Archive for August 2012

New Overnight Developments Abroad - Daily Update

Dollar Down ahead of Bernanke’s Jackson Hole Speech

August 31, 2012

The dollar has declined by 0.8% against the euro, which hit an 8-week high of $1.2629.  The dollar also has fallen 0.8% against the Swiss franc, as well as 0.6% versus the loonie, 0.5% relative to sterling, 0.4% against the Aussie and New Zealand dollars, and even 0.3% against the yen. Investors hope to hear […] More

Central Bank Watch

Brazilian Rate Cut Yesterday Perhaps the Last of Nine

August 30, 2012

A ninth Selic rate reduction of the cycle was implemented on Wednesday but accompanied with a statement that suggests it may be the final one.  The Selic rate drops to a record low of 7.5% versus 12.5% that prevailed in August 2011.  Seven of the cuts during the past year were by 50 basis points.  […] More

New Overnight Developments Abroad - Daily Update

Spanish Delay

August 30, 2012

Following talks in Madrid between the leaders of Spain and France, Spain’s Prime Minister announced another delay in whether it would seek a bailout.  This news added to some weak data to depress share prices and commodities, but currency movements have been limited. The dollar has risen 0.3% against the Aussie and Canadian dollars, 0.2% […] More

Central Bank Watch

Norwegian Monetary Policy Remains Unchanged after Latest Executive Board Meeting

August 29, 2012

Analysts had not expected Norway’s policy interest rate of 1.5% since March to be changed today, and it wasn’t.  A statement from the Norges Bank strikes an upbeat tone and claims that Developments in both Norway and among trading partners have been broadly in line with expectations. Inflation in Norway has been slightly lower than […] More

New Overnight Developments Abroad - Daily Update

Little Change in Dollar as Draghi Defends Non-Standard Measures

August 29, 2012

The dollar is 0.2% stronger against the euro, Swissie, and yen.  The greenback also eased 0.1% versus sterling and the Canadian, Australian and New Zealand dollars.  The yuan is steady. In a published interview, ECB Pdt Draghi, who will not be attending the Jackson Hole Symposium this weekend, took on his German and Dutch critics, […] More

Central Bank Watch

First Hungarian Central Bank Rate Cut since April 2010

August 28, 2012

Hungary’s base rate was cut by officials at the Magyar Nemzeti Bank to 6.75% from 7.0%, breaking a string of 5 rate hikes in November and December 2010 and January, November and December 2011.  Officials had recently signaled a bias to ease contingent on a substantial and enduring reduction of Hungary’s risk premium and improved […] More

New Overnight Developments Abroad - Daily Update

A Mixed Bag of Overnight News

August 28, 2012

ECB President Draghi will not be attending the Jackson Hole Symposium.  He was previously scheduled to speak on Saturday.  The announcement creates more uncertainty about what the Governing Council will decide regarding support for Italian and Spanish bonds.  Investors will have to wait until the next meeting on September 6, still ten days away. Japan’s […] More

Central Bank Watch

Policy Pause Continues at the Bank of Israel

August 27, 2012

Four 25-basis point central bank interest rate reductions had been implemented in September 2011, November 2011, January 2012 and June 2012, trimming the level to 2.25% from 3.25%.  But this month as in July, Bank of Israel policymakers decided to to ease monetary policy further.  A statement released today following the monthly meeting stressed that […] More

New Overnight Developments Abroad - Daily Update

Eye on Jackson Hole, Gulf Coast, and Greek Debt

August 27, 2012

It’s been another summer Monday of waiting for events to unfold.  The dollar is marking time with no net overnight changes against the euro, yen, Swiss franc or loonie, an uptick of 0.1% against sterling and the yuan, and a 0.2% rise relative to the kiwi.  An exception to this stability is an advance of […] More

Foreign Exchange Insights and Next Week

Next Week

August 24, 2012

Investors will pay particular attention next week to continuing key bilateral meetings among EU leaders such as talks between Italian Prime Minister Monti and German Chancellor Merkel on Wednesday and to developments at the Jackson Hole central banking Symposium at which Fed Chairman Bernanke speaks on Friday and ECB President Draghi addresses on Saturday, September […] More

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