to $ 1,868.50 on Monday and added a dollar to hit a new cycle high of $ 1,869.71 on a cautious start to the week for global financial markets.

Overnight, global equities came under pressure as bond yields edged higher, leading to a Goldilocks scenario for gold as markets worried about US inflation after the beating of last week’s CPI.

Meanwhile, Federal Reserve Vice Chairman Richard Clarida has said the Fed will respond to higher inflation if necessary, but he and others, including Fed Chairman Jerome Powell, have consistently insisted that now is not the time to start talking about reduction while in employment. stay deep in a hole.

We will see the minutes of the Federal Reserve policy meeting on Wednesday last month.

Investors will be on the lookout for more meat on the bone in policymakers’ prospects of an economic rebound and for clues regarding their thinking about spikes in inflation and the ongoing economic recovery.

Fund managers increased the net length

Meanwhile, analysts at TD Securities explained that fund managers ultimately increased their net length as the disappointing non-farm print catalyzed a series of algorithmic short hedges, helping prices move north of the range. of $ 1800 / oz.

At the same time, we noted that the composition of gold flows is changing, pointing out that discretionary capital could once again move towards gold, but the rise in ETF flows alongside positioning of fund managers has since reinforced this view – especially as the “fleeting” debate around inflation takes its part in mind.

Pick your poison, but the most plausible scenarios should all see gold prices eventually strengthen. ”

Gold forecast – Technical analysis

According to the previous analysis, Chart of the Week: Gold as it approaches $ 1,855, the price of gold added to Friday’s bullish close.

Preliminary analysis, daily chart

“From a daily standpoint, the bulls are taking previous highs and closed Friday’s session with a strong offer.

A run into the psychological $ 1,850 is on the charts with a -272% Fibo retracement of the previous correction to $ 1,855.

Live market, daily chart

Meanwhile, the -272% Fibo retracements of the previous correction at $ 1,855 were easily erased.

In fact, we saw a perfect touch of -61.8% Fibo at the day’s highs.

A correction is the most likely scenario at this point revealing a 38.2% Fibonacci retracement level for the next few sessions at $ 1,845.

Looking at longer term timeframes, this also takes into account the market structure on the monthly chart as follows:

While an upside pursuit is always possible, the monthly supply area could be a tough issue for the bulls to crack immediately.

Further reading:

Weekly Gold Forecast: XAU / USD Bulls Eyeing $ 1,850 After Regaining Control

Gold forecast 2021 May 18: XAU / USD to test $ 1900 amid data disappointments – TDS

The price of gold hovered around $ 1,870, prolonging its rally. The yellow metal tends to outperform when economic data weakens, and underperform when the economic outlook improves. Now that there have been many disappointments with the data, forecasters are likely to extend the projections even lower. Subsequently, Bart Melek, Head of Commodity Strategy, estimates that XAU / USD is likely to move closer to the $ 1,900 level.

Data wait cycle and gold are so happy together
“As the data begins to tread down again and the market enters the corrective part of the data cycle, yields should be held lower and the USD may be under pressure.”

Read more: XAU / USD to test $ 1900 amid data disappointments – TDS



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US dollar index drops to new lows at levels below 90.00 https://left-is-right.com/us-dollar-index-drops-to-new-lows-at-levels-below-90-00/ https://left-is-right.com/us-dollar-index-drops-to-new-lows-at-levels-below-90-00/#respond Tue, 18 May 2021 07:00:00 +0000 https://left-is-right.com/us-dollar-index-drops-to-new-lows-at-levels-below-90-00/ DXY loses even more grip and violates the 90.00 criterion. The benchmark 10 year water yields in the United States are approximately 1.65%. Housing starts and building permits are the next to appear in the dossier. The greenback, in terms of US dollar index (DXY), extends the bearish note below key support at 90.00 on […]]]>


  • DXY loses even more grip and violates the 90.00 criterion.
  • The benchmark 10 year water yields in the United States are approximately 1.65%.
  • Housing starts and building permits are the next to appear in the dossier.

The greenback, in terms of US dollar index (DXY), extends the bearish note below key support at 90.00 on Tuesday’s rally.

US dollar index at 3-month low

The index loses ground for the fourth consecutive session in the first half of the week and returns to levels last seen in late February in the sub-90.00 region.

The growing selling pressure on the dollar comes despite the yields on the key US 10-year note in a consolidation theme around the 1.65% area, although prevailing sentiment among investors continues to favor the risk complex.

Regarding the market chatter around the issue of inflation, Fed Vice Chairman R. Clarida reiterated on Monday that occasional episodes of rising inflation are seen as transitory, adding that the reopening the economy should be a gradual process. The Atlanta Fed’s R. Kaplan preferred that the tapping talks begin as soon as possible, while he also expects inflationary pressures to subside in 2022.

In the US data space, the center of the debate will be on the housing sector with the release of housing starts and building permits in April. Later in the NA session, the API report on crude oil inventories will close the case on Tuesday.

What to look for around USD

The index has completely dampened the rally seen in March and returned to levels below the psychological neighborhood of 90.00 despite the reluctance of US yields to fall. Looking at the larger scenario, the negative position on the currency appears to be prevalent among market participants. This view was exacerbated after the April payrolls, at the same time hurting sentiment surrounding the imminent full reopening of the US economy, which in turn is supported by continued strength in domestic fundamentals, the solid deployment vaccines and once again the resurgence. market chatter about an anticipated decline. The latter comes despite the Fed’s efforts to reduce this scenario, at least for the next few months.

Key events in the United States this week: Building permits, housing starts (Tuesday) – FOMC minutes (Wednesday) – Initial claims, Philly Fed index (Thursday) – Snapshot manufacturing PMI, existing home sales (Friday).

Prominent problems on the rear boiler: Biden’s plans to support infrastructure and families, worth nearly $ 4 trillion. US-Chinese trade conflict under the Biden administration. Reduction in speculation vs. economic recovery. American real interest rates relative to Europe. Could the US fiscal stimulus lead to overheating?

Relevant levels of the US dollar index

Now the index loses 0.36% to 89.86 and faces the next support at 89.68 (February 25 monthly low) followed by 89.20 (2021 low on January 6), then 88 , 94 (lowest monthly March 2018). In contrast, a breakout of 90.90 (May 11 weekly high) would open the door to 91.06 (100 day SMA) and finally 91.43 (May 5 weekly / monthly high).



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Chinese yuan companies as dollar drops against US rate outlook https://left-is-right.com/chinese-yuan-companies-as-dollar-drops-against-us-rate-outlook/ https://left-is-right.com/chinese-yuan-companies-as-dollar-drops-against-us-rate-outlook/#respond Tue, 18 May 2021 05:22:00 +0000 https://left-is-right.com/chinese-yuan-companies-as-dollar-drops-against-us-rate-outlook/ SHANGHAI, May 18 (Reuters) - China's yuan strengthened on Tuesday as investors tempered earlier expectations that the U.S. central bank could hike interest rates soon, weighing on the dollar. But traders said a robust U.S. economic recovery and strong commodities would put a floor under a falling dollar index. "There's likely to be a limit […]]]>


    SHANGHAI, May 18 (Reuters) - China's yuan strengthened on
Tuesday as investors tempered earlier expectations that the U.S.
central bank could hike interest rates soon, weighing on the
dollar.
    But traders said a robust U.S. economic recovery and strong
commodities would put a floor under a falling dollar index.
    "There's likely to be a limit to the downside for the U.S.
dollar," said a trader at a foreign bank, adding that the
greenback was biased toward rangebound fluctuation. "The yuan
also shouldn't have far to run."
    Dallas Federal Reserve President Robert Kaplan on Monday
reiterated that he does not expect interest rates to rise until
next year, fuelling a further decline in bets that inflationary
pressure could force the Fed to act sooner.
    That put a drag on the dollar, which had earlier rallied on
expectations that the Fed could move to raise rates in response
to hotter-than-expected inflation data. The global dollar index
 fell to 90.11 from the previous close of 90.184.
    Before the market open, the People's Bank of China set the
yuan's daily midpoint at 6.4357 per dollar, weaker
than the previous fix of 6.4307.
    Spot yuan opened at 6.4324 per dollar and
strengthened to 6.4278 by midday, 116 pips firmer than Monday's
late session close.
    The offshore yuan firmed to 6.428 per dollar from a
close of 6.4414.
    Ken Cheung, Asian FX strategist at Mizuho Bank, said the
yuan was also helped by China's robust growth momentum and the
country's resilience to the resurgence of COVID-19 infections in
Asia.
    Analysts and traders also say that relatively tight cash
conditions ahead of monthly tax payments due this week continue
to provide some support for China's currency.
    "How tight funds will get depends on how the central bank
offsets," analysts at Jianghai Securities said in a note. "But
even if we rely on the market to self-regulate liquidity levels,
this crunch will not last too long."
    On Tuesday, the volume-weighted average rate of the
benchmark overnight repo traded in the interbank
market was at 2.111%, just shy of more than two-week highs
touched a day earlier.
    
    The yuan market at 4:37AM GMT: 
    
    ONSHORE SPOT:
 Item               Current  Previous  Change
 PBOC midpoint      6.4357   6.4307    -0.08%
                                       
 Spot yuan          6.4278   6.4394    0.18%
                                       
 Divergence from    -0.12%             
 midpoint*                             
 Spot change YTD                       1.56%
 Spot change since 2005                28.76%
 revaluation                           
 
    Key indexes:
     
 Item            Current     Previous  Change
                                       
 Thomson         97.45       97.4      0.1
 Reuters/HKEX                          
 CNH index                             
 Dollar index    90.11       90.184    -0.1
 
    
    
*Divergence of the dollar/yuan exchange rate. Negative number
indicates that spot yuan is trading stronger than the midpoint.
The People's Bank of China (PBOC) allows the exchange rate to
rise or fall 2% from official midpoint rate it sets each
morning.

    OFFSHORE CNH MARKET   
  
 Instrument            Current   Difference
                                 from onshore
 Offshore spot yuan    6.428     0.00%
        *                        
 Offshore              6.606     -2.58%
 non-deliverable                 
 forwards                        
               **                
 
*Premium for offshore spot over onshore
**Figure reflects difference from PBOC's official midpoint,
since non-deliverable forwards are settled against the midpoint.
. 
    
    

 (Reporting by Andrew Galbraith; Additional reporting by Jindong
Zhang; Editing by Sam Holmes)
  



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Rupee opens flat, increases 7 paise to 73.15 against US dollar at start of trade https://left-is-right.com/rupee-opens-flat-increases-7-paise-to-73-15-against-us-dollar-at-start-of-trade/ https://left-is-right.com/rupee-opens-flat-increases-7-paise-to-73-15-against-us-dollar-at-start-of-trade/#respond Tue, 18 May 2021 05:16:05 +0000 https://left-is-right.com/rupee-opens-flat-increases-7-paise-to-73-15-against-us-dollar-at-start-of-trade/ This results from tracking the weakness of the US currency and positive domestic actions. The Indian rupee opened on a flat note and edged up 7 pais to 73.15 against the US dollar early in Tuesday, following the weakness in the US currency and positive domestic actions. At the interbank exchange rate, the domestic unit […]]]>


This results from tracking the weakness of the US currency and positive domestic actions.

The Indian rupee opened on a flat note and edged up 7 pais to 73.15 against the US dollar early in Tuesday, following the weakness in the US currency and positive domestic actions.

At the interbank exchange rate, the domestic unit opened at 73.18 against the dollar, then rose 7 peas to 73.15 against the US dollar.

On Monday, the rupee stood at 73.22 against the US dollar.

The rupee started flat to stronger against the dollar, following the greenback’s weakness, Reliance Securities said in a research note.

Most Asian currencies are trading more against the dollar and could provide support, the note added.

Meanwhile, the dollar index, which measures the strength of the greenback against a basket of six currencies, fell 0.06% to 90.11.

“The US dollar index struggled against the basket of currencies on Tuesday morning in Asian trading due to renewed expectations that US interest rates will remain low for an extended period,” the note from Reliance Securities said.

Global oil benchmark Brent crude futures rose 0.35% to $ 69.70 per barrel.

On the domestic stock market front, BSE Sensex traded 477.6 points or 0.96% higher to 50,058.33, while the larger NSE Nifty jumped 148.35 points or 0.99% to 15,071.50.

Foreign institutional investors were net sellers in the capital market on Monday as they unloaded shares worth ₹ 2,255.84 crore, according to exchange data.



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Money as a motivation | Columns https://left-is-right.com/money-as-a-motivation-columns/ https://left-is-right.com/money-as-a-motivation-columns/#respond Tue, 18 May 2021 05:02:26 +0000 https://left-is-right.com/money-as-a-motivation-columns/ The news is filled with stories of managers complaining about difficulty in hiring. These stories usually highlight the idea that unemployment benefits discourage people from taking a job. There are several aspects of these stories that I find incredibly frustrating. More importantly, this story is a clear scientific hypothesis. This hypothesis should be tested before […]]]>


The news is filled with stories of managers complaining about difficulty in hiring. These stories usually highlight the idea that unemployment benefits discourage people from taking a job.

There are several aspects of these stories that I find incredibly frustrating.

More importantly, this story is a clear scientific hypothesis. This hypothesis should be tested before being passed on as if it were true.

In other words, this idea could be wrong. Instead, it might be true that people who receive unemployment benefits are mostly concerned with finding their next good job. The perks may be helpful in overcoming a difficult stretch, but not something that changes their behavior.

As a side issue, I don’t understand why the manager class gets a free pass to complain about the difficulty of their job. One of the main responsibilities of managers is to hire staff. When it’s hard to hire people for low pay, our response to complaints from managers should be a little harsh. If managers don’t want to do their job of hiring people, they could always stop being managers.

Let us return to the scientific hypothesis. This idea is testable.

The recent study I found, published in 2020, is from Chicago Federal Reserve economists. They analyzed surveys carried out each year among 1,200 people on their employment. The surveys for each year between 2013 and 2019 were used by economists.

Among those interviewed, some were unemployed. For these people, the survey measured the number of hours per week that each person spends looking for a job and the number of applications they submitted. The survey also indicated whether they received unemployment benefits.

So, this survey data is a way to test the idea that is constantly mentioned in news reports. Do people who receive unemployment benefits tend to avoid looking for work?

No, quite the contrary. In other words, the perks seemed to motivate people to spend more time looking for a job.

People on unemployment benefit spend 11.1 hours per week looking for work and request 10.7 jobs per month.

People who had exhausted their benefits seemed to reduce their efforts considerably. They searched for jobs 4.7 hours per week and applied for 3.7 jobs per month.

It’s a pretty dramatic difference. In other words, people who received benefits put much more effort into finding a new job.

The authors quickly point out the limitations of this study. The main limitation is that the number of unemployed people was small enough that they could not go into details. For example, those with a college degree may behave differently from those without a degree. These data, however, cannot give us such detail.

These results appear to be broadly consistent with many other economic studies. For example, economists from the Federal Reserve of New York and the University of Pennsylvania studied French workers and came to similar conclusions. This study included 500,000 unemployed during the period 2013-2017. After some detailed mathematical calculations, the authors concluded that the unemployed increased their search for a new job by 51% in the year before benefits expired. This increase lasted for about a year after benefits expired, but then people significantly reduced their job search efforts.

This study, however, is not as relevant to any story about jobs in the United States. The study focused on people eligible for unemployment benefits for a period of one to two years. Typical unemployment benefits in the United States last up to six months.

So when managers or politicians complain about unemployment benefits, the onus is on them. The evidence seems to show that the benefits actually encourage job search. Do they have good reason to think differently?

Christer Watson, of Fort Wayne, is Visiting Assistant Professor of Physics at Purdue University in Fort Wayne. The opinions expressed are his own. He wrote this for The Journal Gazette, where his columns normally appear on the first and third Tuesday of each month.



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USD / CHF consolidates below 0.9035 against weaker US dollar https://left-is-right.com/usd-chf-consolidates-below-0-9035-against-weaker-us-dollar/ https://left-is-right.com/usd-chf-consolidates-below-0-9035-against-weaker-us-dollar/#respond Tue, 18 May 2021 05:00:00 +0000 https://left-is-right.com/usd-chf-consolidates-below-0-9035-against-weaker-us-dollar/ The USD / CHF maintains lower ground at the start of the European session. The US dollar remains at multi-month lows amid stable US Treasury yields. Risk aversion among investors is increasing demand for the safe haven. The depreciating movement of the US dollar keeps the USD / CHF pegged at the start of the […]]]>


  • The USD / CHF maintains lower ground at the start of the European session.
  • The US dollar remains at multi-month lows amid stable US Treasury yields.
  • Risk aversion among investors is increasing demand for the safe haven.

The depreciating movement of the US dollar keeps the USD / CHF pegged at the start of the European session. The pair opened higher but retreated quickly to the session lows at 0.9016, where it is now wobbling.

The US Dollar Index (DXY), which tracks the performance of the greenback against its rivals, remains depressed near multi-month lows at 90.10. The greenback has tracked yields on US Treasuries, which are trading with a modest gain at 1.64%.

The slow movement of the US dollar could be attributed to the continued reassurance from Fed officials about continuing the current monetary policy to stimulate economic growth. The mixed US economic data lowers expectations of any accommodative monetary policy reversal earlier.

The market is turning its back on the US dollar, as comments from Fed officials may mean that no immediate interest rate hike is expected.

Meanwhile, investors are looking for other, safer instruments in the face of rising coronavirus cases in Asia-Pacific. The Swiss franc, known for its ultra-safe haven appeal, is attracting the rush to fund flows. This keeps the pair grounded near the lower levels.

Investors are looking to the release of US building permit data for April and the housing market launch to find new business opportunities.

For now, the momentum around US Treasury yields continues to play with the performance of the pair.

USD / CHF Additional levels



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Sri Lankan rupee peg ‘devalued’ to 203 per US dollar, sharp discounts https://left-is-right.com/sri-lankan-rupee-peg-devalued-to-203-per-us-dollar-sharp-discounts/ https://left-is-right.com/sri-lankan-rupee-peg-devalued-to-203-per-us-dollar-sharp-discounts/#respond Tue, 18 May 2021 04:31:19 +0000 https://left-is-right.com/sri-lankan-rupee-peg-devalued-to-203-per-us-dollar-sharp-discounts/ ECONOMYNEXT – An unreliable Sri Lankan rupee peg devalued to 203 against the US dollar from 202 earlier as banks offered dollars at the new rate to customers as the currency came under pressure from cash injections . Sri Lankan banks were first barred from selling or buying dollars at 199.90 to the US dollar […]]]>


ECONOMYNEXT – An unreliable Sri Lankan rupee peg devalued to 203 against the US dollar from 202 earlier as banks offered dollars at the new rate to customers as the currency came under pressure from cash injections .

Sri Lankan banks were first barred from selling or buying dollars at 199.90 to the US dollar on May 3, with banks depositing Rs 161 billion in liquidity into the central bank’s excess liquidity window , which represents a potential pressure of about 800 million US dollars.

The non-credible peg was then devalued to 202 per US dollar.

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Despite a steady weakening of the exchange rate, there are term discounts. This week, the spot / one-year deal was struck at a discount of 17 rupees, market participants said, implying around 83 rupees for one year in dollars as domestic dollar yields rise.

Sri Lanka’s hard peg with the US dollar lost credibility in 1950 when a central bank money printing was created by a Federal Reserve physician in the style of several set up in Latin America by the agency since the days of the Great Depression.

When the peg lost its credibility with the onset of liquidity injections, which resulted in balance of payments deficits, the rupee was at 4.70 per US dollar.

Until the 1967 sterling crisis, the peg was maintained with currency and trade controls. Until then, the parity between the US dollar and the British pound was also set because the two central banks were supposed to target gold under the Bretton Woods system.

Sri Lanka’s central bank was to target gold at 2.88 grains. The US dollar was to target gold at $ 35 an ounce.

However, due to monetary policy focused on the output gap – now known as the “stimulus” – the US dollar also collapsed in 1971, leading to a system of floating exchange rates.

The Sri Lankan rupee has so far collapsed from 4.70 levels at the time of independence to 203 as long as the currency was printed (central bank credit) to maintain interest rates on the decline and increase bank loans. (Colombo / May 18/2021)



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US dollars allow NGOs to do more with less in Lebanon https://left-is-right.com/us-dollars-allow-ngos-to-do-more-with-less-in-lebanon/ https://left-is-right.com/us-dollars-allow-ngos-to-do-more-with-less-in-lebanon/#respond Tue, 18 May 2021 04:02:28 +0000 https://left-is-right.com/us-dollars-allow-ngos-to-do-more-with-less-in-lebanon/ Lebanon (MNN) – Cryptocurrency is gaining ground as the economic crisis in Lebanon deepens. Stores of all sizes have started to accept bitcoin payments more and more over the past year, Arab affairs reports. Lebanon financial crisis creates an unexpected opportunity for Christian ministries. “[Non-government organizations] can exchange dollars at a high rate. This allows […]]]>


Lebanon (MNN) – Cryptocurrency is gaining ground as the economic crisis in Lebanon deepens. Stores of all sizes have started to accept bitcoin payments more and more over the past year, Arab affairs reports.

Lebanon financial crisis creates an unexpected opportunity for Christian ministries.

“[Non-government organizations] can exchange dollars at a high rate. This allows us to do much more than before ”, explains Nuna *, Managing Director of Triumphant Mercy Lebanon.

Today, the Lebanese pound is worth less than a United States cent, the lowest US currency unit. This means that every dollar donated goes even further to help those in need.

“NGOs are funded mainly by international communities, so they are not funded inside Lebanon. This means that they can bring in “fresh” money; [in other words,] the dollar that doesn’t exist in the country, but comes from anywhere in the world, ”says Nuna.

“The value of the dollar is so high that when I use $ 1, I can make seven to eight times more than before.”

Positive exchange comes at a precious time. The needs in Lebanon are greater than ever. Send help through TM Lebanon.

(Photo courtesy of Triumphant Mercy Lebanon)

“People need more than just words; they need physical assistance. They have to pay the rent; they have to feed their children, ”says Nuna.

During a recent aid distribution, “450 people came to receive some kind of humanitarian aid”.

Pray for believers who bring help and hope in Jesus name. Ask the Lord to protect desperate people from COVID-19 infections. “There is so much need, so much desperation,” says Nuna, explaining why some Lebanese are gathering in the streets to protest.

“People say, ‘We’re going to the streets. I don’t care if I die of COVID. I just don’t want to starve. ”

* The name has changed for security reasons.

The header image is a photo of Pixabay.com



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