Central Bank Watch
Surprise Decision from the Bank of Korea
September 8, 2010
South Korea’s seven-day repo rate was left at 2.25%. Even though officials had paused tightening at their previous meeting of August 12 following an initial 25-basis point increase on July 9, most analysts were predicting a second 25-bp hike today. At 2.25% versus a previous cyclical high of 5.25% prior to August 2008, the key […] More
Larry's Blog
On the Swiss Franc, Deutschmark, and Euro
September 8, 2010
An article by Peter Garnham on page 23 of today’s Financial Times makes the claim that the Swiss franc “is increasingly being viewed as the proxy for the old Deutschmark.” Among all paper currencies in times of trouble, investors prefer francs most as a store of value. Historically speaking, a more accurate portrayal is that […] More
Central Bank Watch
A Third Rate Hike in Canada
September 8, 2010
After earlier increases on June 1 and July 20, the Bank of Canada hiked its target overnight rate by 25 basis points for a third time today. Roughly three of every five analysts foresaw that result versus others who anticipated no change. The decision was taken in spite of a downward forecast for projected Canadian […] More
New Overnight Developments Abroad - Daily Update
Festering Concern about Euroland Peripherals
September 8, 2010
Stocks in Germany, France and Great Britain have traded 0.6% lower. Earlier, equities fell by 2.2% in Japan, 1.5% in Hong Kong, 0.8% in Australia, 0.5% in South Korea and 0.4% in Taiwan and New Zealand. The euro recouped 0.2% against the dollar despite provocative warnings from German Chancellor Merkel about her country’s limited patience […] More
