Archive for July 25th, 2011

Central Bank Watch

Bank of Israel Key Rate Left Unchanged

July 25, 2011

Israel’s main central bank rate will stay at 3.25% for at least another month.  It was raised from a trough of 0.5% by 75 basis points in 2009, 75 bps in 2010, and 125 bps earlier this year.  The most recent change was enacted in May, a gain of 25 bps. A statement on the […] More

Deeper Analysis

How Will Markets React if the United States Government Defaults?

July 25, 2011

Nobody really knows the answer to the above question with certainty.  It’s a mystery. Governments that defaulted in the past have been punished but not with equal severity, and a U.S. default would contain many unique elements.  The United States is the world’s biggest economy.  The dollar dominates reserve asset portfolios and has no serious […] More

New Overnight Developments Abroad - Daily Update

No Progress in U.S. Debt Ceiling Talks

July 25, 2011

Risk-on trading has returned.  The Swiss franc and yen rose 1.8% and 0.5% against the dollar, which has also slipped 0.2% against the euro and 0.1% relative to the Canadian and New Zealand dollars.  The dollar has firmed 0.1% against sterling and is unchanged versus the yuan.  Gold leaped 1.2% to $1620.20 per ounce. No […] More