A Closer Bank of Canada Call Than Generally Realized
September 2, 2008
The sixth of eight scheduled Bank of Canada rate announcements in 2008 will be made Wednesday at 13:00 GMT (09:00 local EDT). Four rate cuts were implemented between December 2007 and April 2008, the first two by 25 bps and the last two by 50 bps to 3.0%. My baseline forecast of no change is […] More
Larry's Blog
Dollar's Summer Performance Was Best Since 1995
September 2, 2008
The summer season in currency trading is book-ended by the U.S. Memorial Day and Labor Day holidays. In this middle of three annual seasons, the U.S. currency rose 11.9% against the Australian dollar and by a similar amount against the kiwi. It advanced 8.6% against sterling, 7.5% against the Swiss franc, 7.4% against the euro […] More
Trend Reversal in Australian Monetary Policy
September 2, 2008
The Australian cash rate was cut as expected to 7.0% from 7.25%, effective tomorrow. 7.25% had constituted the highest rate target since July 1996 and had been in place since March this year. There had been four 25-bp rate increases between August 2007 and March 2008, three increases in 2006, one in 2005, two in […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Commodities Plunge and Japanese Prime Minister Resigns
September 2, 2008
Oil prices sank as far as $105.46/barrel, lowest since April 4, and are off 7.0% on balance at $107.41. Gold dropped 3.3% to $807.40 per ounce. Prime Minister Fukuda resigned unexpectedly, faced with gridlock in parliament. Taro Aso is considered the leading contender to become the 11th prime minister in 15 years. Elections are possible. […] More
