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
New Overnight Developments Abroad - Daily Update
New Developments Abroad
June 24, 2008
The dollar is mixed, with drops of 0.6% against the Swiss franc and 0.3% each against the Aussie dollar and euro but with gains of 0.2% against the Canadian dollar and 0.1% each versus sterling and the yen. The kiwi is unchanged. Little change overnight in most sovereign bond yields. The FOMC is expected to announce […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad
June 23, 2008
The dollar rallied overnight on weak Japanese and European data. Dollar gains amount to 1.0% against the Swiss franc, 0.7% versus the euro, 0.6% against sterling, 0.5% against the yen, and 0.3% relative to the Aussie dollar. The USD dipped 0.1% against the Canadian dollar, however. Hawkish central bank talk depressed stocks in China and […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad
June 12, 2008
The dollar recorded additional solid gains of 1.1% against the Swiss franc and A-dollar, 0.9% against the euro, 0.8% versus sterling 0.7% against the yen and 0.4% relative to the C-dollar. From earlier lows this week, the greenback has recovered by 3.1% against the yen and A-dollar, 2.8% against the euro and Swiss franc, 2.5% […] More
Currency Markets in the News
First Quarter Growth Disparities
June 11, 2008
Upwardly revised Japanese national income accounts released today put the first-quarter rise in real GDP at 4.0% at a seasonally adjusted annual rate (saar) after 2.9% saar in 4Q08. Half of the expansion last quarter stemmed from net exports, and personal consumption accounted for most of the rest. Each of these components of aggregate demand […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad
June 11, 2008
The dollar gave gack 0.4% against the C-dollar, 0.3% versus the kiwi, 0.2% relative to sterling, the euro and Swiss franc, and 0.1% against the yen. The Nikkei advanced 1.2%, but stocks in China and Hong Kong fell. Dax +0.1%. Ftse is flat. Oil halted its decline and is 2.0% higher at $133.97/barrel than its […] More
Oil
Oil Spikes and Inflation
June 10, 2008
The lead editorial in Monday’s Wall Street Journal complained that “the policy mix of easy money and rebates isn’t working,” made another plea for the Fed “to protect the dollar with deeds, not words,” and warned about “a rerun of That 70s Show of higher prices but mediocre growth.” Calling 1970’s growth mediocre is misleading […] More
