Archive for October 8th, 2010

Foreign Exchange Insights and Next Week

Next Week

October 8, 2010

The week ahead begins with a meeting in Washington of G-7 central bank chiefs and finance ministers, a group which has not released a formal statement in over a year.  There are holiday closures Monday in the United States for Columbus Day, Canada for Thanksgiving Day and Japan for Health-Sports Day.  FOMC minutes due Tuesday […] More

Foreign Exchange Insights and Next Week

Dollar Winning the Currency Wars

October 8, 2010

A strong correlation exists between currency expectations and recent forex movements.  Market players like to run in herds.  The dollar at 15:15 GMT today had recorded across-the-board losses for the first week of October.  Declines over the past four weeks had built up to 8.8% against the euro, 5.9% relative to the Australian dollar, 5.7% […] More

Central Bank Watch

Peruvian Monetary Policy Paused

October 8, 2010

To the surprise of almost all the pundits, the Central Reserve Bank of Peru left its monetary policy reference rate at 3.0% instead of implementing a 25-50 basis point further increase.  Five consecutive increases had been implemented at the five previous monthly meetings, totaling 175 basis points and reversing exactly 525 basis points of reductions […] More

Deeper Analysis

U.S. and Canadian Labor Markets Lost Momentum Last Quarter

October 8, 2010

U.S. non-farm payroll jobs slumped 218K in the third quarter following a 570K advance in the second quarter.  Canada’s labor market, where employment had shot up 226.6K  in the second quarter, added only 19.9K positions in 3Q.  In September alone, both economies lost jobs, Canada for the second time in three months and the United […] More

New Overnight Developments Abroad - Daily Update

Softer Commodity-Sensitive Currencies and Equities Ahead of U.S. Labor Survey

October 8, 2010

The dollar rose 1.0% and 0.7% against the Australian and New Zealand dollars and shows gains of 0.3% against the euro and 0.2% versus the loonie.  The dollar is steady against the yen and sterling but down by 0.3% against the yuan after Chinese markets opened for the first time this week.  U.S. Treasury markets […] More

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