Archive for May 27th, 2008

Currency Markets in the News

German Growth Deconstructed

May 27, 2008

Details of the 1.5% first-quarter jump in German real GDP (6.3% saar) were released today. With that spurt, on-year growth over the past eight quarters has averaged 2.9%. 2006 had been a stronger year than 2007, with faster growth in all four quarters than in the corresponding quarter of 2007. But that trend toward less […] More

Three Factions at the Bank of England

May 27, 2008

British monetary policy is decided by a committee of nine people, who as in many other G7 economies are challenged by weakening growth prospects as well as intensifying inflation. Of the last eight monthly policy meetings, only one resulted in a unanimous decision. Mr. Blanchflower was more dovish than the majority at the other seven […] More

Doubts Rise Bank of Canada Will Ease in June

May 27, 2008

Despite indications that Fed easing is on hold, a 25-bp rate reduction by the Bank of Canada on June 10th had been perceived as highly probable. Real GDP had risen just 0.8% saar in 4Q07. Wholesale turnover had declined in both 4Q07 (-0.3%) and 1Q08 (-0.8% from 4Q and -0.4% from 1Q07). Canada’s index of […] More

New Overnight Developments Abroad - Daily Update

New Developments Abroad

May 27, 2008

New burst of carry trading is reflected in the dollar’s drop of 0.3% against the kiwi, 0.2% versus the CAD and 0.1% against the Aussie dollar, juxtaposed against USD gains of 0.5% against the yen, 0.2% against the Swissy and 0.1% against the euro. USD also up 0.3% against sterling. Ten-year JGB yield hit a […] More