Foreign Exchange Insights and Next Week
Next Week
August 7, 2009
Next week begins the third year since the start of the financial crisis. As we move into mid-August, much of Europe will be on holiday. Currency trading tends to be thin. In prior years, there have been a number of key dollar turning points and milestones set in this equivalent week of August. Interest rate […] More
Foreign Exchange Insights and Next Week
Weekly Foreign Exchange Insights: August 7th
August 7, 2009
In the counter-intuitive universe of foreign exchange trading, one learns not to believe everything you hear or even everything you think. A lot of trading is done on faith, not reason, and profitable patterns get discarded only after their predictive value goes terribly awry. Collective behavior trumps independent thinking. The increased connection among currency market […] More
Central Bank Watch
Peruvian Central Bank Rate Cut By 75 Basis Points
August 7, 2009
The Central Reserve Bank of Peru sliced its benchmark lending rate by 75 basis points, not 50 bps as expected, to a five-year low of 1.25%. The cut announced late Thursday followed 100-bp reductions in July, June, May, and April and cuts of 25 bps each in March and February from a cyclical high of […] More
July Canadian Labor Market Data Mixed
August 7, 2009
Canada reported an unchanged 8.6% jobless rate last. Such had climbed to that level in June from 7.2% in January and 6.1% last September. However, 44.5K jobs were lost last month, akin to a decline of 348K in the U.S. labor market. The job destruction was distributed mostly among accommodation and food services (22.2K) and […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Waiting for July U.S. Labor Force Survey
August 7, 2009
The whisper numbers on non-farm payroll employment suggest a smaller-than-forecast drop in U.S. jobs. Release Canadian figures suggest otherwise. The dollar is narrowly mixed. Largest change is a 0.5% rise against the Aussie dollar. Greenback is also up 0.3% against sterling and 0.2% versus the Canadian dollar. It is unchanged against the euro and Swiss […] More
