Currency Markets in the News
Bank of Japan Tankan Underscores Mounting Deflationary Risk
December 15, 2008
Bm Bnm Sm Snm All Dec 1998 -49 -39 -56 -43 Dec 1999 -17 -19 -32 -28 Dec 2000 10 -10 -16 -23 Dec 2001 -38 -22 -49 -39 -40 Dec 2002 -9 -16 -33 -36 -28 Dec 2003 11 -9 -13 -28 -15 Dec 2004 22 11 5 -14 […] More
Larry's Blog
Next Week
December 12, 2008
The three premier events next week happen early: Japan’s quarterly business survey (also known as the Tankan) at 23:50 GMT on Sunday, Euroland’s preliminary PMI readings for manufacturing, services, and the composite index due Tuesday at 09:00 GMT, and the FOMC interest rate announcement later on Tuesday at 18:15 GMT. The Tankan is managed by […] More
Foreign Exchange Insights and Next Week
Weekly Foreign Exchange Insights: December 12th
December 12, 2008
The holiday season, such as it is in this year to forget, will envelop currency trading next week. The dollar falls more times than not in the second half of December and approaches this one with a distinctly offered tone. Fourth-quarter dollar highs were reached in October against the yen, euro, Canadian dollar, and Australian […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Officials Get Cold Feet
December 12, 2008
The U.S. senate rejected a $14 billion bailout for Detroit automakers. Leaders in the EU scaled back their fiscal stimulus proposals to 1.5% of GDP after objections from German leaders. More ECB officials suggest that interest rates will not be lowered much further despite deepening recession. Recession fears depressed stocks sharply in Asia and Europe. […] More
How Bad is the U.S. Labor Market?
December 11, 2008
Here are four little facts you’re unlikely to find elsewhere. During the second half of 2008, new jobless insurance claims recorded big upward jumps in alternating four-week periods. New claims averaged 540.5 thousand workers per week during the latest four weeks to December 6th. That was 10.1% or almost 50K greater than 491K per week […] More
Central Bank Watch
Swiss National Bank Cuts Target Interest Rate to 0.50%
December 11, 2008
The Swiss National Bank targets 3-month LIBOR. It sets a range, usually 100 basis points in width, and generally aims for the middle of that range, which was cut in half today from 1.0% to 0.5%. There were three earlier cuts of 100 basis points on November 20th, 50 basis points on November 6th and […] More
Central Bank Watch
Central Bank of Taiwan Cuts Discount Rate to 2.0%
December 11, 2008
A reduction of 75 basis points by the Central Bank of Taiwan was 25 basis points greater than the market consensus forecast and raised cumulative cuts since September to 162.5 basis points. 2.0% is the lowest level in slightly more than three years. A statement released by officials of the central bank said CPI inflation […] More
Central Bank Watch
Reserve Bank of South Africa Begins Easing Policy
December 11, 2008
The South African repo rate was cut by 50 basis points to 11.5%. While many other central banks including three earlier today had implemented several recent interest rate reductions, this was the first of a credit loosening cycle for South Africa, where CPIX and PPI inflation still surpass 10%. But an explanatory statement released by […] More
Currency Markets in the News
Global Trade Shrinking Alarmingly
December 11, 2008
Many countries reported trade figures this week. In times of recession, more meaningful information can be gleaned from the trends in exports and imports than from movements in trade balances. The World Bank is projecting a 2.1% drop in global trade next year, and that will be a key channel through which the recession among […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Central Bank Rate Cuts in Korea, Taiwan and Switzerland
December 11, 2008
Dollar downward momentum picked up. The U.S. currency lost 1.8% against the kiwi, 1.5% against the euro, 1.4% against the Australian dollar, 1.1% against the yen, 0.9% against the Canadian dollar, 0.8% against sterling, and 0.6% against the Swiss franc. Stock market movements have generally small by recent standards. U.S. futures indicate likely rise at […] More
