Archive for March 20th, 2009

Central Bank Watch

Two South American Central Banks Cut Key Rates

March 20, 2009

The Bank of Mexico cut its key interest rate by a greater-than-expected 75 basis points to 6.75 and released a statement blaming a worsening global economic crisis.  This was the second reduction this year following one of 50 basis points in January.  The central bank rate is now only about a half-percentage point above on-year […] More

Foreign Exchange Insights and Next Week

Next Week

March 20, 2009

Next week has neither a big slate of top tier data releases nor any scheduled central bank interest rate meetings in the advanced economies. The United States reports the third and final reading of fourth-quarter GDP, existing and new home sales, personal income and consumption, durable goods orders and the U. Michigan consumer sentiment index.  […] More

Foreign Exchange Insights and Next Week

Weekly Foreign Exchange Insights: March 20th

March 20, 2009

The dollar experienced heavy selling pressure this week but has recouped some losses today in mid-day New York trading.  Price action on a Friday can be misleading especially if not associated with a data shocker that day or if significant change during the week is simply getting trimmed.  Both of these qualifying conditions apply to […] More

Central Bank Watch

A Fifth Straight Large Rate Cut in Turkey

March 20, 2009

The Central Bank of Turkey cut its key rates yesterday by 100 basis points and indicated that an easing policy bias would likely be retained for “a considerable period.”  Previous rate cuts amounted to 100 basis points in November, 125 basis points in December, 200 basis points in January and 150 basis points in February.  […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Commodity Currencies Stronger

March 20, 2009

Gold firmed another 0.4% to $962.90 per ounce and has advanced 7.2% over the ten days since March 10, buoyed partly by concerns that Fed stimulus will spark inflation. Oil eased 0.8% but remains above $50 at $51.20 per barrel.  Commodity-sensitive currencies climbed further against the greenback: kiwi up 1.0%, Australian dollar +0.8%, and Canadian […] More

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