New Overnight Developments Abroad - Daily Update
New 2009 Highs For Euro and Swissy Against Dollar
November 25, 2009
The dollar lost 1.3% against the Canadian dollar, 1.1% against the Aussie dollar, kiwi and yen, 0.9% relative to sterling, 0.8% against the euro and 0.7% against the Swiss franc. In the process, the greenback plumbed new 2009 lows of 1.5087 per euro and Chf 1.0017, and it touched its weakest yen level (87.53) since […] More
Larry's Blog
U.S. Healthcare Debate
November 24, 2009
New York Times columnist David Brooks has a piece today that casts healthcare legislation as a choice of two different sets of values, an America that offers more security and better decency or one that retains greater economic vitality, and that indeed is how opponents against changing the present system are generally casting this debate. […] More
Central Bank Watch
Malaysian Central Bank Held Steady at 2.0%
November 24, 2009
Bank Negara’s key rate of 2.0% since last February 24th was declared to be still “appropriate” in a statement released after policymakers met. From a peak of 3.5%, monetary officials only implemented three reductions in all, the aforementioned drop of 50 basis points last February and prior cuts of 75 bps in January 2009 and […] More
Currency Markets in the News
GDP Growth and Unemployment in the United States, Japan and Germany
November 24, 2009
The first, second, and fourth largest nation-state economies of the world have emerged from deep recession, and each recorded an expansion of real gross domestic product in the third quarter of 2009. Previous cyclical higher in GDP were reached in the first quarter of 2008 in the German and Japanese cases and in the second […] More
Central Bank Watch
Rate Cut in Russia, Too
November 24, 2009
The Central Bank of the Federation of Russia reduced its refinancing rate by a further 50 basis points to 9.0%, the third reduction of that amount since September 30. Previous cuts were made on September 15 and August 10 of 25 bps each and on July 13, June 5, May 14, and April 24 of […] More
Central Bank Watch
Colombian Benchmark Interest Rate Sliced 50 Basis Points to 3.5%
November 24, 2009
Banco de La Republica, Colombia’s central bank, implemented a ninth and unexpected rate cut of 50 basis points, citing reduced expected inflation, lower actual inflation at a sub-target 2.7%, and weak economic activity. A drop in retail sales of 7.3% over the last 12 months was the worst outcome since at least 1998, and industrial […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Chinese Stocks Sharply Lower
November 24, 2009
Chinese and other equities fell on new worries that banks will have to raise capital following a report that China’s five largest banks had to submit plans to the authorities. Stocks dropped 3.2% in China, 2.1% in Thailand, 1.9% in Vietnam, 1.5% in Hong Kong, 1.0% in Japan, and 0.7% in Australia. In Europe, however, […] More
Central Bank Watch
Bank of Israel Raised Policy Rate to 1.0% from 0.75%
November 23, 2009
This 25-basis point tightening had not been anticipated and followed no rate change at the September or October central bank meetings. However, this was Israel’s second 25-bp rate hike of the cycle, matching the Reserve Bank of Australia’s two 25-bp increases on October 6 and November 3. Norway’s central bank has lifted its policy rate […] More
Central Bank Watch
Hungarian Central Bank Rate Sliced Another 50 Basis Points
November 23, 2009
Global monetary policies are no longer moving in the same direction. In Hungary, where domestic demand continues to slump significantly and sub-target inflation in 2010 is possible as a result, the Magyar Nemzeti Bank cut its benchmark policy rate on two-week bills by an as-expected further 50 basis points to 6.5%, which is a 41-month […] More
New Overnight Developments Abroad - Daily Update
New Overnight Developments Abroad: Gold Stronger While Dollar and Yen Softness Resumed
November 23, 2009
With Japanese markets closed for Labor Thanksgiving, the dollar and yen moved downward in tandem against commodity-sensitive currencies by 1.3% against the kiwi, 1.2% against the Canadian dollar, and 1.0% against the Aussie dollar. The greenback and yen also lost 0.8% against the euro and Swissy and 0.6% relative to sterling. Traders attributed renewed dollar […] More
