Stephen Jen Quotes (8 Quotes)

The Europeans don't care as much about the yuan because the issue is trade and their deficits with the Chinese are much smaller than the U.S.'s.

They can't run out of U.S. exposure. They have Treasuries, cash, the whole yield curve, corporate bonds that they can invest in. They can even invest in paintings.

It's all a very incremental process. They want to rebalance the capital inflows and outflows. Without a balance in flows, you wouldn't want to let the exchange rate find its own place.

With the strong labor report, strong retail sales, and the strong inflation report, market expectations of a sustainable U.S. recovery have increased.

(After this week's Fed speakers) the bottom line is we will most likely know what the Fed will do before September 20. My ... hypothesis is the Fed will maintain its tightening path, uninterrupted.

Regardless of the decision on the euro, the U.K. is becoming so well integrated into the euro economy that investors are willing to invest in the pound as a proxy. That has made the pound surprisingly resilient.

People are still looking for an interest-rate cut, but it's not at all clear when that will happen. Expectations are very volatile, but the point is that the currency seems very reluctant to go down either way.

I strongly doubt that this will be the beginning of wholesale diversification from U.S. dollars.