Archive for May 12th, 2009

Currency Markets in the News

German Economic Slump

May 12, 2009

A slew of horrific monthly economic data will culminate this Friday with the release of first-quarter GDP figures.  Bundesbank President Weber today warned that GDP contracted more sharply than the 8.2% at a seasonally adjusted annual pace (saar) recorded in the final quarter 2008.  That comment actually understates how bad the number will be.  There […] More

Central Bank Watch

Three Asian Central Banks Announce Interest Rate Decisions

May 12, 2009

The Bank of Korea left its key 7-day repo rate at 2.0% for a third straight month but pre-announced that an accommodative stance will be maintained for the time being.  The rate earlier had been cut twice by a total of 100 basis points last October and once each by 25 bps in November, 100 […] More

U.S. and Canadian Trade

May 12, 2009

The U.S. trade deficit in the first quarter was 49.6% smaller than a year earlier on the broad measure that includes services as well as merchandise.  Commerce with the Pacific Rim, which accounts for 61% of the remaining U.S. deficit, was responsible for only 17% of the improvement in trade between 1Q08 and 1Q09.  The […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Dollar Lower Despite Supportive Bernanke Remarks

May 12, 2009

Fed Chairman Bernanke predicted the dollar would remain the main international reserve currency because the U.S. economy will be strong and the central bank is committed to price stability. The dollar nonetheless lost 1.1% against sterling, 0.7% against the kiwi, 0.6% versus the Aussie dollar, 0.5% against the Canadian dollar and euro, 0.4% against the […] More