Currency Markets in the News
Is It Time to Take the Misery Index Out of Mothballs?
August 7, 2008
Designed by the renowned economist, Arthur Okun, the misery index measures stagflation by adding the unemployment rate to the year-over-year change in consumer prices. In 1976, challenger Jimmy Carter used an elevated misery index to assert why President Ford did not deserve reelection, and Ronald Reagan returned the favor even more effectively against Carter in […] More
Currency Markets in the News
ECB Concedes Growth Weaker Than Assumed
August 7, 2008
The ECB as expected kept a 4.25% refinancing rate and asserted that information since July’s 25-basis point rate increase justify that hike. None of this is surprising. I cannot recall any central bank, let alone the proud ECB, ever admitting one month after a rate change that it had acted in error. Points made about […] More
Central Bank Watch
Bank of England Keeps 5.0% Bank Rate
August 7, 2008
British interest rate policy remained frozen as expected, pulled between inflation that is at a decade-long high and activity that is sinking fast and broadly across all sectors. From a 5.75% peak, the Bank rate had been cut by 25 bps each in 12/07, 02/08 and 04/08. However, CPI inflation has jumped to 3.8% from […] More
New Overnight Developments Abroad - Daily Update
New Developments Abroad: Awaiting ECB and BOE Monthly Rate Decisions
August 7, 2008
The dollar is 0.3% lower against the yen, euro, Swissy and Australian dollar. It is off 0.2% against sterling and the C-dollar and -0.1% versus the kiwi. The Nikkei lost 1.0% after jumping 2.6% on Wednesday. Korea’s Kospi fell 0.9% after an unexpected rate hike. The Dax is up 0.6%. Ftse +0.5%. Sovereign 10-year yields […] More
