Archive for December 30th, 2010

Deeper Analysis

Yearend Swing in the Dollar Against Euro and/or Mark

December 30, 2010

The dollar tends to fall against the dominant European currency in the second half of December but then recoup ground in the first half of January.  These tendencies have occurred too frequently to constitute a coincidence. The seasonal pattern manifested itself almost from the very beginning of floating exchange rates in 1973, although that year […] More

Foreign Exchange Insights and Next Week

Next Week

December 30, 2010

No holiday is more widely celebrated around the world than New Year’s Day.  British, Australian and Japanese markets will remain closed on Monday, and New Zealand’s observance will extend all the way to Tuesday.  Italy celebrates the Day of the Epiphany on Thursday.  Central bank decisions will be handed down by Bank Indonesia and the […] More

Central Bank Watch

Taiwan’s Monetary Policy Tightened Further

December 30, 2010

The Central Bank of the Republic of China implemented a third set of interest rate increases, each amounting to 12.5 basis points.  The prior two increases were announced June 8 and September 30th.  The new discount rate is 1.625% versus a cyclical low of 1.25% prior to June.  The collateralized lending rate is now 2.0%, […] More

New Overnight Developments Abroad - Daily Update

Swissy Ending a Strong Year on a Strong Note

December 30, 2010

Most markets will be shut tomorrow in observance of the new year. The dollar lost another 0.7% against the Swiss franc and set a new record high of CHF 0.9372.  The franc is 19.1% stronger than its end-2009 level against the euro. The Chinese yuan advanced 0.3% against the dollar, bringing its cumulative appreciation in […] More

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