Currency Markets in the News
Last Month's ECB Meeting
October 1, 2008
The September 4th ECB statement and press conference conceded a bigger growth slowdown around mid-2008 and one that was not exclusively a reaction to unsustainably brisk first-quarter growth of 2.7% at a seasonally adjusted annual rate. Otherwise, the statement pretty much stuck to script, predicting a prolonged period of above-target CPI inflation and upside-biased risks […] More
Currency Markets in the News
Where's The Bottom?: The Depression and Other Precedents
October 1, 2008
No question captures this year’s mood of mounting fear than the investor’s lament, “where’s the bottom?’ One can be talking about share prices, economic activity and — let us hope not — general prices. Like the 1930’s, the phenomenon of weakness is global and follows a prolonged period of brisk asset price appreciation and real-side […] More
Currency Markets in the News
Manufacturing: U.S. and Euroland PMI's Cross Over Again
October 1, 2008
Early today, Euroland reported a downward revision of its September PMI-manufacturing index to 45.0 from a preliminary estimate of 45.3 and an August reading of 47.6. In the United States, the Institute of Supply Management just announced a much bigger 6.4 plunge in the U.S. PMI-mf’g index to 43.5. Consequently, the straight algebraic differential (U.S. […] More
Currency Markets in the News
Japanese "Tankan" Business Survey Reveals Further Japanese Slide Into Recession
October 1, 2008
The quarterly business survey compiled by the Bank of Japan broadly classifies six categories of firms: big, medium, and small manufacturers and non-manufacturers. Respondents are asked if conditions are favorable or unfavorable, and the percentage of the latter is subtracted from the percentage of the former to produce a diffusion index. A negative diffusion index […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Markets Await Senate Vote on Revamped TARP Bill Today
October 1, 2008
Money market tensions remain severe. Central Banks in Euroland, Switzerland, the U.K. injected $67.5 billion of dollar liquidity. Central banks in Australia and Japan also added liquidity. Bank of England and ECB drained some of their own currency liquidity following end of calendar quarter. Libor rates very high. The dollar began 4Q on its back […] More
