Larry's Blog
FT Endorses Fed Policy So Far
June 2, 2008
The lead editorial in today’s Financial Times gives the FOMC reasonably high marks for setting the correct priorities since the outbreak of the credit crunch ten months ago. As noted, policymaking is most sensitive to limiting “tail risk” rather than pitching simply to the most likely economic scenario. At the height of the period of […] More
Currency Markets in the News
Happy 10th Birthday
June 2, 2008
Although the euro did not come into being until the last day of 1998, the European Central Bank – a conception if you will – dates back to June 2, 1998. For those keeping score, the first meeting of the ECB Governing Council happened one week later on June 9th. Ten years ago, the dollar […] More
Aussie Monetary Policy to Remain on Hold
June 2, 2008
The Reserve Bank of Australia interest rate policy board meets early each month except in January. It’s decision will be announced at 04:30 GMT tomorrow. The last rate change was a 25-bp hike in the cash rate to 7.25% in March, the third such increase in three meetings and fourth move since August 2007. A […] More
Canadian Current Account Widens on Higher Commodity Prices
June 2, 2008
From the standpoint of economic growth, net foreign demand depressed Canadian real GDP by 1.5 percentage points in the year to 1Q08, reflecting previous excessive appreciation in the Canadian dollar and soft U.S. demand, especially for Canadian lumber and motor vehicles and auto parts. But the current account surplus last quarter revived sharply to 1.4% […] More
Currency Markets in the News
Factory Sectors Converging in U.S. and Euroland
June 2, 2008
The 49.6 U.S. manufacturing PMI reading in May was a full point greater than in April, whereas its Ezone counterpart edged down a tenth to 50.6. The differential between the two indices (U.S. minus Euroland) narrowed to -1.0 (49.6 minus 50.6) from -2.1 points in April, -3.4 points in March and -4.0 points in February. […] More
Canadian GDP Barely Crawling
June 2, 2008
Over the last two calendar quarters, real growth in Canada amounted to 0.2% at a seasonally adjusted annualized rate, a half-percentage point below the U.S. pace of 0.7% saar. Personal consumption soared 5.3% saar, more than three times faster than in the United States, but exports sank 5.8% saar compared to a 4.6% increase in […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad
June 2, 2008
Sterling (-1.0% against the dollar) is weak, while the yen (+0.6%) has strengthened. Other currency movments since Friday’s close are insignificant. In Asia, the Nikkei rose 0.7%, while stocks in China and Hong Kong rose 0.4% and 1.2%. But in Europe, the Dax (-1.0%) and Ftse (-0.8%) are lower. Sovereign bond yields are mostly higher. […] More
