Foreign Exchange Insights and Next Week
Next Week
September 3, 2010
The week to September 10 kicks off with Labor Day holiday closures on Monday in both the United States and Canada. Brazil and numerous Asian countries also celebrate holidays during the week. The week after the U.S. holiday starts the third and final currency market season of the calendar year. Central bank meetings are scheduled […] More
Foreign Exchange Insights and Next Week
Do Flexible Exchange Rates Serve the Public Good?
September 3, 2010
While I was a graduate student in economics specializing in international trade and finance, a hot debate at the cusp between the 1960s and 1970s was whether the world and U.S. economies would be better served by the then-existing monetary system framed around fixed dollar parities or one in which market forces of supply and […] More
Deeper Analysis
Worst U.S. Services Activity Since January, Poorest Compared to Euro Area in Nine Months
September 3, 2010
The Institute of Supply management reported a 2.8-point decline last month in the non-manufacturing U.S. purchasing managers index. At 51.5, such was two points plus weaker than forecast, the lowest reading since January, and below the twelve-month average score of 52.3. Sub-components of the survey like production (54.4) and orders (52.4) revealed slower rates of […] More
Central Bank Watch
Reserve Requirements Hiked Three Percentage Points to 8% in Indonesia
September 3, 2010
Bank Indonesia released a statement after surprising analysts with an increase to 8% from 5% in in reserve requirements, which could herald interest rate tightening before much more time elapses. The benchmark rate was not changed yet, however, and will remain at 6.5% where it’s been since a 25-basis point cut in August 2009. That […] More
New Overnight Developments Abroad - Daily Update
Little Change in the Dollar Ahead of U.S. Jobs Report
September 3, 2010
The dollar edged up 0.2% against the yen and the Swiss franc and by 0.1% versus the Australian and Canadian dollars. The dollar fell 0.3% against the kiwi and by 0.1% against the euro. The greenback is unchanged against the pound and yuan. Market consensus calls for U.S. non-farm payrolls to drop around 100K, but […] More
