Archive for January 2009

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Australian and New Zealand Dollars Falter

January 29, 2009

The U.S. dollar rose 1.2% against both the Australian and New Zealand dollars. The Reserve Bank of New Zealand cut its cash rate by a greater-than-expected 150 basis points to 3.5% following reductions of 100 bps on November 23rd and 150 bps on December 4th. The greenback is mixed otherwise, sliding 0.6% against the yen, […] More

Central Bank Watch

New Zealand Cash Rate Slashed by Another 150 Basis Points

January 28, 2009

In less than ten weeks, the cash rate of the Reserve Bank of New Zealand has dropped from 7.5% to 3.5% with drops of 100 basis points on November 23rd and of 150 basis points each on December 4th and today.  One needs to look no further than that to grasp how worried monetary officials […] More

Lacker Dissents From FOMC Majority

January 28, 2009

The FOMC statement released today was not much different from December’s communique. There was no change in the Fed funds target, which is already pinned in a range centered on 0.125%. Some officials in the U.S., as at the ECB and Bank of Japan, fear that going all the way to a point target of […] More

Vital Market Signs When FOMC Met Previously

January 28, 2009

  EUR/$ $/JPY 10Y, % DJIA Oil, $ 06/30/04 1.2173 109.44 4.63 10396 37.95 06/30/05 1.2090 110.89 3.96 10370 57.00 06/29/06 1.2527 116.07 5.20 11077 73.41 06/28/07 1.3452 123.17 5.10 13456 69.82 08/07/07 1.3749 118.55 4.73 13510 72.27 09/18/07 1.3888 115.75 4.51 13475 81.42 10/31/07 1.4458 115.28 4.42 13873 93.59 12/11/07 1.4682 111.49 4.11 13645 […] More

Currency Markets in the News

Worst Global Economy Since WW2

January 28, 2009

New forecasts from the IMF call for world growth of only 0.5% in 2009, down from 3.4% in 2008 and 5.2% in 2007.  Growth has never been as low as a half percent in a calendar year since the Second World War.  0.5% represents a revision from 2.2% projected by the IMF in November.  The […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Softer Dollar Ahead of FOMC Announcement

January 28, 2009

The dollar relinquished another 2.2% against the pound sterling but also dropped 0.9% against the Australian dollar, 0.7% against the Canadian dollar, and 0.6% relative to the euro. The yen lost 0.4%. The new U.S. government is reportedly moving closer to buying up a lot of bad bank assets. The FOMC announcement comes at 19:15 […] More

Currency Markets in the News

A Possible Glimmer of Economic Hope

January 27, 2009

A shift in the balance between better-than-expected and worse-than-expected economic data can herald a change in momentum.  When most data arrive weaker-than-forecast, that often is an early detector of an absolute deterioration in real economic trends to come.  And for economies in recession, one of the first signs of light at the end of the […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Sterling Strengthened Further

January 27, 2009

Sterling rose another 1.1% against the dollar and is trading 4.7% above last Friday’s low of $1.3502. The U.S. currency otherwise is narrowly mixed, with no change against the yen, gains of 0.2% against Canadian dollar and 0.1% versus the Swiss franc, and losses of 0.4% against the Australian dollar and 0.2% relative to the […] More

Budget Do-or-Die for Canadian Government

January 26, 2009

Prime Minister Stephen Harper’s minority Conservative government has been sweetening the stimulus it will offer in tomorrow’s Federal 2009-10 budget (due at 21:00 GMT).  Initial resistance by Harper to fiscal pump-priming has given way to endorsement.  Eleven consecutive surpluses, a streak of great pride in Ottawa, will give way to an expected deficit of about […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Slow Start to Busy Week

January 26, 2009

Many Asian markets are closed for the Chinese new year: China, Hong Kong, Indonesia, Singapore, Malaysia,and Vietnam. China will be shut all week. Australian markets were also closed today in observance of Australia Day. Japan’s Nikkei dropped another 0.8%, and the Pakastani bourse slumped 2.4%. In contrast, European share prices are higher, with gains of […] More

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