Archive for July 2008

Currency Markets in the News

Weakening Sentiment in the Euro Area

July 28, 2008

Business and consumer confidence each tailed off further this past month.  July data will be released on Wednesday.  Overall economic sentiment in June fell to 94.9, lowest since August 2003, from 97.6 in May and 111.0 in July 2007.  Consumer confidence slid to -17 from -15 in May and -2 in July 2007, while industrial […] More

Currency Markets in the News

Awaiting More Weak Japanese Data

July 28, 2008

In an economy that expanded 4.0% at a seasonally adjusted annualized rate in the latest reported quarter and by 2.9% saar in the quarter before that, one ordinarily does not expect to hear warnings about a coming recession.  However, that’s exactly what’s happening in Japan.  Despite decent quarterly growth in 4Q07 and 1Q08, real GDP […] More

New Overnight Developments Abroad - Daily Update

New Developments Abroad: Slow Start to Final July Week

July 28, 2008

The dollar fell except against sterling, with drops of 0.3% against the Swissy, kiwi and Aussie dollar, 0.2% against the euro and 0.1% versus the yen and Canadian dollar.  The greenback gained 0.2% relative to sterling and 0.1% against the yuan. European and Asian stocks are mixed.  Nikkei up 0.1%.  Chinese CSI 300 up 0.7%, […] More

Foreign Exchange Insights and Next Week

Foreign Exchange Insights

July 25, 2008

The U.S. dollar rose against a broader array of other currencies and by greater amounts this past week than in the previous week to July 18th.  Its gains even included a minuscule uptick against the Chinese yuan.  As of 14:45 GMT, the dollar had advanced 2.5% against the New Zealand currency and by between 1.0% […] More

Larry's Blog

America's Economic Problem

July 25, 2008

Former U.S. Labor Secretary Robert Reich, now an economics professor at Berkeley, posted a blog today that gives one of the most insightful explanations for the sputtering U.S. economy that I’ve thus far seen.  The underlying problem will be difficult to fix and take considerable time.  Click here to read Professor Reich’s take on the […] More

New Overnight Developments Abroad - Daily Update

New Developments Abroad: Further Equity Sell-Off in Asia and Europe

July 25, 2008

Stocks in Asia fell by 2.0% in Japan, 3.3% in India, 1.8% in Taiwan, 1.5% in Vietnam, 1.3% in China, 0.9% in the Philippines, and 0.5% in Indonesia. Equities tumbled 3.4% in Australia.  In Europe, the Dax is off 1.5%. The Ftse fell 1.0%, and the Paris Cac lost 0.9%.  U.S. open indicated lower. The […] More

Currency Markets in the News

Watch the Second Derivative of Euroland Growth

July 24, 2008

It was no surprise that Euroland growth slowed in early spring.  Special factors like a mild winter had strengthened growth in 1Q08 to an unsustainable speed, and Europe faced numerous headwinds: tighter credit conditions, more expensive energy costs, weakening demand in export markets, and an overvalued euro.  Officials at the ECB have admonished market watchers […] More

Currency Markets in the News

Euroland Balance of Payments Suggests A Weaker Euro

July 24, 2008

The current account in Euroland was in deficit in three of the first five months of 2008, and the January-May combined current account was also in the red to the tune of a mild EUR 5.8 billion.  That amount was similar to the seasonally non-adjusted five-month sum of EUR 5.4 billion, representing an adverse swing […] More

New Overnight Developments Abroad - Daily Update

New Developments Abroad: G7 Heading For Recession?

July 24, 2008

The dollar advanced 1.1% against the kiwi and 0.6% against sterling but otherwise shows little overnight change. Stocks in Asia widely mixed: Japanese  Nikkei up 2.2%, China +3.3%, Philippines +3.0%, Vietnam -2.2%, India -1.1%, and Hong Kong -0.2%.  Australia +0.8%. Stocks lower in Europe: German Dax -1.0%.  Paris Cac -0.6%.  U.K. Ftse -0.5%. Ten-year sovereign […] More

Reserve Bank of New Zealand Does First Ease

July 23, 2008

New Zealand’s cash rate was cut to 8.0% from 8.25%, a level that had been in force for 12 months.  This easing was considered possible by market analysts but much less probable than a reduction in September.  The cash rate was last reduced in July 2003.  From a 5.0% level after that, there had been […] More

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