Foreign Exchange Insights and Next Week
Administrative Notice
June 4, 2009
Reporting on this site through Tuesday, June 9 will be light and Foreign Exchange Insights will not appear until June 12th. In the meantime, a currency market development that bears watching is the negative economic effects of any further and steepening depreciation of the dollar. The widely accepted explanation for the yen’s 9.5% retreat from […] More
Central Bank Watch
Bank of Canada: No Changes and No Surprises
June 4, 2009
The Bank of Canada left its overnight rate target at 0.25%, reaffirmed its conditional pledge not to change such before 3Q10, and again avoided adopting quantitative easing. All of these actions were as expected. The one novel piece of information in the central bank’s statement is a warning that recent hopeful signs such as modestly […] More
Central Bank Watch
ECB Draws Line on Stimulus
June 4, 2009
The ECB Governing Council called key interest rates “appropriate” and left them unchanged including a 1% refinancing rate. The covered bond purchase plan was not expanded beyond the EUR 60 billion announced a month ago, and it will be conducted from July 2009 to June 2010. The EUR 5 billion per month pace is small […] More
Central Bank Watch
Bank of England Makes No Further Monetary Policy Changes
June 4, 2009
As expected, the Monetary Policy Committee kept its Bank Rate at 0.5% and did not expand its Asset Purchase Program further. The program was implemented in March at Gbp 75 billion initially and extended after the May MPC meeting by another Gbp 50 billion to Gbp 125 billion. The last Bank Rate reduction was made […] More
New Overnight Developments Abroad - Daily Update
Overnight Developments Abroad: Awaiting Central Bank Announcements
June 4, 2009
Currency moves reflect less risk aversion, with dollar up 0.6% against the yen but down against everything else. Losses of 0.6% against the Aussie dollar, 0.4% versus the kiwi and sterling, 0.2% relative to the Canadian dollar, and just 0.1% against the euro and Swissy. Stocks were mixed in Asia but up in Europe. Equities […] More
