Foreign Exchange Insights and Next Week
Next Week
May 7, 2010
A critical state election in Germany’s most populous region, North Rhine Westphalia, on May 9 will likely cause the conservative party of Chancellor Merkel to lose its majority in the upper house of parliament, complicating future efforts to legislate structural reforms. Next week also sees the final dash for all members to approve the aid […] More
Foreign Exchange Insights and Next Week
European Currencies Still Looking Pricey
May 7, 2010
The European sovereign debt crisis has revealed several truths. Public officials have thrown varying remedies at the problem, and none has reassured investors more than briefly. The crisis involves decision-making mechanisms and long-term prospects, and it cannot be fixed with a lot of money alone. Like the banking crisis of 2007-09, the response of policy-makers […] More
Central Bank Watch
Peru Becomes Second Latin American Country with a Central Bank Rate Hike
May 7, 2010
The Central Reserve Bank of Peru lifted its reference rate for the first time since September 2008. The increase, like then, was by 25 basis points today to 1.50%, still 500 basis points below the prior cyclical peak. Today’s increase was not expected, and a statement from officials underscored the preventive nature of this action […] More
New Overnight Developments Abroad - Daily Update
Markets Remain Extraordinarily Volatile
May 7, 2010
The dollar advanced 2.0% against the yen and 0.9% versus sterling but has slipped back 1.2% against the euro, 0.8% versus the Aussie dollar, 0.6% relative to the Canadian dollar and Swiss franc and 0.3% against the kiwi. Compared to end-April levels last Friday, the dollar has strengthened over 4% against the euro and pound, […] More
