Central Bank Watch
Colombian Central Bank Lops Another 100 Basis Points Off Key Lending Rate
May 29, 2009
The Bank of the Republic reduced the key interbank lending rate to an 11-year low of 5% from 6%, meeting the consensus of a slight majority of analysts. Such is the third straight full percentage point drop following ones on April 30 and March 20th. Cuts of 50 bps were implemented earlier on February 2nd […] More
Foreign Exchange Insights and Next Week
Next Week
May 29, 2009
Unlike the past week, none of the major markets will be closed for holiday during the first week of June. Central bankers hold interest rate meetings in Euroland, Britain, Australia, Canada, Indonesia and Peru; only the latter two are expected to announce interest rate cuts. Data highlights include the U.S. and Canadian labor force surveys, […] More
Foreign Exchange Insights and Next Week
Weekly Foreign Exchange Insights: May 29th
May 29, 2009
The dollar fell substantially in the second half of May but against a different backdrop from the prevailing metric of the last two years in which the ebb and flow of risk aversion had been the dominant Forex determinant. Stocks also looked fragile this week, a factor previously associated with dollar strength, and the yen […] More
Canadian Current Account Deeper in the Red
May 29, 2009
A trade surplus of just C$ 845 million in 1Q09 was the smallest in just over 30 years and down from C$ 12.02 billion per quarter in 2006-8. However, due to a 35% contraction of payments on net foreign investments in Canada, the C$ 9.056 billion current account deficit was not quite as big as […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Dollar Ending May Significantly Lower
May 29, 2009
Stocks rose and the dollar fell as several better-than-expected economic indicators cheered investors that the global recovery may be winding down. Japanese industrial production shot up 5.2% in April, most in 56 years, and is projected to gain 8.8% in May, 2.7% in June, and 9.8% in the second quarter. Japanese factory PMI improved to […] More
