Archive for August 9th, 2011

Deeper Analysis

Swissy Zeroing in on Par Against the Euro

August 9, 2011

The franc got as strong today as 1.0071 per euro.  Not only was that a record high, but it constituted a leap of a shade over 51% from this relationship’s lifetime average.  The euro, which has only been around for 11 years and seven months, has posted an average value over the whole period of […] More

Central Bank Watch

Fed Called Out on Strikes

August 9, 2011

The FOMC proved not to be up to its task.  With European and U.S. leadership having struck out already, the Fed represented the final out and failed to swing at a pitch in the strike zone.  Like the politicians, the Committee couldn’t agree.  A compromise extended the likely period for “exceptionally low interest rates” from […] More

Central Bank Watch

FOMC’s Moment of Truth

August 9, 2011

U.S. politicians struck out, failing to address America’s long-term fiscal strains.  So did EU leaders and the ECB, leaving investors unconvinced that Italy and Spain can avert the insolvency problems of smaller EU economies and fearful that the EU as a whole will lack the resources to manage such a firestorm.  The last chance to […] More

Central Bank Watch

Indonesia Reference Interest Rate Unchanged

August 9, 2011

It’s no surprise that Bank Indonesia’s key monetary policy rate will remain at 6.75% following this month’s policy meeting.  Officials have shown no urgency to tighten policy, lagging behind most other Asian central banks.  In contrast to the elevated price pressures in China and elsewhere, Indonesian CPI inflation in July was at a 14-month low […] More

New Overnight Developments Abroad - Daily Update

Continuing Market Upheaval

August 9, 2011

Investors continue to wait in vain for governments and central banks to take action and stop the turbulence.  The FOMC meets today and will release a statement at 16:15 GMT amid speculation that QE3 will be undertaken, but no press conference is scheduled.  The ECB was again buying peripheral bonds today, and Spanish and Italian […] More

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