Archive for December 2011

Deeper Analysis

December, 4Q11, and 2011 in Figures

December 31, 2011

In the final month of 2011, long-term interest rates fell sharply, the dollar mostly rose, and share prices were mostly mixed.  Gold prices dived 10.3%, and West Texas Intermediate crude oil prices hovered near the $100 per barrel level.  The 3-month Eurodollar-Euribor deposit rate differential shifted by 40 basis points in support of the United […] More

Foreign Exchange Insights and Next Week

Next Week

December 30, 2011

Most markets throughout the world will be closed Monday, January 2nd to observe the New Year’s holiday, and Japan stays closed on Tuesday as well.  The Czech and Romanian central banks will be holding interest rate policy meetings, and minutes from this month’s FOMC meeting are being published. Purchasing manager survey results for December will […] More

Foreign Exchange Insights and Next Week

Curtain Rising on 2012

December 30, 2011

Currency movements in the opening weeks of the year tend to be volatile and favor the dollar.  During the 26 Januarys from 1976 through 1998, the dollar advanced against the mark eighteen times between December 31 and January 15.  The average absolute move in dollar-mark was 2.1%, with a 1.1% net mean change including the […] More

New Overnight Developments Abroad - Daily Update

Slightly Softer Dollar on Final Trading Day of 2011

December 30, 2011

The dollar depreciated overnight by 0.3% against the yen and both Aussie and New Zealand dollars.  It also eased 0.1% against the Swiss franc and was fixed in China at CNY 6.3009, its softest fixing since the July 21, 2005 revaluation of the yuan.  However, the greenback edged 0.1% higher against the euro and appears […] More

Central Bank Watch

Taiwanese Monetary Policy Steady

December 29, 2011

Officials at the Central Bank of the Republic of China retained a 1.875% ten-day discount rate after the latest quarterly policy review.  Note was made of the constraining effects of Europe’s sovereign debt woes on the global and Taiwanese economies: “The slowing global economy has gradually shown its impact on Taiwan. Weaker demand from Taiwan’s […] More

New Overnight Developments Abroad - Daily Update

Dollar Strengthening on Penultimate Day of 2011

December 29, 2011

The dollar advanced 0.6% against the yen, 0.4% versus the euro and sterling, 0.3% relative to the Swissie and Australian dollar, 0.2% against the kiwi, and 0.1% versus the loonie.  The yuan is 0.1% firmer.  Stocks closed mixed in the Pacific Rim.  Share prices fell 1.2% in India, 0.7% in Hong Kong, 0.4% in Australia […] More

New Overnight Developments Abroad - Daily Update

Weaker Share Prices, Firmer Dollar amid Thin Trading

December 28, 2011

The dollar again has a 1.29 handle against the euro, rising 0.6% against the common currency.  The greenback gained 1.0% versus sterling and 0.3% against the Australian dollar but is unchanged against the loonie and yen. Share prices have fallen 0.9% in Germany, India and South Korea, 1.3% in Australia, 0.6% in Hong Kong.  The […] More

Deeper Analysis

Japanese Data Show Weaker Output and Demand with Marginal Deflation

December 27, 2011

Industrial production sank 2.6% last month, over three times more than forecast.  Output was 4.0% lower than a year earlier, and the inventory/shipments ratio dropped by 1.7%.  As in September and October, METI officials said “industrial production appears to be flat. The jobless rate remained at 4.5% in November after a 0.4 percentage point increase […] More

New Overnight Developments Abroad - Daily Update

After the Christmas Break

December 27, 2011

A few markets remain shut for Boxing Day (Britain, Australia, Hong Kong and New Zealand), but most reopened.  In thin volume, price movements have been limited. The dollar is down 0.3% against sterling, 0.2% against the yen and 0.1% versus the euro and Swissie.  The greenback faired better against commodity-sensitive currencies, edging up 0.2% relative […] More

New Overnight Developments Abroad - Daily Update

Extremely Few Markets Open for Trading and No Big Stories to Report

December 26, 2011

Most markets remain closed today, observing Christmas or Boxing Day.  The list of shut markets includes Australia, New Zealand, Fiji, Sri Lanka, Indonesia, Malaysia, Singapore, Hong Kong, Great Britain, Germany, Switzerland, The Netherlands, France, Italy, Sweden, Spain, Finland, Austria, Poland, Romania, Hungary, The Czech Republic, Bulgaria, the United States, Mexico, and Canada. In thin trading, […] More

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