Archive for February 3rd, 2015

Foreign Exchange Insights and Next Week

Oil Power

February 3, 2015

Plunging oil prices in the second half of 2014 and all but the end of January exerted a profound effect on financial markets including foreign exchange.  The direction of oil’s move was never in dispute, but the size of the decline continually astounded market players and became a source of uncertainty regarding an appropriate market […] More

Deeper Analysis

Manufacturing Gap Between the United States and Euroland Narrowed Last Month

February 3, 2015

The U.S. minus Ezone factory purchasing managers spread fell to 2.5 points in January from 4.5 points in December and 7.5 points in November.  This was the smallest manufacturing gap between the two economies in nine months.  A sharp depreciation of the euro, which in January averaged $1.162 or 16% less than in March-April of […] More

Central Bank Watch

Reserve Bank of India

February 3, 2015

India’s is one of the central banks that already had cut interest rates this year in response to the disinflationary impact of the price of oil and other key commodities.  See my earlier review of the 25-basis point cut on January 15 following an unscheduled meeting of Reserve Bank of India policymakers.  Today was the […] More

Central Bank Watch

First Easing by Reserve Bank of Australia Since August 2013

February 3, 2015

After cutting Australia’s official cash rate to a record low of 2.25% from 2.5%, the RBA released a statement that justified the move on several counts. “Growth is continuing at a below-trend pace, with domestic demand growth overall quite weak…The economy is likely to be operating with a degree of spare capacity for some time […] More

New Overnight Developments Abroad - Daily Update

Financial Markets Relieved by Two Developments

February 3, 2015

The new Greek government retreated from talk of a debt write-off and is instead offering a plan to swap its existing debt with new securities.  The plan would give Greece more time to pay off its obligations.  Greek share prices shot up over 8% in response.  The 10-year Greek sovereign debt yields slid two basis […] More

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