Archive for May 7th, 2014

Foreign Exchange Insights and Next Week

Is the Euro Headed for a Big Correction?

May 7, 2014

It’s fitting on this eve prior to the May meeting of the European Central Bank Governing Council to examine the euro’s near-term susceptibility to a substantial turnaround.  Asked a month ago about how a strong euro might affect future policy decisions, ECB President Draghi had this to say: The exchange rate is very important for […] More

Central Bank Watch

National Bank of Poland

May 7, 2014

Officials at Narodowy Bank retained a 2.5% seven-day repo rate, projecting gradual economic recovery with continuing subdued inflationary pressure.  On-year CPI inflation is now 0.7%, less than a third of the target.  “Therefore, the Council decided to keep NBP interest rates unchanged. The Council maintains its assessment that NBP interest rates should be kept unchanged […] More

Central Bank Watch

Czech National Bank Reaffirms Elements of Accommodative Monetary Policy

May 7, 2014

The two-week Czech repo rate has been at 0.05% since November 2012.  One year later, a cap on koruna appreciation at 27 per euro was added to the policy arsenal to prevent monetary conditions from tightening further via a strengthening currency without any offsetting cut in short-term interest rates.  Today’s statement from the central bank […] More

New Overnight Developments Abroad - Daily Update

Persistent Fears about Ukraine Crisis Weaken Equities

May 7, 2014

Investors are tired of the America’s speak-loudly-but-carry-a-small-stick approach to the Ukraine crisis and other geopolitical hotspots, and frustration has been vented on equities, which also have been hurt by uninspiring corporate earnings this season.  Japan’s Nikkei tumbled 2.9%.  Equity losses elsewhere amount to 1.1% in Hong Kong, 1.0% in South Korea and Italy, 0.9% in […] More

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