Foreign Exchange Insights and Next Week
Next Week
March 18, 2011
Japan, where much of this past week’s attention has been, will be shut Monday for the Vernal Equinox holiday. Central bank meetings are scheduled in South Africa, The Philippines, Turkey and the Czech Republic, and investors will also pay close attention to the British annual budget and Bank of England minutes, each of which is […] More
Foreign Exchange Insights and Next Week
Yen Intervention Just One of Several Currency Market Themes
March 18, 2011
Using many arguments, analysts like to downplay the usefulness and effectiveness of currency market intervention whenever that policy tool is employed. They say central banks lack the firepower to move a market with daily volume that exceeds $4 trillion, that intervention gives speculators an opportunity to book profits, and that only intervention that is done […] More
Central Bank Watch
Central Bank of Chile Tightens… Key Interest Rate Now 4.0%
March 18, 2011
The Central Bank of Chile raised its key overnight interest rate by 50 basis points, surprising analysts who’d expected an increase of 25 basis points. The central bank has been normalizing policy since mid-June, lifting its key rate from a starting point of 0.5% to 2.5% by September via four hikes of 50 basis points […] More
New Overnight Developments Abroad - Daily Update
Concerted Intervention by G7 Lifts Yen
March 18, 2011
G7 finance ministers and central bankers released a joint statement announcing that Japanese authorities had requested and been granted the help of concerted intervention by the United States, Canada, U.K., and ECB to join Japan in providing intervention support today. The statement expresses confidence in the “resilience of the Japanese financial sector and economy” and […] More
