Central Bank Watch
Bank of England Preview: Status Quo
October 7, 2009
The conventional wisdom is that the Bank of England will also not modify current policy. Investors should bear in mind that the corporate culture of the 9-person Monetary Policy Committee emphasizes independent thinking in contrast to consensus-building at many other central banks like the ECB or Fed. With decisions based on a strict voting of […] More
Central Bank Watch
ECB Preview: No Changes Anticipated
October 7, 2009
The ECB will not modify its 1.0% refinancing rate tomorrow. The policy announcement is due at 11:45 GMT. 325 bps of reduction were squeezed into seven moves, beginning exactly one year ago and ending with a 25-bp cut on May 7. I expect ECB President Trichet to reiterate that the present stance is “appropriate” and […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Focus on Commodities
October 7, 2009
Gold is in uncharted waters and behaving so. With a further 0.8% increase to $1047.80 per ounce, gold prices have risen $48.60 since Thursday. Oil firmed 0.6%. The U.S. dollar declined against commodity-sensitive currencies, with losses of 0.4% against the loonie, 0.3% against the kiwi and 0.2% versus the Aussie dollar. Japanese Finance Minister Fujii […] More
