Archive for October 20th, 2011

Foreign Exchange Insights and Next Week

Next Week

October 20, 2011

Central banks hold policy meetings next week in New Zealand, Canada, India, Sweden and Japan.  The Bank of Japan will release new growth and inflation projections after its meeting.  The United States, Euroland, and Japan all have numerous meaningful data releases.  EU leaders meet in Brussels on Sunday,  and another summit is set for Wednesday. […] More

Foreign Exchange Insights and Next Week

Current Accounts Matter

October 20, 2011

Currency movement and indeed all traded financial instruments are being dominated by event risk out of Europe, where headlines are being dictated by political decisions more than underlying economic trends.  Markets driven by politics are especially hard to play.  Even if one’s assumptions prove ultimately correct, it still remains a daunting task to get the […] More

Central Bank Watch

Turkish Central Bank Hikes Overnight Lending Rate to Support Lira

October 20, 2011

Turkish monetary authorities essentially did a mea culpa today, taking some responsibility for hurting inflation expectations and the lira with earlier policy actions. The Central Bank of the Republic of Turkey overnight lending rate was increased 350 basis points to 12.5%, while the overnight borrowing rate was left unchanged at 5.0%.  Their spread of 750 […] More

Central Bank Watch

More Dovish Statement by Bangko Sentral ng Pilipinas

October 20, 2011

The central bank in The Philippines left its key overnight borrowing rate at 4.5% and overnight lending rate at 6.5%.  Reserve requirements were kept at current levels as well.  A progressive and considerable shift from hawkish toward dovish thinking has occurred since back-to-back interest rate hikes of 25 basis points apiece on March 24 and […] More

New Overnight Developments Abroad - Daily Update

Conflicting Headlines Out of Europe Have Dollar and Stocks Both Weaker

October 20, 2011

Usually, but not so far today, the dollar and equities have moved inversely.  Headlines covering euro debt crisis talks have been all over the map. German Chancellor Merkel and French President Sarkozy still cannot agree on how to lever the EFSF bailout fund upward to more than EUR 1 billion. Sarkozy left talks abruptly without […] More

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