Archive for March 19th, 2015

Foreign Exchange Insights and Next Week

Wildly Exciting Times for Currency Market Observers

March 19, 2015

Currency movements matter immensely but rarely get proper respect in U.S. macroeconomic policy.  In the unraveling days of the post-World War 2 fixed exchange rate era, former Secretary of Treasury John Connally arrogantly told his Group of Ten counterparts that the dollar is our currency but your problem.  These days, in contrast, the sharply rising […] More

Central Bank Watch

Fewer Fireworks from the Swiss National Bank as Interest Rate Target Not Changed

March 19, 2015

No central bank created a greater market surprise in the first quarter of 2015 than the Swiss National Bank, whose franc ceiling of 1.2000 per euro was abruptly discontinued on January 15, which hadn’t even been a scheduled policy review.  These are held quarterly.  Monetary policy had been subordinated to an exchange rate policy in […] More

Central Bank Watch

Bank of Norway Doesn’t Cut Key Policy Rate Further, Surprising Analysts

March 19, 2015

As an energy producer and exporter, the Norwegian economy is vulnerable to the slide in oil prices since June of last year.  The Executive Board of Norges Bank, which meets quarterly, engineered a 25-basis point interest rate cut at its December 2014 meeting but did not follow up on that move now because Adverse effects […] More

New Overnight Developments Abroad - Daily Update

Dollar Climb Resumes with a Vengeance

March 19, 2015

The post-FOMC selloff of the dollar was reversed quickly.  Overnight gains in the U.S. currency topped 1.0% against the euro (1.7%), Swissie (1.3%), and Australian dollar (1.2%).  The greenback also advanced by 0.9% against the loonie, 0.8% versus the kiwi, 0.6% relative to sterling, and 0.5% vis-a-vis the yen, but it’s 0.5% softer against the […] More

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