Foreign Exchange Insights and Next Week
Next Week
January 23, 2009
The last week of every month is stuffed with data releases, and a number of central bank policy meetings are scheduled, too. The week has two holidays of note, Australia Day on Monday and the Chinese New Year, which will be observed in several Asian centers for most of next week. It is widely agreed […] More
Foreign Exchange Insights and Next Week
Weekly Foreign Exchange Insights: January 23rd
January 23, 2009
The dollar and yen are off to strong starts in 2009, while sterling broke sharply lower this past week. Currency movement continues to be driven by financial market deleveraging and the flight to safety, not fundamental economic comparisons or interest rate differentials. Global economic prospects remain too uncertain to rank with confidence the severity of […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Yen and Dollar Sharply Higher, Stocks Are Lower
January 23, 2009
The dollar is off 0.4% against the yen but has climbed 2.2% against sterling, 1.8% against the Ozzie dollar, and 1.6% versus the euro and kiwi. The Canadian dollar fell 0.6%. Oil prices are 1.6% lower at $42.96/barrel, whereas gold advanced 1.7% to $873.20 per ounce. Stocks are having another horrific day, with drops of […] More
Currency Markets in the News
Global Great Recession
January 22, 2009
The array of data released today showcases the global component of the economic downturn. Japanese exports to the EU, U.S., and Asia fell by 41.8%, 26.6% and 36.4% in the year to December. Japan’s 2008 trade surplus of Y 2.16 trillion was 78% smaller than the average annual surplus during the previous four years. On-year […] More
Central Bank Watch
Bank of Japan Press Conference
January 22, 2009
Bank of Japan officials retained a rate target of 0.1% and released a number of documents that fleshed out several actions to alleviate extremely stressful corporate financing conditions. All of such were as expected. Monetary officials spoke loudest with new price and growth forecasts, updating estimates made at the end of October. New point projections […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Stocks Rally Despite Some Awful Data
January 22, 2009
Stocks rose 1.9% in Japan, 1.6% in Thailand, 1.3% in the Philippines, and 1.3% in Australia. They are trading higher by 1.5% in France and Britain and by 1.3% in Germany. The inspiration for these gains came from yesterday’s better tone in U.S. shares and despite more evidence of profound economic weakness. The dollar has […] More
Central Bank Watch
Central Bank of Brazil Cuts Selic Rate by 100 Basis Points
January 21, 2009
The Brazilian central bank rate was lowered to 12.75% from a cyclical high of 13.75%. The drop was twice as much as expected and yet another example of front-loaded monetary stimulus. The easing was made in response to an export-led softening of economic growth, steep declines in the stock market, deterioration in the labor market, […] More
Currency Markets in the News
Bank of Japan Preview And Japanese Lessons for Other Governments
January 21, 2009
A rate cut by the Bank of Japan on Thursday would be a huge surprise, since the benchmark overnight money target and Lombard rate are at at 0.1% and 0.3%, leaving no cushion short of a restoration of zero rates and adoption of quantitative easing. These are options that BoJ officials continue to resist. There […] More
Central Bank Watch
Monetary Policy Eased Sharply in Malaysia
January 21, 2009
After cutting its benchmark rate by a much larger-than-forecast 75 basis points to 2.50% and the reserve ratio by 150 basis points to 2.0%, Bank Negara Malaysia released a statement, citing the downward impact of global recession on exports, investment and inflation. This was Malaysia’s second easing and three times greater than the first one […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Overseas Share Prices Bleed Further
January 21, 2009
Stocks fell in Asia by 3.5% in India, 3.1% in the Philippines, 2.9% in Hong Kong, 2.3% in South Korea, 2.0% in Japan and 1.7% in Indonesia. Australia’s bourse fell by 1.0%. In Europe, the British Ftse, Paris Cac and German Dax are trading lower by 1.3%, 1.4%, and 0.6%. The dollar lost 0.7% against […] More
