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No Posts Friday
August 28, 2009
New Overnight Developments and other posts will not appear later today. Sorry for the inconvenience. More
Foreign Exchange Insights and Next Week
Next Week
August 27, 2009
The last week of summer begins with a Japanese election on Sunday and a British banking holiday on Monday and ends with any early Treasury market closing on Friday ahead of the U.S. Labor Day Weekend. Central bank interest rate policy meetings are scheduled in Australia, Sweden, Indonesia, Euroland, and Brazil, but no changes are […] More
Bonds and Stocks
U.S. Economic Performance Under Different Fed Chairmen
August 27, 2009
There have been only six chairmen of the Federal Reserve System since April 1951. William McChesney Martin was appointed by Truman and served from April 2, 1951 until January 31, 1970 while at starting age of 44 and an ending age of 63. His father had been a central banker, but Martin’s prior experience had […] More
U.S. GDP Growth and Unemployment Insurance Claims
August 27, 2009
U.S. GDP growth last quarter was not revised downward despite a deeper inventory run-off because of offsetting upward revisions to real private domestic demand. A return positive growth in 3Q09 of more than 2.0% remains on track, which is the good news. A long term view of growth is less promising: the trend is toward […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Weak Euroland Money and Credit Growth Data
August 27, 2009
Sterling is weaker, slipping 0.3% against the dollar and more against other currencies. The dollar is down 0.6% against the yen, 0.4% versus the Aussie dollar, and 0.1% relative to the euro and Swiss franc. The kiwi and Canadian dollars are unchanged against their U.S. counterpart. Stocks in the Pacific Rim closed mostly lower on […] More
Currency Markets in the News
More Green Shoots
August 26, 2009
The signs of economic spring are arriving in greater abundance and color, and it’s happening most everywhere. World trade volume rose in June for the first time in 11 months according to a Dutch think tank. Real GDP expanded 1.3% at a seasonally adjusted annualize rate (saar) during 2Q09 in both Germany and France. Euroland’s […] More
Central Bank Watch
Polish Reference Central Bank Rate To Remain at 3.5%
August 26, 2009
As in many countries, Polish monetary policy is on hold after being eased quite substantially earlier. The Narodowy Bank Polski made no change in key interest rates for the third consecutive monthly meeting. No move was expected. There were six cuts between late November and late June, one each of 75 basis points in December […] More
Central Bank Watch
Bank of Thailand Interest Rate Kept Unchanged
August 26, 2009
Thailand’s policy interest rate will remain at 1.25% after the third meeting since being last cut by 25 basis points on April 8th. The decision was expected especially in light of positive second quarter-over-first quarter GDP growth, a development noted in the statement released by the Bank of Thailand. Officials called the current policy stance […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: More Signs of Global Economic Improvement
August 26, 2009
The dollar is mostly up despite some good data, suggesting that risk acceptance play may be ebbing. The dollar has gained 0.6% against the Canadian dollar after Deputy Bank of Canada Governor Lane reiterated that C-dollar strength is a risk factor. The U.S. currency also climbed 0.4% against sterling and the Australian dollar, and 0.1% […] More
Central Bank Watch
Malaysian Monetary Policy Remains on Hold and Appropriately Accommodative
August 25, 2009
Bank Negara’s Overnight Policy Rate was left at 2.0% as expected. This was the fourth consecutive policy meeting to leave policy unchanged. Previously, the rate was cut three times: November 24th by 25 basis points, January 21st by 75 basis points and February 24th by 50 basis points. Malaysia has been in recession with GDP […] More
