Archive for June 19th, 2014

Foreign Exchange Insights and Next Week

Early Days in a Newly Perceived Threat to Currency Market Stability

June 19, 2014

A lack of meaningful currency market movement this year among the major advanced pairs like EUR/USD and dollar/yen has been one element of a broader dampening of volatility in all sorts of financial markets.  Many commentators have noted that often such stability came before disruptive crises, and the worry that we may be in a […] More

Central Bank Watch

Filipino Monetary Policy Tweaked as SDA Interest Rate is Raised to 2.25%

June 19, 2014

Inflation risks in the Philippines are skewed to the upside because of El Nino, which has generated weather extremes that could elevate food and utility costs.  The baseline inflation forecast sees consumer prices hovering in the upper part of this year’s 3-5% target band and falling within next year’s corridor of 2.4%.  Accordingly, the overnight […] More

Central Bank Watch

Unchanged Swiss Monetary Policy after Quarterly Review

June 19, 2014

Almost three years have passed since the current policy stance was established to ward off deflation.  On August 3, 2011, the Swiss National Bank sliced the target 3-month Libor interest rate range and point to 0.0-0.25% and “around zero,” respectively.  A month later, officials introduced an asymmetric exchange rate objective, capping Swiss franc strength against […] More

Central Bank Watch

Central Bank of Norway Keeps 1.5% Benchmark Interest Rate and Releases Dovish Statement

June 19, 2014

Norges Bank’s policy rate has been at 1.5% since a 25-basis point cut in March 2012, which followed a 50-bp cut in November 2011.  The current level is only 25 basis points above the mid-2009 low.  A statement from the central bank Executive Board observes that other countries are likely to take longer to raise […] More

New Overnight Developments Abroad - Daily Update

Firmer Dollar and European Share Prices

June 19, 2014

Investors perceived a dovish message in Janet Yellen’s press conference yesterday.  The Swiss and Norwegian central bank statements fortified that risk on mood. Share prices have climbed 1.6% in Japan and Australia, 1.1% in Italy, 0.9% in Spain and France, and 0.8% in Britain and Germany.  China’s market fell another 1.5%, however. The dollar has […] More

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