Archive for March 2nd, 2010

Deeper Analysis

Sterling’s Legacy of Crisis

March 2, 2010

Britain’s periodic fiscal problems,chronic large trade deficits, comparatively high inflation and the enormous offshore holdings of sterling have made that currency an object of speculative selling through the ages. Prior to the modern era of floating dollar exchange rates, the pound devalued sharply after Britain quit the gold standard in 1931 for a second time.  […] More

Central Bank Watch

Canadian Monetary Policy Left Unchanged For Now

March 2, 2010

A new statement from Bank of Canada policymakers is more noteworthy for three dovish points from earlier statements that were deleted.  They are Any mention of term Purchase and Resale Agreements.  The last scheduled one of these is set for mid-April. Any mention of “flexible” policymaking.  Beginning with the April 2009 statement, which announced the […] More

Central Bank Watch

Fourth Rate Hike in Australia, 25 Bps to 4.0%

March 2, 2010

Having been the first G-20 nation last October 6 to see a rate hike after the global financial crisis, Australia became the first economy anywhere to undergo a fourth increase.  All of them — one each in October, November and December — were by 25 basis points.  Most analysts, myself included, expected today’s move as […] More

New Overnight Developments Abroad - Daily Update

Australian Central Bank Tightens

March 2, 2010

Lessening risk aversion is reflected in firmer yen and higher stocks.  The dollar firmed 0.2% against the euro, Swiss franc and sterling even though aid for Greece from Germany and France appears to be an increasing possibility.  The dollar has fallen 0.6% against the Canadian dollar as investors await a Bank of Canada policy announcement […] More

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