Central Bank Watch
Bank of Mexico Policy Unchanged
January 15, 2010
The central bank as expected left its overnight interbank funding rate steady at 4.5%, where such has been since mid-July. Seven cuts totaling 375 basis points from a peak of 8.25% were implemented in 2009: 50 bps in January, 25 bps in February, 75 bps in March, April and May, 50 bps in June and […] More
Foreign Exchange Insights and Next Week
Next Week
January 15, 2010
The week to January 22 has a light schedule of central bank meetings, just the Bank of Canada on Tuesday. Officials there have already pledged not to raise rates before the middle of this year. The Bank of Japan holds a quarterly branch managers meeting and releases the results of a loan officer survey. The […] More
Foreign Exchange Insights and Next Week
It Won’t Be Only About Greece
January 15, 2010
Dollar movement in the second week of 2010 remained choppy. Net changes against other major traded currencies were mostly minor including a 0.3% uptick against the euro as of 17:50 GMT on Friday. The exceptions involved drops of 1.5% against sterling and 2.1% relative to the yen. A quite different and more pessimistic impression about […] More
New Overnight Developments Abroad - Daily Update
Greece Default Fears Send Euro Lower
January 15, 2010
Trichet’s unbending remarks that Greece will not get special policy favors to address its huge government deficit has weighed sharply on the euro, which, along with the Swiss franc, fell 0.8% against the dollar. One wonders if one intent of Trichet’s stance on Greece was in fact to temper the euro. The dollar also gained […] More
