Draghi
ECB Eases in May
May 3, 2013
The ECB cut an interest rate for the first time in ten months. On May 2, the refinancing rate was cut to 0.50% from 0.75%, but the deposit rate was left at zero percent. Fixed rate unlimited MROs were extended to continue through July 2014, and a 3-month LTRO was announced. In President Draghi’s introductory […] More
Yen Weaker after G20 Statement’s Release
February 18, 2013
A statement from G20 finance ministers and central bank governors did not single out Japan. Officials said competitive currency devaluations should be avoided by allowed domestic macroeconomic stimulus to promote growth and counter inflation that is too low are negative. The yen fell to overnight lows of 94.23/USD and 125.93/EUR. China has reopened after the […] More
ECB Review: No Big Surprises
February 7, 2013
ECB interest rates — a 0.75% refinancing rate flanked by a zero deposit rate and a 1.50% marginal lending rate — were left unchanged as expected. They’ve been at these levels since last July’s easing. Remarks on growth and inflation were consistent with what has been said in the recent past including at January’s meeting […] More
Focus on Bank of England and ECB
February 7, 2013
The dollar is narrowly mixed with gains of 0.4% against the kiwi, 0.2% versus the euro and yen, and 0.1% against the Australian dollar but declines of 0.3% versus the Swiss franc and sterling and 0.1% relative to the loonie. The yuan is steady. After Wednesday’s 3.8% leap, the Nikkei settled back 0.9%. Elsewhere in […] More
Investors Heartened by Reported Progress on Fiscal Cliff Talks
December 18, 2012
Share prices rose overnight by 1.0% in Japan, 0.6% in India, 0.5% in Australia, 0.3% in New Zealand and Thailand, 0.2% in Taiwan and the Philippines, and 0.1% in China. In Europe, equities have advanced 0.7% in Madrid, 0.4% in Frankfurt and Milan, and 0.3% in London, but the Paris Cac is off 0.1%. Not […] More
Transformative Election Results in Japan
December 17, 2012
Japan’s Liberal Democratic Party captured 294 seats in the lower house of parliament, a massive gain from the 119 seats it held previously. Along with New Komeito’s 31-seat total, the incoming coalition will control a “supermajority” of 325 seats, more than 2/3rds of the 480 seats in that legislative chamber, and that total will enable […] More
ECB Discussed but Didn’t Cut Interest Rates
December 6, 2012
The ECB’s refinancing rate was left unchanged as expected at 0.75% and will continue to be flanked by a zero deposit rate and a 1.5% marginal lending rate. This was the decision that analysts were expecting. Rates have been at these levels since a reduction at the monthly meeting in early July. Pdt in Q&A […] More
Dollar Down, Stocks Up, and Japan Closed
November 23, 2012
Continuing optimism about the resolution of Euroland’s debt crisis and U.S. fiscal cliff talks depressed the dollar by 0.6% against the kiwi, 0.5% relative to the euro, 0.4% versus the Swissie and Australian dollar, 0.3% against sterling, 0.2% versus the yen and 0.1% against the loonie. Taiwan led a rally in Asian stock markets with […] More
ECB Preview
October 3, 2012
Most analysts, myself included, do not anticipate an interest rate cut this month. After the September meeting of the Governing Council, the conditional and unlimited elements of the proposed OTM program were fleshed out. Spain and Greece are balking at the required submission to macroeconomic reforms, yet the past month has seen investors give the […] More
Softer Dollar
September 11, 2012
The dollar has lost 0.6% against the kiwi, 0.5% against the euro, 0.4% versus the loonie and Australian dollar, 0.3% relative to the Swiss franc and yen, and 0.2% against sterling. The yuan is steady. The euro strengthened to $1.2821, its firmest level since May 21st. Euro debt concerns continued to weigh on European equities, […] More
