Forex Gump

We’ve been hearing a lot of buzz recently on the possibility of deflation in the US. Because of this, I’ve decided to look more into this issue and discuss its possible effects on the US economy, and of course, the US dollar.

Just this weekend, talks between Hungary and the IMF and EU broke down. Authorities from the IMF believe that Hungary was not doing enough to meet its budget deficit target and decided to postpone their assessment of Hungary’s loan program. Uh oh, is that Mr. Contagion Fears knockin’ on the euro’s door?

The CPI is a measure of the change over time in the prices paid by consumers for a market basket of goods and services.

Since PPI is being released tomorrow, I thought I would talk about it. I was in a doodling mode so I created some pictures and graphs to help you from falling asleep since the subject of PPI is a natural sleeping pill.

The US retail sales comes out tomorrow and it’s a biggie. It’s important to know what the report is all about. Consumer spending makes up a whooping 70% of all US economic activity. Retail sales account for one-third of that. If consumers keep spending, it’s a sign of overall economic growth.

Like any business, a country has to keep track of its inflow and outflow of goods, services, and payments. At the end of any given period, every country has to look at its own “bottom line” and add up all international trade and investments.

Still wondering why the Swiss franc just keeps on raking ’em gains like there’s no tomorrow? Well, wonder no more! In this edition of Piponomics, Forex Gump’s going to give you three reasons why everybody loves the franc.

Let’s shift our focus to a nation that’s recently been showing a lot of promise – Canada. Tomorrow, when the clock strikes 11:00 am GMT, the country will release its labor market report.

As expected, our buddies over at the RBA have decided to keep interest rates steady. With this being the second month in a row that the central bank has hit the pause button, I am left wondering when exactly should the RBA resume hiking rates?

Could unemployment be the kryptonite that will conquer the world super power? Judging by Friday’s data releases, it just might be!