Archive for September 17th, 2010

Foreign Exchange Insights and Next Week

Next Week

September 17, 2010

Japan has holiday closures on Monday (Respect for the Aged Day) and Thursday (Autumn Equinox), creating interesting possibilities for a market test of the new intervention policy.  Central bank meetings are scheduled in the United States, Hong Kong, Norway, Mexico, Colombia and the Czech Republic.  No interest rate changes are anticipated from them, but there […] More

Foreign Exchange Insights and Next Week

Two Days After Japan’s Intervention: What Now in Foreign Exchange?

September 17, 2010

Japan’s intervention on September 15 broke several rules.  The operation was taken against the wishes of Japan’s allies in Europe, Asia and North America.  Japan has deflation, but other economies have lower-than-desired inflation and price trends that continue to slow.  All governments would like a softer exchange rate but know that is an impossibility.  So […] More

Deeper Analysis

A 30-Year-Long Trend of U.S. Disinflation

September 17, 2010

U.S. CPI inflation peaked at the cusp between the Carter and Reagan administrations some thirty years ago.  Each U.S. presidential administration since Carter has experienced less inflation than its predecessor.  The table below documents total and core non-food & energy CPI inflation in percent per annum terms for every presidency since John Kennedy.  The latest […] More

New Overnight Developments Abroad - Daily Update

Softer Dollar With Few New Data Releases

September 17, 2010

The greenback lost 1.0% and 0.9% against the New Zealand and Australian dollars.  The AUD touched a new 2010 high of USD 0.9472.  These commodity-sensitive currencies got a lift from net overnight gains of 0.8% in oil and 0.7% in gold.  The latter hit a new record high of $1284.40 per ounce, while oil is […] More

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