New Overnight Developments Abroad - Daily Update
Across-the-Board Declines in the Dollar
April 25, 2013
The dollar has fallen 1.1% against sterling, 0.8% versus the kiwi, 0.5% relative to the yen, 0.4% against the euro and Australian dollar, 0.3% vis-a-vis the loonie and Swiss franc and 0.1% against the Chinese yuan. Holiday closures today are in Australia and New Zealand for Anzac Day, Italy for Liberation Day, and Portugal for […] More
New Overnight Developments Abroad - Daily Update
Kiwi Stronger
April 24, 2013
The New Zealand dollar, known as the kiwi, got a lift from the central bank policy statement. Although the Official Cash Rate was left at 2.5% and the monetary policy outlook predicting the OCR will likely remain at that low level all year was also not changed, investors reacted to an upgraded assessment of New […] More
Central Bank Watch
New Zealand Official Cash Rate Left at 2.5%
April 23, 2013
It’s been more than two years since the last New Zealand central bank interest rate change, a 50-basis point cut in March 2011. Today’s policy statement Retains the previous monetary policy outlook, namely that the Official Cash Rate will likely stay at 2.5% through end-2013. Expresses balanced concerns, first that the housing market is too […] More
Central Bank Watch
Ninth Straight Central Bank Interest Rate Cut in Hungary
April 23, 2013
With political encouragement and newly installed leadership, the two-week repo rate of Magyar Nemzeti Bank was reduced by another 25 basis points to 4.75%. It had been cut by that amount at the eight prior monthly policy meetings as well from a peak of 7.0% prevailing at the start of August 2012. Officials justify a […] More
New Overnight Developments Abroad - Daily Update
Chinese and Ezone Flash PMI Surveys Highlight Weakness
April 23, 2013
HSBC reported a 1.1 decline in China’s manufacturing purchasing managers index. At 50.5 in April, the second quarter began with just marginal growth and reversed an encouraging improvement in March. Preliminary readings on the German, French and Ezone composite, manufacturing and service-sector PMI surveys also were released overnight, and they suggest that the region’s downturn […] More
Larry's Blog
Four Concerns
April 22, 2013
The Mounting Reliance of Developed Economies on Intelligence-Intensive Growth. A developing economy can accelerate its rate of growth by combining under-employed labor with imported technologies that boost their productivity (the amount of product or service that can be made in a finite period of time worked). More workers using the same tools produce more output. […] More
New Overnight Developments Abroad - Daily Update
Weaker Yen and Stronger Share Prices after G20 Meeting
April 22, 2013
G20 central bank governors and finance ministers gave rubber-stamp approval to Japanese stimulus policies. See my review. Japan’s Prime Minister Aso said as much. The yen touched overnight lows of 99.90 per dollar and 130.70 per euro. Share prices in the Pacific Rim rose by 1.9% in Japan, 2.4% in the Philippines, 1.0% in South […] More
Deeper Analysis
Statement of G20 Finance Ministers and Central Bank Chiefs Comments Favorably on Japan
April 21, 2013
On the sidelines of the IMF/World Bank meetings in Washington, financial leaders of the Group of Twenty met April 18-19 and released a statement that gives Japan not even an amber light but rather a green light to pursue its new policy program even if such depresses the yen further. Using unmodified language, the statement […] More
Foreign Exchange Insights and Next Week
Next Week
April 19, 2013
Central bank policy meetings are scheduled next week in Mexico, Hungary, Israel, New Zealand, the Philippines and, most importantly, Japan, where a semi-annual Outlook for Economic Activity and Prices will be unveiled and explained at a press conference by Governor Kuroda. This will be the second BOJ meeting of April. Coming into the month, it […] More
New Overnight Developments Abroad - Daily Update
Market Tone Set by Weaker Yen
April 19, 2013
Japan’s delegation got its spin of the Group of Twenty talks out first. Finance Minister Aso said no objection was made to Japan’s reflationary policies, which are meant to end deflation. It’s not a policy to devalue the yen, he said. Bank of Japan Governor Kuroda said much the same, and Prime Minister Abe gave […] More
