Archive for January 28th, 2009

Central Bank Watch

New Zealand Cash Rate Slashed by Another 150 Basis Points

January 28, 2009

In less than ten weeks, the cash rate of the Reserve Bank of New Zealand has dropped from 7.5% to 3.5% with drops of 100 basis points on November 23rd and of 150 basis points each on December 4th and today.  One needs to look no further than that to grasp how worried monetary officials […] More

Lacker Dissents From FOMC Majority

January 28, 2009

The FOMC statement released today was not much different from December’s communique. There was no change in the Fed funds target, which is already pinned in a range centered on 0.125%. Some officials in the U.S., as at the ECB and Bank of Japan, fear that going all the way to a point target of […] More

Vital Market Signs When FOMC Met Previously

January 28, 2009

  EUR/$ $/JPY 10Y, % DJIA Oil, $ 06/30/04 1.2173 109.44 4.63 10396 37.95 06/30/05 1.2090 110.89 3.96 10370 57.00 06/29/06 1.2527 116.07 5.20 11077 73.41 06/28/07 1.3452 123.17 5.10 13456 69.82 08/07/07 1.3749 118.55 4.73 13510 72.27 09/18/07 1.3888 115.75 4.51 13475 81.42 10/31/07 1.4458 115.28 4.42 13873 93.59 12/11/07 1.4682 111.49 4.11 13645 […] More

Currency Markets in the News

Worst Global Economy Since WW2

January 28, 2009

New forecasts from the IMF call for world growth of only 0.5% in 2009, down from 3.4% in 2008 and 5.2% in 2007.  Growth has never been as low as a half percent in a calendar year since the Second World War.  0.5% represents a revision from 2.2% projected by the IMF in November.  The […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Softer Dollar Ahead of FOMC Announcement

January 28, 2009

The dollar relinquished another 2.2% against the pound sterling but also dropped 0.9% against the Australian dollar, 0.7% against the Canadian dollar, and 0.6% relative to the euro. The yen lost 0.4%. The new U.S. government is reportedly moving closer to buying up a lot of bad bank assets. The FOMC announcement comes at 19:15 […] More

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