Currency Markets in the News
Weakness on Both Sides of the Atlantic
February 5, 2009
Everyday brings more evidence of the global recession’s severity. Today’s data were extraordinarily dire and bear special mention. German industrial orders plunged 49.6% at a seasonally adjusted annual rate last quarter from the 3Q level, with similar drops of 53.5% saar in foreign demand and 45.3% in domestic demand. A 47.2% drop in domestic orders […] More
Central Bank Watch
Czech National Bank Cuts Rate By Another 50 Basis Points
February 5, 2009
A reduction of the two-week repurchase rate to 1.75% from 2.25% was as analysts had forecast and followed cuts of 50 basis points in December and November and of 25 bps last August. In a released statement, officials markedly trimmed projections for both growth and inflation. Real GDP will fall this year and rise 1.0% […] More
Central Bank Watch
Reserve Bank of South Africa Eases 100 Basis Points
February 5, 2009
The repurchase rate was cut to 10.5% from 11.5% in follow-up to December’s initial 50-bp rate reduction. The size of the cut matches market expectations. The Monetary Policy Committee will next meet on April 15-16 and is likely to ease then, too. The 12% cyclical peak in rates was in place from mid-June to mid-December […] More
Currency Markets in the News
ECB Punts But Further Easing Possible in March
February 5, 2009
As foreshadowed, today’s ECB announcement of no change in rates and the ensuing press conference added little to the market’s information about the central bank’s thinking. The key refinancing rate remains at 2.0%, down from a peak of 4.25% after cuts of 50 bps each in October, November and January plus a record 75-bp reduction […] More
Central Bank Watch
Bank of England Cuts Its Rate By 50 Basis Points
February 5, 2009
The Bank of England met market expectations by reducing its Bank Rate to 1.0%, yet another all-time low in the 315-year history of the bank, from 1.5%. In five steps, the rate has fallen from 5.0% since the start of October. Stimulus from these cuts, fiscal relief, sterling depreciation, and lower commodity prices are predicted […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Another Huge Drop in German Orders
February 5, 2009
Investors expect the Bank of England to cut its key rate 50 basis points to 1.0% and the ECB to leave its rate at 2.0%. There are also central bank decisions today in the Czech Republic, Peru, and South Africa. Each is likely to unveil a rate cut. The dollar rose 0.4% against the yen […] More
