Central Bank Watch
Onset of Fed Rate Tightening: Historic Examples
April 14, 2010
Fed Chairman Bernanke’s remarks before the Joint Economic Committee today sent mixed signals — on the one hand failing to say that rates will probably stay at current exceptionally low levels for an extended period but on the other dwelling on the prospect of very high unemployment and long-term unemployment continuing. I would put more […] More
Deeper Analysis
Canadian Dollar Building a Beachhead Beyond USD Parity
April 14, 2010
The Canadian dollar has strengthened a long way since the first quarter of last year amid improving fundamentals and additional support from the comments of the Bank of Canada Governor and the Finance Minister. The table below documents high-low U.S. dollar ranges against the loonie for selected periods. Canada’s currency reached a 23-month high of […] More
Central Bank Watch
Revaluation of Singapore Dollar
April 14, 2010
Authorities at the Monetary Authority of Singapore (MAS) acted before their Beijing counterparts, releasing a statement today that re-centers the currency trading band on present market Singapore dollar levels, which had been above the prior level. More importantly, the bias on that currency band will no longer be zero but rather modestly and gradually upward. […] More
Central Bank Watch
Turkish Central Bank Prepares For Exit Strategy in Tiny Steps
April 14, 2010
The Central Bank of the Republic of Turkey had a target overnight borrowing rate of 16.75% as late as October 2008. Thirteen consecutive monthly reductions later, it was 1025 basis points lower at 6.5%. The final cut of 25 bps was implemented last November. After yesterday’s monthly April meeting, monetary officials as expected kept the […] More
New Overnight Developments Abroad - Daily Update
Dollar Retreats a Bit Further as Investors Await Bernanke JEC Testimony
April 14, 2010
The dollar slid 0.5% against the Australian dollar, 0.3% versus the Canadian dollar and British pound, and 0.2% against the euro and kiwi. The yen did even worse, dropping 0.3% against the greenback, and the Swissie is unchanged against the U.S. currency. Stocks are up 1.5% in South Korea, 1.6% in Singapore, 0.9% in Australia, […] More
