Archive for July 4th, 2013

Foreign Exchange Insights and Next Week

On Theory, Case Improves for a Rising Dollar

July 4, 2013

Not since the subprime credit crisis began six years ago next month has the contrast between the Federal Reserve’s policy intentions and those of other central banks looked as striking as now.  Led by Chairman Bernanke, a road map has been presented of possible reduced asset purchases starting as soon as September.  Bernanke claims such […] More

Central Bank Watch

ECB Introduces a New Communications Strategy with Some Forward Guidance

July 4, 2013

The three ECB rates of a zero deposit rate, a 0.5% refinancing rate, and a 1.0% marginal lending rate were left unchanged as expected.  The vote was unanimous after an extensive discussion of the merits and arguments of implementing a rate reduction now.  Officials acknowledged that monetary conditions had nonetheless tightened in certain ways since […] More

Central Bank Watch

A New Beginning at the Bank of England

July 4, 2013

The old modus operandi at Britain’s central bank was to reveal useful information immediately after a policy meeting only if interest rates and/or unconventional monetary policy measures had been changed and otherwise to defer markets to published minutes due two weeks later. Today’s statement following the first Monetary Policy Committee meeting under the governorship of […] More

New Overnight Developments Abroad - Daily Update

BOE and ECB Meetings on U.S. Independence Day

July 4, 2013

Egyptian President Mursi was pushed out by the military. U.S. markets are closed today for Independence Day, marking the 237th anniversary of the Declaration of Independence signing.  The absence of U.S. market leadership may dull market activity today despite central bank policy announcements at the Bank of England and European Central Bank. The U.S. dollar […] More

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