Archive for February 19th, 2010

Central Bank Watch

Key Mexican Interest Rate Left at 4.5% as Anticipated

February 19, 2010

The Bank of Mexico’s key interbank interest rate has been 4.5% since last July 17th and will remain there at least another month in spite of a jump in CPI inflation last month to 4.5% and related to some tax increases.  A statement released by bank officials saw no evidence yet of second-order inflationary effects […] More

Foreign Exchange Insights and Next Week

Next Week

February 19, 2010

Chairman Bernanke with a fresh four-year term will be back at Congress doing his semiannual rundown on monetary policy.  It’s funny how the timing of Fed moves make so much more sense after the fact.  The Fed did a good job of preparing the public for a possible discount rate hike in the not-distant future, […] More

Foreign Exchange Insights and Next Week

The Dollar Express

February 19, 2010

The dollar is coming off yet another solid week.  While attention continued to be riveted on the high debt and deficits of Euroland’s peripheral countries like Greece, Spain, Portugal and Ireland, the dollar scored its largest advances of the week against the yen, a new development, and sterling, which is an old story. The yen […] More

New Overnight Developments Abroad - Daily Update

Dollar Strengthened in Wake of Late Wednesday’s Surprise Fed Discount Rate Hike

February 19, 2010

At 19:30 GMT yesterday after U.S. markets had closed, the Fed announced a 25-basis point increase in its discount rate to 0.75%.  The FOMC minutes this week had served notice that such a move could occur soon and would not be meant as a signal of tightening monetary policy but rather another part of an […] More

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