Foreign Exchange Insights and Next Week
Next Week
December 31, 2009
Central banks in Britain, South Korea, Indonesia, and Romania hold interest rate meetings in the first week of 2010. None are likely to change policy, and the Bank of England is not expected to adjusted its asset buying ceiling, either. Minutes from the December FOMC meeting will be released, and at least six top Fed […] More
New Overnight Developments Abroad - Daily Update
Decade Ending With a Blue Moon
December 31, 2009
On the final day of the decade, the dollar has fittingly faded, losing 0.8% against the Canadian dollar, 0.7% each against sterling, the Aussie dollar, New Zealand dollar and Swiss franc, and 0.5% relative to the euro. Market sentiment had turned pro-dollar lately. The yen is also comparatively soft, edging just 0.1% higher against the […] More
Deeper Analysis
Oil Prices Rocketed in the 00s
December 30, 2009
The past decade saw a quantum leap in oil price pressures. When oil and other commodity prices shot up in the 1970s, central banks lost control of inflation. Although general goods and services prices were very subdued nonetheless over the past decade, so too was economic growth. In the United States, for example, inflation of […] More
Foreign Exchange Insights and Next Week
Weekly Foreign Exchange Insights: Yearend Edition
December 30, 2009
The dollar is winding up 2009 on a bid note. Except in the unlikely event of a major decline on the final trading day of the year, this will be only the second time in the past eight years in which the U.S. currency rose against the euro between mid-December and yearend. The greenback’s firm […] More
New Overnight Developments Abroad - Daily Update
Stocks Lower in Japan, Germany, France and Britain
December 30, 2009
The dollar firmed 0.5% against the Canadian dollar, 0.3% relative to sterling, 0.2% versus the yen and 0.1% against the euro and Swiss franc. The Aussie and New Zealand dollars are unchanged against the buck. German and Japanese markets will not be open tomorrow. Stocks fell 0.9% in Japan, 1.0% in Thailand, 0.3% in India […] More
Larry's Blog
Farewell to the Noughties
December 29, 2009
The decade from 2000 to 2009 was an age of irony and mis-framed missions. Within countries and between them, diplomatic relations became more fractious. As in the century left behind, ideological thinking and the corrupting force of power in various different manifestations hampered economic development. The period is ending with unfinished business on many fronts. […] More
New Overnight Developments Abroad - Daily Update
Australian and New Zealand Dollars Strengthened
December 29, 2009
The U.S. dollar traded down 1.0% against the Australian dollar and 0.9% relative to the kiwi. The greenback also lost 0.3% against the euro and Swiss franc and 0.1% against the Canadian dollar. The yen edged 0.1% lower, and sterling is steady. Stocks closed flat in Japan and off 0.8% in South Korean, but other […] More
Central Bank Watch
A Third Rate Hike For Israel
December 28, 2009
The Bank of Israel has matched its Australian counterpart for the most tightening moves this year, three. Israel’s central bank had previously lifted its policy rate from a floor of 0.5% to 0.75% on August 24 and 1.0% on November 23rd. Today’s 25-bp hike to 1.25% still leaves the rate level 300 basis points below […] More
New Overnight Developments Abroad - Daily Update
The Week of December 28 – January 1st
December 28, 2009
The market’s main inspiration a week ago was that the inverse relationship between the dollar and equities had broken down, as each were doing well. Since the close on December 21st a week ago, the dollar on balance depreciated 1.8% against the Canadian dollar, 1.1% against the Swiss franc, 0.8% against the euro, 0.7%, and […] More
Deeper Analysis
Japan Released Many Indicators on Christmas Day
December 26, 2009
For market old-timers, Friday offered rememberances of Christmas 1989 when the Bank of Japan raised reference interest rates. The Y92.3 trillion fiscal 2010/11 budget was approved, and a considerable number of economic indicators were released. Unemployment rose a tenth to 5.2% from 5.1%. Jobs fell 2.0% from a year earlier, and the ratio of job offers […] More
