Archive for July 16th, 2009

Central Bank Watch

A Larger-Than-Forecast Turkish Rate Cut

July 16, 2009

The Central Bank of the Republic of Turkey cut its main overnight borrowing rate to 8.25% from 8.75%.  That was the third consecutive monthly reduction of 50 basis points and the ninth consecutive month in which policy was eased.  The cumulative decline equals 850 basis points, and more lie ahead.  At 8.25%, the new rate […] More

Canadian Manufacturing Still in Woeful Shape

July 16, 2009

A 6.0% monthly plunge in factory sales in May was the largest drop since January and left the level at a 10-1/2 year low.  In the ten months between July 2008 and May, sales plunged 28.8%, while new orders sank by a steeper 37.7%.  The inventory:sales ratio is still rising and, at 1.64, has climbed […] More

U.S. Capital Flows, Unemployment, and Fed Policy

July 16, 2009

U.S. capital flows with foreigners were surprisingly weak in May, according to the latest monthly Treasury Department figures.  Net transactions involving long-term securities generated an outflow of $19.8 billion, puzzling analysts who had anticipated an inflow of roughly the same amount.  As a result, the first five months of 2009 saw a net inflow of […] More

New Overnight Developments Abroad - Daily Update

New Overnight Developments Abroad: Chinese Statistical Releases Show Recovery Will Negative Inflation

July 16, 2009

No continuity in foreign exchange movements from day to day.  Dollar and yen are higher today after falling early Wednesday.  The greenback rose 1.1% against the kiwi, 0.7% against the Australian dollar, 0.6% against the loonie, 0.3% against sterling and 0.2% against the euro and Swissy.  The yen has gained 0.6% against the dollar and […] More