Archive for September 3rd, 2010

Foreign Exchange Insights and Next Week

Next Week

September 3, 2010

The week to September 10 kicks off with Labor Day holiday closures on Monday in both the United States and Canada.  Brazil and numerous Asian countries also celebrate holidays during the week.  The week after the U.S. holiday starts the third and final currency market season of the calendar year. Central bank meetings are scheduled […] More

Foreign Exchange Insights and Next Week

Do Flexible Exchange Rates Serve the Public Good?

September 3, 2010

While I was a graduate student in economics specializing in international trade and finance, a hot debate at the cusp between the 1960s and 1970s was whether the world and U.S. economies would be better served by the then-existing monetary system framed around fixed dollar parities or one in which market forces of supply and […] More

Deeper Analysis

Worst U.S. Services Activity Since January, Poorest Compared to Euro Area in Nine Months

September 3, 2010

The Institute of Supply management reported a 2.8-point decline last month in the non-manufacturing U.S. purchasing managers index.  At 51.5, such was two points plus weaker than forecast, the lowest reading since January, and below the twelve-month average score of 52.3.  Sub-components of the survey like production (54.4) and orders (52.4) revealed slower rates of […] More

Central Bank Watch

Reserve Requirements Hiked Three Percentage Points to 8% in Indonesia

September 3, 2010

Bank Indonesia released a statement after surprising analysts with an increase to 8% from 5% in in reserve requirements, which could herald interest rate tightening before much more time elapses.  The benchmark rate was not changed yet, however, and will remain at 6.5% where it’s been since a 25-basis point cut in August 2009.  That […] More

New Overnight Developments Abroad - Daily Update

Little Change in the Dollar Ahead of U.S. Jobs Report

September 3, 2010

The dollar edged up 0.2% against the yen and the Swiss franc and by 0.1% versus the Australian and Canadian dollars.  The dollar fell 0.3% against the kiwi and by 0.1% against the euro.  The greenback is unchanged against the pound and yuan.  Market consensus calls for U.S. non-farm payrolls to drop around 100K, but […] More

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