Archive for February 19th, 2009

Central Bank Watch

Turkish Rate Cut of 150 Basis Points Exceeds Forecasts With More To Come

February 19, 2009

The Central Bank of the Republic of Turkey reduced its benchmark lending and deposit rates by 150 basis points each to 14.0% and 11.5%.  This was the fifth straight month with a reduction and brings the cumulative decline to 525 basis points from August-October peaks of 20.25% and 16.25%, respectively. A statement released by monetary […] More

Currency Markets in the News

Will The European Monetary Union Lose Members?

February 19, 2009

This question to Currency Thoughts from Bgin2end is sure timely.  George Soros addresses one element of the issue in an Op-Ed piece of today’s Financial Times.  He touts some big benefits of having the eurozone but argues that the present crisis has revealed a flaw in its construction, the lack of a bloc-wide government bond […] More

New Overnight Developments Abroad - Daily Update

More Awful Economic Data Announcements

February 19, 2009

As noted earlier in my overnight news summary, markets had been more hopeful in mood, impressed by the barrage of policy support including a multi-billion U.S. plan of support for mortgage holders in danger of getting foreclosed.  But the drumbeat of poor data continued such as news of a 26.5% on-year plunge in Thai exports.  […] More

Central Bank Watch

Bank of Japan Does No More Than Expected

February 19, 2009

By a significant margin, Japan’s economy is contracting more rapidly than other advanced economies, and it is the one in greatest danger of deflation, having been there for much of this decade and the late 1990’s and now showing on-year declines in some key price indices.  The Japanese output gap, which measures how far below […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Firmer Euro

February 19, 2009

The dollar fell 1.0% against the euro and sterling. It also lost 1.6% against the Australian dollar, 1.2% against the kiwi, and 0.8% against the Canadian dollar. The greenback dipped only 0.2% against the yen and 0.1% relative to the Swiss franc. East European official reassurances have reduced anxiety about regional currencies and debt.  Poland […] More

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