Not a Big Reaction to Greek Debt Agreement

November 27, 2012

Ecofin and the IMF settled their differences over Greek aid, paving the way for a EUR 34.4 billion installment next month.  The accord’s assumptions about future Greek growth look suspect. The dollar is 0.2% stronger against the euro and Swiss franc, unchanged versus the yen, yuan, kiwi, and sterling, down 0.1% against the loonie, and […] More

Eye on the Federal Reserve

September 13, 2012

Ahead of the eagerly awaited FOMC policy decision and press conference at 16:30 GMT and 18:15 GMT respectively, stocks are down, and five other central banks have announced their policy decisions. The Reserve Bank of New Zealand’s Official Cash Rate was left at 2.5%, its level since March 2011.  Officials suggested a change is unlikely […] More

Dollar Down ahead of Bernanke’s Jackson Hole Speech

August 31, 2012

The dollar has declined by 0.8% against the euro, which hit an 8-week high of $1.2629.  The dollar also has fallen 0.8% against the Swiss franc, as well as 0.6% versus the loonie, 0.5% relative to sterling, 0.4% against the Aussie and New Zealand dollars, and even 0.3% against the yen. Investors hope to hear […] More

New Frustrations over Global Growth

August 24, 2012

Share prices continue to be depressed by growth prospects in China, Europe, and the United States.  Investors wonder what central banks might do to promote activity.  The People‚Äôs Bank of China did not cut interest rates or reserve requirements overnight.  A key focus next week are the speeches at the Jackson Hole Symposium of Fed […] More

Second Week of August Begins Quietly

August 6, 2012

The dollar rose 0.5% against sterling, fell 0.4% against the yen, and is otherwise pretty stable with upticks of 0.1% versus the euro, Swiss franc, kiwi, Aussie dollar and yuan but a 0.2% dip relative to the loonie.  Share prices remained upbeat in continuing reaction to Friday’s U.S. jobs report and to hope that a […] More

Lower Long-Term Interest Rates and a Focus on Monetary Policies

July 18, 2012

The yields on 10-year German bunds, British gilts and Japanese JGBs edged down by three, two and one basis points.  A drop is also signaled in U.S. Treasury yields.  Over the month since June 18, German bund and British gilt yields have dropped by 21 and 18 basis points.  Treasury and JGB yields are down […] More

Marking Time Ahead of Bernanke Testimony and U.S. Data Releases

July 17, 2012

Today’s main action will be in the United States. Fed Chairman Bernanke gives the first half of his semi-annual Humphrey-Hawkins testimony at 14:00 GMT before the Senate Banking Committee.  Expectations exist that he may announce or strongly hint at new stimulus.  H-H has through the years not been a typical venue for unveiling policy changes. […] More

Comments on the Bernanke Press Conference

April 25, 2012

Several useful messages were delivered at the press conference. One of the biggest downside growth risks still facing the United States is the uncertain degree of fiscal drag that will be felt at the start of next year.  If Congress legislates no changes in planned austerity from the spending and tax side, the Fed Chairman […] More

Sterling Declined

April 25, 2012

Britain’s disappointing first-quarter GDP report depressed sterling. Small business sentiment in Japan also underperformed expectations.  Speculation persists that the Bank of Japan will ease policy on Friday. Investors await today’s FOMC statement at 16:30 GMT and Fed Chairman Bernanke’s press conference at 18:15 GMT. New Zealand and Australia were closed to day for ANZAC Day, […] More

Chinese GDP Disappointment Quells Mini-Stock Market Rally

April 13, 2012

Pacific Rim equities extended the Wednesday-Thursday recovery in global share prices.  Stocks advanced 1.8% in Hong Kong, 1.6% in Taiwan, 1.5% in Pakistan, 1.3% in Thailand, 1.2% in Japan, and 1.0% in Australia and The Philippines.  In Seoul where there was some relief that North Korea’s rocket launch had failed, stocks gained 1.1%. Then came […] More