Archive for August 2010

New Overnight Developments Abroad - Daily Update

Markets Focused on Jackson Hole

August 27, 2010

Currencies are marking time ahead of Fed Chairman’s 10:00 EDT address at the Jackson Hole Symposium.  The dollar is unchanged against the euro and up 0.1% relative to sterling, the Canadian dollar and the Swiss franc.  The yen settled back 0.4% but remains pricey at 84.7 per dollar.  The greenback slid 0.3% against the kiwi […] More

Deeper Analysis

Now and Yen

August 26, 2010

Official concern about yen strength is palpable and mounting by the day.  Not since the last intervention in March 2004 has the possibility of government sales of yen been considered so carefully and so publicly.  This week the yen touched a record high of 105.44 per euro, and the currency’s high of 83.59 per dollar […] More

Central Bank Watch

Philippines’ Central Bank Rates Unchanged

August 26, 2010

The overnight borrowing rate of Bangko Sentral ng Pilipinas will remain at 4.0% as analysts expected.  A fairly sanguine statement released today by officials called monetary policy settings, which were last changed in July 2009, appropriate because of contained inflation and anchored inflation expectations.  The CPI is expected to stay confined to its target ranges […] More

New Overnight Developments Abroad - Daily Update

Firmer Equities, Softer Dollar but Not Against the Yen

August 26, 2010

Stocks in the Pacific Rim advanced by 0.8% in Australia and Malaysia, 0.7% in Japan, and 0.3% in China and India.  In Europe, the Paris Cac and British Ftse are 0.7% stronger, and the German Dax has edged 0.4% higher. Dollar/yen is steady at 84.60.  Together the two currencies lost 0.5% against the euro, sterling, […] More

Deeper Analysis

Fading Thrill of Global Growth

August 25, 2010

Economic prospects can change in a hurry.  Revised growth projections released last month by the International Monetary Fund were quite respectable.  The IMF staff was looking for a second straight year of 4%+ global growth in 2011.  Emerging and developing nations would expand almost 7%, three times faster than the advanced nations.  Within the latter […] More

Central Bank Watch

Thailand Gets a Second 25-Basis Point Monetary Tightening

August 25, 2010

The Bank of Thailand’s one-day repo rate was raised to 1.75% following a 25-basis point initial increase to 1.50% announced July 14.  Officials released a statement noting that second quarter GDP growth of 0.2% from 1Q and 9% from 2Q09 had been faster than expected.  Sectors that could have been hurt by earlier political unrest […] More

New Overnight Developments Abroad - Daily Update

Japan’s Finance Minister Elevates Yen Warning

August 25, 2010

The yen is 0.5% lower after Finance Minister Noda warned of “appropriate action” against strengthening yen.  Overnight yen highs were at 83.88 per dollar and 105.86 per euro prior to the remark. The dollar otherwise is unchanged against the euro, Canadian dollar and sterling, off 0.1% relative to the Swiss franc and Australian dollar and […] More

Central Bank Watch

Hungary and Poland Monetary Policy Decisions: No Changes

August 24, 2010

Yesterday the Magyar Nemzeti Bank announced no change in Hungary’s central bank Base Rate of 5.25%.  Fourteen reductions totaling 625 basis points between November 2008 and April 2010 had been implemented earlier.  There have been no hikes yet, but some informal consideration of such appears to have been entertained, since a new statement from officials […] More

Central Bank Watch

Israeli Monetary Policy

August 24, 2010

The Bank of Israel yesterday announced no change in the 1.75% Policy Rate, which had previously been raised by 25 basis points each in August, November and December of 2009 and March and July of this year.  A statement from the Bank called policy still “expansionary” and spoke of an uneven normalization process that now […] More

Central Bank Watch

A 100-Basis Point Icelandic Rate Cut on August 18th

August 24, 2010

A full percentage point reduction of the Icelandic benchmark interest rate to 7.0% last week was twice as much as analysts were anticipating and justified as follows: Lower inflation, lower inflation expectations, a stronger kr√≥na, and the prospect of more rapid disinflation than previously expected provide the scope for a larger interest rate reduction than […] More

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