Archive for May 2011

Deeper Analysis

May in Figures

May 31, 2011

Sovereign bond yields fell in many cases significantly for a second straight month, while short-term interest rate changes were minimal during May.  The Swiss franc and kiwi performed well during the month.  Against the euro, the dollar traded in a nearly ten-cent range of $1.4939 to $1.3968, closing 2.9% higher on balance.  Dollar/yen dipped briefly […] More

Central Bank Watch

A More Hawkish Bank of Canada Policy Statement but Key 1.0% Rate Retained

May 31, 2011

The Bank of Canada last raised its overnight target interest rate on September 8, 2010.  Increases of 25 basis points each had been implemented at three straight meetings In early June, mid-July and early September.  Amid slower growth, policy was then paused, but today’s meeting concluded with a stronger signal that more increases are coming.  […] More

New Overnight Developments Abroad - Daily Update

A Ton of Data Releases as May Ends

May 31, 2011

The dollar at 15:00 GMT was down 1.0% against the kiwi, 0.8% versus the loonie, 0.7% against the euro, 0.2% against the Aussie dollar and 0.1% relative to the yuan.  The greenback has risen overnight by 0.4% against the yen and 0.1% against sterling and the Swiss franc. Equities rose 2.2% in Hong Kong, 2.0% […] More

Central Bank Watch

Colombia’s Fourth Consecutive Central Bank Interest Rate Hike

May 30, 2011

The Central Bank of the Republic of Colombia intervention rate was increased by another 25 basis points, matching prior moves in February, March and April.  The rate, which now becomes 4.0%, had been at 3.0% until February 25 following eight reductions totaling 700 basis points between December 2008 and April 2010.  Inflation is now running […] More

New Overnight Developments Abroad - Daily Update

Holiday Closures in the United States and Great Britain

May 30, 2011

Markets are closed today in the United States for Memorial Day and Britain for a spring bank holiday. Currency movements have been muted without the participation of all trading centers.  The dollar at 14:15 GMT shows gains from Friday’s close of 0.2% against the euro and 0.1% versus sterling, the yen and Canadian dollar, but […] More

Central Bank Watch

No Change in Mexican Monetary Policy Interest Rate

May 29, 2011

The key Mexican interbank interest rate was left at 4.5% by Bank of Mexico policymakers, who met on Friday.  This rate was cut several times by 375 basis points in all during 2009 but has been at 4.5% since the last of those reductions in July of that year.  A statement on the Bank of […] More

Foreign Exchange Insights and Next Week

Next Week

May 28, 2011

Next week begins with market closures Monday in Britain for a spring bank holiday and the United States for Memorial Day.  Central banks in Canada and Thailand hold interest rate policy meetings.  This being the cusp between May and June, the week will feature the release of many purchasing manager surveys for manufacturing, services, and […] More

Foreign Exchange Insights and Next Week

State of the Dollar

May 27, 2011

These should be good times for the dollar.  Risk aversion has made a partial comeback as analysts have revised global growth prospects lower.  Japan is in recession, and the European Monetary Union faces an extremely uncertain future and perhaps death in its current form.  U.S. GDP is likely to expand roughly twice as rapidly during […] More

New Overnight Developments Abroad - Daily Update

Dollar Closing Week on Back Foot as G8 Leaders Meet in France

May 27, 2011

The dollar fell overnight by 1.2% against the Swiss franc, 0.9% versus the euro, 0.7% against the kiwi, 0.5% relative to the Aussie dollar, 0.2% against both the yen and sterling and 0.1% versus the Canadian dollar. Annual summer summits of the leaders of the major advanced economies used to be a huge event but […] More

New Overnight Developments Abroad - Daily Update

Dollar Fell Thursday Even as Investors Remained on Edge

May 26, 2011

On Thursday, the dollar lost 1.4% against the kiwi, 1.8% versus the Swissy, 0.8% against the yen and Aussie dollar, 0.7% relative to sterling, and 0.3% against the euro.  President Obama reportedly expressed concern about the risk of a weaker euro hurting U.S. exports. Although Japan’s Nikkei advanced 1.5%, the German Dax lost 0.8%, and […] More

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