Currency Markets in the News
Several Rate Cut Scenarios and Lessons From Japan
October 28, 2008
Kathy Lien of GFT describes four rate cut scenarios for tomorrow: 1) a reprise of the October 8th coordinated round of Fed, ECB, and BOE rate reductions, 2) a 50-basis point ease by the Fed, 3) a 25-basis point Fed ease and 4) a 75-bp cut of the Fed funds rate. The market expects the […] More
Currency Markets in the News
In Defense of the ECB
October 28, 2008
ECB President Jean-Claude Trichet in Spain yesterday signaled a very strong likelihood, but not a certainty, for a follow-up rate reduction when the ECB meets next week. Amid the debate over the size of the coming cut, many analysts have savagely criticized ECB policymakers for running an excessively tight monetary policy and needlessly allowing the […] More
Larry's Blog
Awaiting Rate Cuts Wednesday in Norway and the United States
October 28, 2008
When the Norges Bank cut rates on October 15th for the first time since March 2004, a reduction of 50 basis points to 5.25%, hints were dropped that more monetary relief could be required, and officials made a point to underscore that a planned monetary policy meeting on October 29th would go ahead as scheduled […] More
Central Bank Watch
Icelandic Rate Hike Mandated By IMF
October 28, 2008
What a difference thirteen days make! Back on October 15th, the Central Bank slashed its benchmark rate to 12% from 15.5%, citing difficult market conditions and heavy job losses and predicting a very sharp economic contraction. In the meantime as three Icelandic banks failed and foreign exchange trading ground to a halt, the government negotiated […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Yen Lower and Stocks Mostly Higher
October 28, 2008
Today has been a day of counter-trend market movements. The U.S. dollar rose 2.2% against the yen and 0.6% against the Swiss franc but fell sharply against commodity currencies like the Australian dollar (-2.4%), New Zealand kiwi (-1.5%) and Canadian dollar (-0.6%). The USD also eased 0.3% against sterling but is unchanged against the euro. […] More
