For the third time we present our FX Top Trades for the coming year. In 2010 and 2011 our top trades delivered an average return of 3.7% and 3.5%, respectively, with a hit ratio of 80 Like the last two years the trade ideas are based on a number

Despite the challenges of the past few years, economic growth in Australia has been remarkably immune to the economic weakness that has characterized the recoveries across the rest of the developed world. In fact, Australia can claim the title of the strongest developed economy in the world over the past

Despite many challenges, we believe U.S. and global economic growth is poised to continue over the course of next year. However, businesses will need to remain cognizant of the evolving economic and policy landscape that will prove to be a game changer in 2012.

Can the euro be saved? Is it possible to stem the flight of money from the periphery into the core? With a botched German auction in mind, investors are now wondering whether it’s possible to prevent a flight out of “all things euro”? We examine the dual challenges of fiscal

Unfortunately for investors, Europe remains the bad news that won’t go away. Since our last issue of Dollars Sense where we outlined the euro zone’s latest “plan” to help address the sovereign debt crisis, contagion has only worsened, with Italian yields breaching the critical 7% level last week (see

Key proposals following the eagerly awaited EU summit helped to push €/$ briefly through 1.42, from 1.32 at the start of October, but the rally was short-lived. Political tensions reached fever-pitch as Greek PM Papandreou unexpectedly called for a referendum on the bailout package. After heightened concerns and renewed volatility,

USD slightly better supported as scope for higher yields elsewhere has diminished. EUR downside risks now look less substantial as political tensions have eased in periphery, but upside risks also diminishing as economic weakness sets in

The global economy is increasingly decoupling. It seems more and more evident that the euro area cannot escape recession, as leading indicators point to a fall in GDP in Q4 followed by a small decline in Q1. This is in sharp contrast to the US and China where growth is

Since our last quarterly outlook called ‘Maximum Uncertainty’ the world has moved from bad to worse. Growth prospects have soured and governments and central banks are everywhere pulling out the stops to save the system once again. In Europe, renewed efforts to save the European Union from its debt crisis

Though the world economy will see robust growth of 3ǔ percent this year this figure papers over a chasm between developed and emerging countries. While the developed economies led by the heavyweights (U.S. and Eurozone) are struggling to cope with the drag from deleveraging, emerging markets have hiked rates as