Archive for October 2012

New Overnight Developments Abroad - Daily Update

PMI and IFO Data Show Darkening German Economy

October 24, 2012

The euro and Swiss franc have declined 0.3% against the dollar, which is otherwise off 0.6% against the Australian dollar, 0.4% versus sterling, 0.3% relative to the kiwi, 0.2% against the loonie and 0.1% vis-a-vis the yen. Today’s focus will be the FOMC statement.  No press conference is scheduled, so the statement will be released […] More

Larry's Blog

Fact Check: Has U.S. Employment and GDP Growth Been Abnormally Poor Under Obama?

October 23, 2012

The U.S. economy had experienced recession already for thirteen months when Barack Obama became the 44th U.S. president on January 20, 2009, and the rate of contraction was then in its most virulent stage at 8.9% in the final three months of 2008 and 5.2% in the first quarter of 2009.  With such a self-feeding […] More

Central Bank Watch

Bank of Canada Policy Unchanged as Expected

October 23, 2012

Canada’s overnight money rate target has been at 1.0% since three 25-basis point increases were implemented in June, July, and September of 2010.  A new statement released today  Reaffirms that 25-month-long interest rate level. States that the slowdown of global activity has been roughly in line with what officials were expecting. Makes only marginal modifications […] More

Central Bank Watch

Sri Lankan Monetary Policy Not Changed

October 23, 2012

Officials at the Central Bank of Sri Lanka left their repo and reverse repo rates unchanged at 7.75% and 9.75%, respectively, after this month’s policy review.  A new statement called the current stance tight, appropriate, and effective in slowing private credit expansion and containing inflation.  On-year credit growth has slipped below 30% for the first […] More

New Overnight Developments Abroad - Daily Update

Stocks Falter in Europe

October 23, 2012

Share prices have dropped 0.9% in Germany, 0.8% in Britain, 0.6% in Italy and France and 0.5% in Spain.  In the Pacific Rim earlier, equities declined by 1.3% in China, 0.8% in South Korea, 0.5% in Taiwan, 0.4% in India and 0.3% in Indonesia but rose 0.7% in Hong Kong, 0.4% in New Zealand and […] More

Central Bank Watch

Bank of Canada Preview: No Rate Change Likely

October 22, 2012

The penultimate pre-scheduled interest rate announcement of 2012 will be made at 09:00 EDT on Tuesday.  The overnight interest rate target has been at 1.0% since September 2010, but the previous four statements in April, June, July and September set an upwardly biased future guideline: To the extent that the economic expansion continues and the […] More

New Overnight Developments Abroad - Daily Update

Further Weakening of Japanese Yen

October 22, 2012

The dollar has climbed 0.6% against the yen but fallen by 0.4% versus the euro and kiwi, 0.3% against sterling, 0.2% relative to the Swiss franc and 0.1% vis-a-vis the loonie.  The Australian dollar and Chinese yuan are unchanged. The Hong Kong Monetary Authority sold local currency against the U.S. dollar, its first intervention since […] More

Foreign Exchange Insights and Next Week

Next Week

October 19, 2012

The Federal Reserve, Swedish Riksbank, Bank of Canada, Reserve Bank of New Zealand, Bankgo Sentral ng Pilipinas, and Bank of Mexico hold interest rate meetings next week.  The chiefs of the Bank of Japan, Fed, and ECB speak publicly. The final Romney-Obama debate in on Monday, and New Zealand markets are closed that day for […] More

Foreign Exchange Insights and Next Week

Continuing Choppy Forex Conditions Fed by Uncertainty

October 19, 2012

Market noise continues to drown out an sense of cumulating trend.  Key dollar pairs against the euro, yen, Swiss franc, sterling, Australian and New Zealand currencies are each trading presently less than 2.0% from their year-to-date average levels.  The same is even true of the euro-yen relationship in spite of its 18.5%-wide 111.435 to 94.075 […] More

New Overnight Developments Abroad - Daily Update

Lower Share Prices and Bond Yields but Fairly Steady Currencies

October 19, 2012

Overnight movements in the dollar this Friday were limited to gains of 0.2% against the Swiss franc and 0.1% vrsus the euro, Aussie dollar, yuan and loonie, along with dips of 0.1% relative to the yen and sterling and no change vis-a-vis the kiwi. Stock market tone was set by yesterday’s disappointing earnings reports from […] More

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