Foreign Exchange Insights and Next Week
Next Week
March 12, 2010
Central banks will be in the main spotlight next week as policy meetings are scheduled in the United States, Japan, Turkey, Mexico, Chile, and Brazil. The BOJ will probably ease quantitatively, and Brazil’s key Selic rate is likely to get raised. In addition, Bank of England minutes should reveal another unanimous decision. The BOJ meeting […] More
Foreign Exchange Insights and Next Week
Pause in the Dollar
March 12, 2010
Upward pressure on the dollar has lost steam. As of 16:00 GMT today, the U.S. currency was showing losses for the week of 1.3% against the Canadian dollar and Swiss franc, 0.9% against the euro and Australian dollar, 0.6% relative to the kiwi but only 0.2% versus sterling. Previous dollar strength had been mostly at […] More
Central Bank Watch
Central Reserve Bank of Peru Drops Hint of Coming Rate Increase
March 12, 2010
Peru’s central bank reference interest rate was left by officials at 1.25% after this week’s policy meeting. It has been at that level since a 75-basis point reduction last August. That had been the seventh consecutive monthly easing from a peak of 6.5% in the beginning of last year. Other reduction amounts were 25 bps […] More
Deeper Analysis
Contrasting Canadian and U.S. Labor Markets
March 12, 2010
It’s not just Europe and Asia which have experienced milder labor market recessions than the United States. So has America’s neighbor to the north. Between February 2009 and February 2010, the unemployment rate climbed 0.5 percentage points net in Canada to 8.2%, while U.S. joblessness increased 1.5 percentage points to 9.7%. 38% of Canada’s 417K […] More
New Overnight Developments Abroad - Daily Update
Strong Euroland and Japanese Industrial Production Weakens Dollar
March 12, 2010
The dollar has lost 0.8% against the Swiss franc, 0.7% relative to the euro, 0.6% against the pound, 0.4% versus the Australian and New Zealand dollars, 0.2% against the Canadian dollar and even 0.1% against the yen. Speculation that the Bank of Japan is poised to increase special liquidity support introduced three months ago sent […] More
