Fed Mum This Time on the Dollar
June 25, 2008
In his Chatham speech earlier this month, Chairman Bernanke took the extraordinary step of digressing to comment about the dollar and warn about the association of depreciation and internal inflation. Several other verbal salvos in defense of the U.S. currency followed. But the dollar is nowhere to be found in the FOMC statement released earlier […] More
A Limited and Asymmetric Dollar Adjustment
June 25, 2008
In comparisons with lows around mid-March, the dollar has recovered on balance 3.6% against sterling, 2.9% against the euro, and 1.1% each relative to the Swiss franc and Australian dollar. The biggest dollar rebound is a jump of 13.0% against the yen. Year-to-date changes in the dollar from December 31st amount to -8.3% against the […] More
Currency Markets in the News
Where to focus: Growth or Inflation?
June 25, 2008
Each central bank must decide this question for itself. But as the following empirical evidence demonstrates, accelerating inflation is a more universal problem than deficient economic growth. On-year consumer price inflation is now running double or nearly so to levels of a year earlier. Among developed economies, CPI inflation is at 4.2% in the United […] More
Bonds and Stocks
Vital Market Signs at Selected Previous FOMC Meetings
June 25, 2008
EUR/USD USD/JPY 10Y, % DJIA Oil, % 6/30/2004 1.2173 109.44 4.63 10396 37.95 6/29/2006 1.2527 116.07 5.20 11077 73.41 8/7/2007 1.3749 118.55 4.73 13510 72.27 12/11/2007 1.4682 111.49 4.11 13645 89.78 1/30/2008 1.4792 107.31 3.70 12454 91.70 3/18/2008 1.5786 98.73 3.41 12257 107.53 4/30/2008 1.5562 104.58 3.83 12953 114.54 6/25/2008 1.5579 107.98 4.12 11807 […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad
June 25, 2008
The dollar has edged 0.1% lower against sterling, the euro, and Swissy. It is off 0.2% against the A-dollar but up 0.1% against the yen and kiwi. C-dollar is flat. Markets await the FOMC decision around 18:15 GMT today. An unchanged 2.0% fed funds rate is expected. Focus will be on statement for any sign […] More
