U.S. Trade Gap Spikes to Six-Month High
September 10, 2009
The final paragraph of last Friday’s weekly Foreign Exchange Insights essay admonished that “in an economic upturn, the U.S. current account deficit may start to widen again.” A portent of that potential downside dollar risk factor arrived today in U.S. July trade figures showing the 16.5% larger goods and services deficit than in June despite […] More
Central Bank Watch
Bank of Canada Overnight Rate Target Staying at 0.25%
September 10, 2009
Canada’s last rate cut of 25 basis points to 0.25% was implemented on April 21st and accompanied by a conditional commitment not to raise rates before mid-2010. There have now been three policy meetings since then, and each has retained that policy stance, which Bank of Canada officials believe is the appropriate way to promote […] More
Central Bank Watch
Bank of Korea Maintains a 2% Bank Rate
September 10, 2009
South Korea’s central bank rate will stay at 2.0% as expected. A statement was released that depicts a recovery supported by both exports and domestic demand. Uncertainly persists. The statement calls policy “accommodative” and notes that CPI inflation and real estate prices are higher while credit market concerns have moderated. The Bank of Korea made […] More
Central Bank Watch
Bank of England Conveys Little New Information
September 10, 2009
The Bank of England left its interest rate at 0.5%, made no change in its asset purchase program of Gbp 175 billion, and released a very brief statement that indicated minutes of today’s meeting will be published on September 23rd. The Bank Rate has been at 0.5% since March. The prior peak of 5.75% ended […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Dollar Stronger
September 10, 2009
The U.S. dollar rose 0.8% against the Australian dollar, 0.6% relative to the Canadian dollar, 0.4% against the kiwi, and 0.2% against sterling, the yen, the euro and the Swiss franc. The South African central bank governor said the rand’s recent rally might be somewhat overdone. Stocks were mostly higher in the Pacific Rim, gaining […] More
