Archive for October 14th, 2010

Central Bank Watch

25-Basis Point Rate Hike in Chile

October 14, 2010

The Central Bank of Chile met market expectations, raising its benchmark interest rate by 25 basis points to 2.75%.  A statement from officials noted that inflation and expected inflation had eased and, related to this as a causal agent, the peso continues to appreciate against the dollar.  Growth was brisk in the second quarter at […] More

Central Bank Watch

Turkish Central Bank 7.0% One-Week Repo Rate Retained as Forecast

October 14, 2010

The interest rate structure at the Central Bank of the Republic of Turkey was reached in November 2009 after 1025 basis points of cuts during the preceding year.  Officials today decided not to raise the 7.0% 1-week repo rate or any of the other key rates it uses.  The decision was as expected and explained […] More

Deeper Analysis

Today’s U.S. and Canadian Data

October 14, 2010

The U.S. August trade deficit of $46.2 billion split the difference between the June and July shortfalls of $49.8 billion and $42.6 billion and so seems pretty representative of the present underlying trend.  The year-to-date deficit was $100 billion greater than in January-August 2009, a deterioration of $12.5 billion per month.  China and OPEC each […] More

Central Bank Watch

Bank of Korea Fails to Raise Key Interest Rate

October 14, 2010

For a third straight monthly meeting, the seven-day repo rate was left at 2.25%.  This decision was made in the face of an increasing risk factor from the volatility of exchange rates.  That factor is getting greater priority than rising CPI inflation, which has advanced to a 12-month pace of 3.6% compared to 2.2% a […] More

Central Bank Watch

Monetary Authority of Singapore Endorses Faster Singapore Dollar Rise

October 14, 2010

The semi-annual S$ review gave a thumbs-up to the policy of gradual trade-weighted currency appreciation and in fact steepened the potential pace of that advance.  GDP had contracted in Singapore during the third quarter but will record faster growth in 2010 than even China achieves.  The Review published today finds the slower pace of growth […] More

New Overnight Developments Abroad - Daily Update

Dollar Sinks, Touching or Breaking Several Key Thresholds

October 14, 2010

The dollar has weakened 0.8% against the yen, euro, pound and Swiss franc.  It has also lost 0.5% against the Australian dollar, 0.3% versus the Canadian dollar, and 0.2% against the Chinese renminbi.  The kiwi is steady. The dollar sank to another 15-year yen low of JPY 80.89.  The euro got as high as $1.4123, […] More

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