Foreign Exchange Insights and Next Week
Opening Currency Market Act of 2012
January 5, 2012
The dollar started 2012 on a high note just as it did in the first week of three of the past five years. Between yearend and January 7, the dollar appreciated against the euro by 3.6% in 2011, 2.5% in 2009 and 1.4% in 2007. It was unchanged in the first week of 2010 and […] More
Deeper Analysis
Service-Sector PMI Spread Narrowed in December But U.S. Retained a Large Composite Advantage
January 5, 2012
The U.S. Minus Euroland service sector purchasing manager differential fell to a four-month low of +3.8 points. Such had crested at 6.5 points in October. As in the case of manufacturing, the U.S. index was above 50, signifying a positive trend in activity but at a less rapid pace than in October or November. In […] More
Central Bank Watch
A Second Romanian Interest Rate Cut
January 5, 2012
The National Bank of Romania Board members have sliced the monetary policy reference rate to 5.75% from 6.0% but left reserve requirements unchanged. This second reduction following a similar 25-basis point drop on November 2, 2011 has been justified as a prudent response to lower CPI inflation and negative implications for growth and financial market […] More
New Overnight Developments Abroad - Daily Update
Relentless Concern about Europe
January 5, 2012
Risk aversion is persisting. It can be seen in an 0.8% overnight drop of the euro against the dollar. The euro traded below its 2011 low. The dollar also gained 0.8% against the Swissie and kiwi, 1.1% versus the Australian dollar, and 0.6% vis-a-vis the loonie and sterling. The greenback even edged 0.1% higher against […] More
