Bank of Canada Preview
December 8, 2008
The Bank of Canada will not cut its 2.25% interest rate by less than 50 basis points, and I believe monetary officials are more likely to cut rates by more than 50 basis points than by only that amount. Relative to what the Fed has done in reducing target interest rates, the Bank of Canada […] More
Currency Markets in the News
Many Data Releases Set for Tuesday
December 8, 2008
Revised Japanese GDP and the Bank of Canada’s final scheduled interest rate policy announcement head a very crowded data and events schedule tomorrow. The Canadian meeting, which I expect to implement a rate cut of at least 50 basis points, will be previewed in a separate post. Japanese national income accounts, that is GDP and […] More
Currency Markets in the News
Projected Growth and Inflation in Rapid Decline
December 8, 2008
The latest Issue of The Economist includes the results of its latest monthly survey of macroeconomic forecasts, showing additional substantial downgrades for projected growth and inflation in 2009. Rarely has a consensus changed so rapidly within a mere three months. The first table below documents the evolution of projected growth since September, and the second […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Planned Fiscal Stimulus Extends Recovery in Stocks
December 8, 2008
A strong rise in Asian and European stocks has sent the yen and dollar lower. The U.S. currency gained 0.6% against the yen but has dropped 2.5% against the Australian dollar, 1.7% against the kiwi, 1.5% versus the Canadian dollar, 1.3% relative to sterling, 1.0% against the euro and 0.7% against the Swiss franc. The […] More
