Archive for November 2013

New Overnight Developments Abroad - Daily Update

Awaiting U.S. Retail Sales, Consumer Price Data, and FOMC Minutes

November 20, 2013

After predictably dovish remarks from Ben Bernanke, the soon-to-be ex-Fed Chairman, the dollar has ticked down 0.2% against the euro, Swiss franc, Australian dollar and sterling.  The yen is unchanged following report of another large trade deficit, and the kiwi has risen 0.2% after higher-than-expected New Zealand producer price figures.  The yuan is also unchanged […] More

Central Bank Watch

Another Chilean Rate Cut

November 19, 2013

The Central Bank of Chile’s policy interest rate was reduced 25 basis points to 4.5%.  Similarly sized cuts were implemented after the prior meeting on October 17 and in January 2012.  Chile has experienced inflation below the 2-4% target, falling expected inflation, and slower growth in domestic demand.  “The Board reiterates its commitment to conduct […] More

Central Bank Watch

Central Bank of the Republic of Turkey: No Rate Change but….

November 19, 2013

Key Turkish interest rates — a 4.5% one-week repo rate, a 7.75% overnight lending rate and a 3.5% overnight borrowing rate — were left unchanged by the Monetary Policy Committee.  However, a decision was reached to eliminate monthly repo rates in hopes of reducing selling pressure on the lira, which has boosted inflation. Inflation indicators […] More

New Overnight Developments Abroad - Daily Update

Doubting the Recent Strength of Equities

November 19, 2013

Share prices have dropped back 0.9% in Spain, 0.7% in Italy, 1.0% in France, 0.5% in Britain and 0.4% in Germany.  Equities also lost 1.2% in the Philippines, 0.7% in China, 0.6% in New Zealand and Australia, and 0.3% in Japan and Singapore. The U.S. dollar advanced 0.5% against the Australian dollar.  Minutes from the […] More

New Overnight Developments Abroad - Daily Update

Chinese Mojo

November 18, 2013

The initial disappointment of investors regarding the Third Chinese Plenum has given way to euphoric relief as details of proposed reforms filtered out subsequently.  A 3.3% advance in Chinese share prices was almost matched by gains of 2.7% in Hong Kong’s Hang Seng index and 2.2% in India’s Sensex.  Share prices rose 1.3% in India […] More

Foreign Exchange Insights and Next Week

Next Week

November 15, 2013

Central bank interest rate policy meetings are scheduled next week in Japan, Turkey, South Africa, Chile and Israel.  Minutes from the most recent policy meetings of the Bank of England, Reserve Bank of Australia and FOMC will be released.  Governor Kuroda of the BOJ will hold a press conference following that bank’s policy meeting, and […] More

New Overnight Developments Abroad - Daily Update

Soaking in Yellen Testimony and Awaiting U.S. Industrial Production

November 15, 2013

The dollar shows no overnight net change against the yuan, loonie and sterling.  The greenback is up 0.2% versus the Swiss franc and 0.1% relative to the euro but has fallen by 0.2% against the Australian and New Zealand dollars. Janet Yellen’s confirmation hearing yesterday affirmed the likelihood of the existing pro-growth policy continuing.  The […] More

Foreign Exchange Insights and Next Week

Defining Moments

November 14, 2013

The approaching 50th anniversary of former President Kennedy’s death offers an appropriate juncture to reflect on how well-prepared are foreign exchange markets to handle a truly transformative surprise.  Global GDP growth appears to be improving but from an extremely weak and fragile state.  Improvement is not widely felt by populations.  These are not satisfying times.  […] More

Central Bank Watch

Bank of Korean Base Rate Left at 2.5%

November 14, 2013

In a statement explaining today’s sixth straight monthly policy meeting decision not to change monetary policy, officials reaffirmed that South Korea’s output gap will remain negative for a considerable time going forward and The negative output gap is one of a number of factors that will keep inflation low for the time being. Exports have […] More

New Overnight Developments Abroad - Daily Update

A Mixed Bag of GDP Figures and Leaked Yellen Testimony

November 14, 2013

Japanese GDP expanded 1.9% at an annualized rate between 2Q and 3Q, down from 3.8% in the second quarter but a shade stronger than expected.  The GDP price deflator was 0.3% lower than a year earlier.  On-year GDP growth more than doubled to 2.7%.  Among components of demand, consumption rose 0.4%, nonresidential investment climbed 0.7%, […] More

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