Central Bank Watch
Bank of Mexico Overnight Rate Left at 4.5%
September 24, 2010
Mexico’s benchmark interest rate will remain at 4.5%, which it has been since July 2009. The decision not to raise the rate from its nearly 7-year low had been expected by analysts and was defended in a released statement by the following points: CPI inflation of 3.7% has been running below expectations. Projected growth in […] More
Foreign Exchange Insights and Next Week
Next Week
September 24, 2010
The coming week encompasses the cusp between the third and fourth quarters of 2010. Among the top tier of central banks, no interest rate policy meetings are scheduled, but monetary officials in Taiwan, Poland, Romania, Hungary, Russia and Israel are doing so. At least five FOMC officials are scheduled to speak in public, and so […] More
Foreign Exchange Insights and Next Week
A Fed Policy to Promote Dollar Depreciation
September 24, 2010
Since mid-2007, worsening global economic news had tended to support the dollar, which benefited from inflows of funds seeking safe parking. That metric broke down in the third calendar quarter, which ends next Thursday. Thursday will also mark the midpoint of the Japanese fiscal year. Many recent developments had potential to promote risk-reducing trading strategies. […] More
New Overnight Developments Abroad - Daily Update
Unsuccessful Japanese Intervention
September 24, 2010
It is believed that the Bank of Japan did a second round of forex intervention, selling yen in follow-up to the massive operation conducted on September 15. Unlike then, the central bank did not comment on or confirm that it had acted. Market participants were not surprised by the action, as the yen had crept […] More
