Central Bank Watch
First Easing of Mexican Monetary Policy in Three Years
January 16, 2009
The Banco De Mexico cut its benchmark lending rate by 50 basis points from 8.25% to 7.75%. Analysts had been closely split over whether the central bank would inaugurate policy easing as soon as now. As with most central banks, forecasts that opted for the more aggressive policy approach did best. Real GDP grew only […] More
Foreign Exchange Insights and Next Week
Next Week
January 16, 2009
The week to January 23rd would be a busy anyway. The Obama inaugural at noon local time on Tuesday amid the worst economic recession since the 1930’s makes it historic. U.S. markets are closed Monday for Martin Luther King Day, so some people may be tempted to make this a four-day holiday weekend. Hungary’s central […] More
Foreign Exchange Insights and Next Week
Weekly Foreign Exchange Insights: January 16th
January 16, 2009
In the present deflationary economic context, it is better to have a weak exchange rate. One of the lessons from the 1930’s depression was that having a weakening currency early in the experience seemed to soften the blow. Officials, who speak cavalierly about their currencies, are being smart, not reckless. The start of a new […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: End-of-Week Reversal in Forex, Stock, and Bond Trends
January 16, 2009
The yen weakened 1.0% against the dollar, which in turn fell by 2.0% against the Australian dollar, 1.9% versus sterling, 1.2% relative to the Canadian dollar, 1.1% against the euro, and 0.7% against the Swiss franc. Stocks rallied after a poor week. In Asia, the Nikkei closed 2.6% higher on the day, and gains were […] More
