New Overnight Developments Abroad - Daily Update
Greek Concerns Overshadowing FOMC Meeting
April 28, 2010
Ahead of an FOMC announcement at 18:15 GMT today, stocks tumbled further in Asia and Europe, as Euroland’s crisis keeps worsening and seemingly is likely to forestall any attempt by U.S. monetary officials to modify key language in their statement. The EU plans a summit on Greece on May 10. Strauss-Kahn, leader of the IMF, […] More
New Overnight Developments Abroad - Daily Update
Dollar and Yen Up as Investors Opt for Greater Safety
April 27, 2010
The dollar has risen 0.7% against sterling, 0.5% against the euro, 0.4% relative to the Swiss franc, 0.3% versus the kiwi and 0.2% against the Australian dollar. The Canadian dollar and yen are unchanged and up 0.3% against the greenback. Investors fret that some EU governments won’t approve a bail-out of Greece or that it […] More
Central Bank Watch
Bank of Israel: No Policy Change This Month
April 26, 2010
Contrary to the view of some analysts, the Bank of Israel’s short-term borrowing rate was not raised today by a further 25 basis points but rather left steady at 1.50%. Only Australia’s five rate increases surpass Israel’s four. Those increases, like Australia’s, were all by 25 basis points and were implemented last August, November, December […] More
Deeper Analysis
A Benign Market Environment for Economic Recovery
April 26, 2010
Yes, you read my headline correctly. This certainly has not been true about Greece, and financial markets in other peripheral members of the common currency bloc are at risk. But the statement does fit the situations pretty well for key advanced economies such as the United States, Germany, Britain, and Japan. At noontime in New […] More
Central Bank Watch
Another 25-Basis Point Hungarian Central Bank Rate Reduction
April 26, 2010
The Magyar Nemzeti Bank implemented the 14th cut of its base rate since November 2008 and tenth since July 2009. The decrease of 25 basis points to 5.25%matched expectations and was the fifth consecutive monthly drop of that size. Hungarian CPI inflation has been rising with an on-year increase in March of 5.9% after 5.7% […] More
New Overnight Developments Abroad - Daily Update
G-20 Statement a Dud… Greek Concerns Persisting
April 26, 2010
The dollar is mixed, with gains of 0.3% against the euro, Swissy, and yen but losses of 0.5% against the kiwi, 0.4% against sterling, 0.3% against the Australian dollar and 0.1% against the Canadian dollar. Greek unions continue to protest reforms, and German rhetorical foot-dragging on aid to Greece also persists. Stocks jumped 2.3% in […] More
Foreign Exchange Insights and Next Week
Next Week
April 23, 2010
A really exciting week lies ahead for economic data junkies and central bank watchers. Thursday, April 29, sees the first of Japan’s four holiday closures, that being Showa Day to honor the Emperor’s birthday, followed by Constitution Day on Monday, May3, Greenery Day on May 4 and Children’s Day on May 5. Together these off-days […] More
Foreign Exchange Insights and Next Week
Currency Market Uncertainties Involve Political Decisions
April 23, 2010
When currency market direction hinges on political decision-making, fundamental economic analysts and technical market guidance are not especially helpful because the deciders are not influenced by any of those factors, and their actions are game-changers. Since the summer of 2007, private and government analysts have emphasized the unusually high level of uncertainty surrounding baseline forecasts. […] More
New Overnight Developments Abroad - Daily Update
Greek Government Formally Requests Aid Package Be Activated
April 23, 2010
Faced with sky-high Greek interest rates, the government in Athens has asked that the EUR 45 billion aid package from the EU and IMF be activated. The process not requires consent from all 15 other members of the euro area. The big uncertainty is Germany’s response, but on the whole markets are relieved that something […] More
Deeper Analysis
Review of Bank of Canada Monetary Policy Report
April 22, 2010
The 32-page quarterly policy report from Canada’s central bank reiterates many points made two days ago in the post-meeting policy announcement. But a number of additional revelations were also imbedded in the report. Here are some of the highlights. Real Canadian GDP at an annualized rate from the prior quarter is projected to have expanded […] More
