'Adjustments In The Crosses' -- 09.04.08

The wicked helpful Currency Strategy newsletter from Brown Brothers Harriman landed this morning with a bit I cannot understand:

In the UK, where the BoE left rates unchanged as expected, sterling is being bolstered by upbeat comments from the London Time's Kaletsky. Adjustments in the crosses are also contributing to today's moves. The Japanese yen is steady, pulled by activity in the crosses. The Australian and Canadian dollars are firmer. Weak Australian trade data had little impact.

Anyone get that part about "adjustments in the crosses?" I know it means something -- maybe this? Later today, I'll call the wicked helpful Marc Chandler and ask him. Stay tuned.

UPDATE: Just called Chandler. He was out, but I got his colleague Win Thin, and he said . . .

Continue reading "'Adjustments In The Crosses' -- 09.04.08" »

Laura Conaway

10:37 AM ET | 09- 4-2008 | permalink | comments (0) | e-mail post

Russia And Georgia? Money Guy Says No Sweat

A column of Russian tanks leaves South Ossetian capital Tskhinvali on Aug. 21.

Kazbek Basaev/AFP/Getty Images

 

If you're watching the Russian tanks moving around in Georgia and the NATO ships sailing into the Black Sea, you're maybe thinking, hey, this has got to be bad news for the world economy.

And maybe it will turn out to be.

But if you're Marc Chandler, the global head of currency strategy at Brown Brothers Harriman, the picture's not looking so bad. "I'd say there's two impacts," he tells us. "Slim and none."

Over the past week, the Russian ruble has fallen .75% against the dollar -- no big deal, Chandler says. For a better measure, he says you should consider other currencies in the region, like the Hungarian forint and the Czech koruna. Over the same period, the forint's down 2% against the dollar, the koruna 1.3%.

That's largely because the ruble isn't well-integrated in the global economy. Compared to the dollar and the euro, Chandler says, Russia tends to stand alone. For now, he calls the conflict between Russia and Georgia a political story, not an economic one.

Laura Conaway

11:01 AM ET | 08-28-2008 | permalink | comments (0) | e-mail post