Russian Aggression and The Dollar
August 13, 2008
Extremely high policy-induced U.S. interest rates, a ballooning Washington deficit and a sharp break in America’s inflation fever were the main dollar supports during President Reagan’s first term. An important background factor, however, was a big anxiety premium from increasingly strained East-West and North-South relations. An image of U.S. military ineptitude and foreign policy appeasement […] More
Currency Markets in the News
Euroland Industrial Production Sank 2.5% saar Last Quarter
August 13, 2008
Forecasts centered on a 0.8% decline of Euroland GDP at an annualized rate might be too conservative. June industrial production released today revealed a 2.5% drop last quarter and put the level of production at the end of the quarter already down 0.6% (not annualized) from the 2Q mean. For June alone, industrial output was […] More
Currency Markets in the News
Japanese 2Q GDP Dissected: Bad All Over
August 13, 2008
Real GDP plunged 2.4% at a seasonally adjusted annual rate (saar) last quarter, the largest decline since 3Q01, when the 9-11 attacks occurred. Although such followed a solid 3.2% increase in the first quarter, the occurrence of negative growth should not be dismissed as an offset to earlier strength. Economic growth in 1Q08 and 4Q07 […] More
Central Bank Watch
Norwegian and British Central Bank Rates on Hold for Now
August 13, 2008
Earlier today, the Norges Bank announced a decision to leave its key policy rate at 5.75%, while the Bank of England quarterly inflation report was released, projecting a sharp near-term rise of CPI inflation to 4.8% but sub-target inflation by 2H10 if the British Bank Rate were to stay at its current level of 5.0%. […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad: Japanese Real GDP Contracted 2.4% SAAR in 2Q08
August 13, 2008
The dollar is higher except for a 0.2% dip against the yen. Dollar gains overnight amount to 1.0% against sterling to a 21-month high, 0.6% versus the Australian dollar and Canadian dollar, 0.4% against the Swiss franc, and 0.3% versus the euro. Equities fell. Nikkei -2.1%. Hang Seng index -1.6%. Australia -2.0%. India -0.8%. South […] More
