Central Bank Watch
Colombia’s Unexpected Rate Cut
May 3, 2010
Colombian bond yields and the peso fell today following Fridays tenth rate cut by the Bank of the Republic of Colombia since December 2008 but first since November 2009. The resumed easing cycle was not expected by analysts and justified by monetary authorities on the grounds of evidence of falling actual and expected inflation. Core […] More
Central Bank Watch
Sixth Australian Rate Hike Likely Tuesday But Not Assured
May 3, 2010
In the case of the Reserve Bank of Australia, data trends tend to be a better guide than spoken words to monetary policy decision-making. The central bank cash rate was previously raised by 25 basis points each last October, November, December, March and April from a cyclical low of 3.0% to 4.25% currently. Rhetoric has […] More
Deeper Analysis
Marginal Narrowing of U.S. Minus Euroland Factory PMI Spread
May 3, 2010
Activity in manufacturing was robust last month in both the United States and euro area according to their respective purchasing manager surveys. In a scale where readings above 50 connote increasing speeds of expansion, the United States reported a score of 60.4, 0.8 points better than in March, and Euroland’s score improved a full point […] More
New Overnight Developments Abroad - Daily Update
Greek Bailout Hasn’t Ended Fear of Contagion
May 3, 2010
The dollar rose overnight by 0.7% against the Swiss franc, 0.6% relative to the euro, 0.3% against sterling and 0.1% versus the yen. Commodity-sensitive currencies are stronger. The kiwi is up 0.3% against the U.S. dollar, while the Canadian and Australian dollars firmed 0.2%. Markets were closed in Japan for Constitution Day, China for Labor […] More
