Consumption: the Key U.S. Imbalance
November 26, 2008
It is imprudent to spend everything one earns. It’s a lesson taught young-aged children in the lyrics of I’ve Got Sixpence. Think of the two pence that gets lent as the portion being saved or invested. I’ve got sixpenceJolly. jolly sixpenceI’ve got sixpence to last me all my lifeI’ve got twopence to spendAnd twopence to […] More
Currency Markets in the News
A Global Attack on a Global Demand Deficiency
November 26, 2008
Acting in their own interests and based on local economic prospects, more central banks cut interest rates today. The biggest move was a 108-basis point reduction in China’s lending rate to 5.58%, matching the cumulative cuts of 27 bps each on September 15, October 8, and October 29th. The People’s Bank of China also slashed […] More
Currency Markets in the News
Inflation in Rapid Retreat Creates Leeway for Looser Monetary Policy
November 26, 2008
Price data released by Germany today exemplify a remarkable reversal of inflation trends and risks. Import prices dropped 3.6% in October on top of declines of 1.0% in September and 0.8% in August, and the 12-month rate of import price inflation plunged to 2.9% from 7.6% in September and 9.3% in October. Lower oil costs […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: European Stocks, Bond Yields, and Euro Dropped
November 26, 2008
The dollar is unchanged against the Canadian dollar and yen but has climbed 0.9% against the Swiss franc, 0.8% versus sterling and 0.7% relative to the euro. Commodity currencies are narrowly mixed. The Paris Cac (-2.4%), German Dax (-1.5%) and British Ftse (-2.1%) show big losses on recessionary concerns. Equities are off 1.5% in Sweden […] More
