Bonds and Stocks
Trade-Weighted Dollar on Fire
October 21, 2008
The trade-weighted dollar index that I monitor for analytical purposes is one calculated by the Fed against other major floating currencies. It is the second one of three seen in the memo section of the hyper-linked table. The dollar at the end of today is 3.4% stronger than a week ago, 5.0% stronger than two […] More
Some Disappointment That the Bank of Canada Didn't Cut Rates More Sharply
October 21, 2008
Julian Beltrame of The Canadian Press has encountered similar reactions to my own from people he contacted that the Bank of Canada’s rate reduction of only 25 basis points appears smaller than the central bank’s own statement warrants. As I noted in an earlier post today, the likeliest reasons why a bigger cut was not […] More
Central Bank Watch
New Zealand's Turn
October 21, 2008
The Bank of Canada eased monetary policy earlier today. Tomorrow at 20:00 GMT (09:00 on Thursday locally), the Reserve Bank of New Zealand will reduce its cash rate for the third time within three months. Markets look for a 100-bp cut, although a reduction of 75 basis points is possible. Until July 24th, a cash […] More
Central Bank Watch
Bank of Canada Selects the More Cautious Option
October 21, 2008
The Bank of Canada rate target was cut for the second time this month but by 25 basis points this time. Some analysts, including myself, were anticipating a bolder 50-bp cut to match the action taken on October 8th. The new overnight target of 2.25% has a 75-bp premium relative to the Federal funds rate, […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Interbank Market Improved a Little Further
October 21, 2008
The dollar touched new 2008 highs against the euro of $1.3210 and Swiss franc of 1.1547/Chf. The dollar rose 2.0% against the Australian dollar, 1.3% against the New Zealand kiwi, 0.8% against both the euro and sterling, 0.6% relative to the Canadian dollar and 0.2% versus the Swissy. The buck fell 0.6% against the yen. […] More
