Central Bank Watch
50-Bp New Zealand Rate Cut to 3.0% Matches Modal Market Forecast
March 11, 2009
The Reserve Bank of New Zealand Cash rate was cut for the sixth time, dropping to 3.0% from 3.5% and a peak of 8.25% prior to last July 24th. “Inflation pressure is abating rapidly” in response to global and domestic recessions. All segments of New Zealand’s economy are very weak at the moment. However, forward-looking […] More
Central Bank Watch
Swiss National Bank Rate Cut?
March 11, 2009
A story is circulating that the SNB inadvertently leaked news of a 25-basis point 3-month Libor target rate cut to 0.25%, within a new target range of 0-0.75%. Such would match market and my own expectations if true. The quarterly announcement is set for Thursday, and the Bank website still shows a target range of […] More
Currency Markets in the News
German and Japanese Orders
March 11, 2009
In January, Japanese machinery orders plunged 18.5%, while German industrial orders fell 8.0%. Foreign demand was particularly weak in each instance. Japanese foreign machinery orders declined 49% to 43.3% below the fourth-quarter average level and 71.2% less than in January 2008. Those results are much worse than generally anticipated. Likewise, foreign orders for German goods […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Chinese Exports and German Factory Orders Plunged
March 11, 2009
The dollar is mostly marginally softer, with drops of 0.3% against the euro and kiwi, 0.2% versus the yen and Australian dollar, and 0.1% against the Canadian dollar. The greenback firmed 0.2% against the Swiss franc and shows no change against sterling, however. Stocks mostly rose following yesterday’s U.S. rally. Gains amounted to 4.6% in […] More
