Further Thoughts on Bernanke's Dollar Remarks
June 4, 2008
My initial belief that Bernanke’s remarks had been cleared with the Treasury was confirmed by the Wall Street Journal today, which cited a “person familiar with the matter.” That person may actually have been either Bernanke or Treasury Secretary Paulson. The citation reads like a plant from officials. On reflection, I’d wager that the impetus […] More
Currency Markets in the News
U.S/Euroland: Beyond Convergence
June 4, 2008
My 15:19 update from June 2nd addressed a convergence in U.S. and Euroland PMI-manufacturing scores, wherein their first difference (U.S. minus Ezone) was halved from -4.0 in January to -2.1 in April and halved again to -1.0 in May. Service-sector PMI readings in the two economies reported earlier today showed a decisive swing in the […] More
Currency Markets in the News
ECB Meeting Preview
June 4, 2008
The ECB will announce no change in benchmark interest rates at 11:45 GMT tomorrow. The key refinancing rate has been at 4.0% for the past twelve months. New quarterly staff forecasts of GDP growth and CPI inflation in 2008 and 2009 will be unveiled at a press conference that starts at 12:30 GMT. 2008 growth […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad
June 4, 2008
European stocks are sharply lower: Paris Cac -1.8%, Ftse -1.7% and Dax -1.4%. A lower U.S. open is indicated. Earlier, the Nikkei climbed 1.6%, but the Hang Seng fell 1.0%. European bond yields are lower, whereas the 10-year JGB yield advanced by a further 3.5 bps to 1.775%, 8 bps above Tuesday’s lowpoint of 1.695%. […] More
The Fed and the Dollar
June 4, 2008
Fed officials are not supposed to speak publicly about the dollar, so when the Chairman devotes a four-sentence, 150-word paragraph to the perils of excessive dollar depreciation, you can bet the ranch that prior approval for Bernanke’s comments was secured from the highest reaches of the Treasury Department. By law, the Treasury Secretary is responsible […] More
