Deeper Analysis
Euro: An Imbalanced Marriage
February 24, 2010
To join Europe’s common currency, nations are required to meet five economic stress tests to ensure suitability. The standards are rigorous but count only for a brief moment in time. A Stability and Growth Pact, separate from the Maastricht Treaty that established the common currency, was meant to ensure that countries do not stray far […] More
Central Bank Watch
Humphrey-Hawkins Testimony: Play it Again, Ben
February 24, 2010
Formerly know as the semi-annual Humphrey-Hawkins hearings, the message today from Fed Chairman Bernanke to the House Banking Committee was little different from what he conveyed last time around on July 21. He drew a distinction between better market functionality, which is allowing the gradual reversal of unconventional liquidity provisions made to unfreeze a market […] More
Central Bank Watch
Poland and Sweden
February 24, 2010
Narodowy Bank, Poland’s central bank, left its seven-day reference rate at 3.5% as expected. The key rate has been at that level since a 25-basis point cut last June, which culminated 250 bps of easing in six moves over seven months. A statement from Policy monetary authorities unveiled new forecasts that are somewhat higher on […] More
New Overnight Developments Abroad - Daily Update
Dollar Mixed Ahead of Bernanke House Testimony
February 24, 2010
The first part of Fed Chairman Bernanke’s semi-annual Humphrey-Hawkins testimony begins at 15:00 today in the House of Representatives. He testifies tomorrow in the senate. Investors are eager to hear him field questions about the exit strategy. Bullard (SL Fed president) overnight said a lot of unwinding of quantitative easing is needed before any rise […] More
