Currency Markets in the News
The Abruptness of Germany's Slowdown
August 26, 2008
Some members that participate in the European Monetary Union have economies in worse shape than Germany, important countries like Italy, Spain and France. Because Germany has the region’s largest economy and in light of the abruptness of its turn for the worse, the slowdown in Germany has hurt confidence in the euro the most. Germany […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Germany Moves Closer to Recession
August 26, 2008
The dollar advanced another 1.5% against the Australian dollar, 1.1% against the euro, 1.0% against the Swiss franc and sterling, 0.6% against the kiwi, 0.4% relative to the yen and 0.3% against the Canadian dollar. EUR/USD touches lowest level since mid-February. GBP/USD is lowest since July 2006. There was more unwinding of carry trades. Most […] More
Currency Markets in the News
Euroland Balance of Payments Worsens
August 25, 2008
The seasonally adjusted current account was in deficit in 1H08 by EUR 25.0 billion or EUR 50 billion at an annual rate. That constitutes a deterioration from annualized surpluses of almost EUR 11 billion in 2H07 and 19 billion in the twelve months to June 2007. Meanwhile, the year to mid-2008 saw direct investment outflows […] More
Currency Markets in the News
When Might We See $1.20 Per Euro Again?
August 25, 2008
This question was put to me over the weekend. While the euro has not traded as low as $1.20 in 29 months, it is not an unreasonable query. $1.20 lies near this relationship’s long-term center of gravity. The euro opened at about $1.18 on its first day of trading at the start of 1999 and […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Week Starts Quietly
August 25, 2008
The Olympic games and K.C. Fed’s Jackson Hole annual symposium are over. Britain is closed for its late-summer Bank holiday. U.S. existing home sales, due at 14:00 GMT, are the only data release of note today. The Democratic Party national convention begins in Denver. Not much is happening. The dollar is narrowly mixed, with drops […] More
Foreign Exchange Insights and Next Week
Foreign Exchange Insights: August 22nd
August 22, 2008
The dollar’s summer upswing still has some life. It is ending this week on an up note, even though it showed modest to moderate net losses for the period against the euro, yen, Swissy, and key commodity currencies as of 13:30 GMT this morning. Those losses look trivial, juxtaposed against two-week prior advances between August […] More
Revised British GDP Data Bleak
August 22, 2008
The headline blared that real GDP had failed to expand in 2Q08 for the first quarter since 2Q92 at the end of Britain’s last recession. Actually if expressed at an annualized rate, that is the level of real GDP in 2Q compared to 1Q raised to the fourth power, there was marginal positive growth last […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Dollar Ending Week on Firm Note
August 22, 2008
The dollar has recorded overnight gains of 1.2% against the kiwi, 1.0% against sterling, 0.9% against the Australian dollar, 0.8% against the yen, 0.6% relative to the Swiss franc, 0.5% against the euro and 0.3% against the Canadian dollar. Oil (down 0.4% to $120.72/barrel) and gold (-0.3% to $836.60 per ounce) came off yesterday’s highs. […] More
Currency Markets in the News
Euroland PMI Data Exhibiting Continuing Weakness
August 21, 2008
PMI readings weakened noticeably in just three months between May and August. The overall composite index was 48.0, down from 51.1 in May, and included a drop in the orders component to 46.5 from 49.8 and in the employment sub-index to 49.0 form 51.1. In those three months, Germany’s index fell 4.7 points to 50.3, […] More
Canadian CPI Delivers No Surprise
August 21, 2008
Canadian total consumer prices posted a smaller seasonally adjusted monthly rise in July of 0.3% after increases of 0.8% in June, 0.7% in May and 0.5% in April, and the 12-month inflation rate was at an expected 3.4% compared to U.S. inflation of 5.6%. 3.4% represents a 64-month high and was less than the Bank […] More
