Deeper Analysis
October in Figures
October 31, 2010
The aim of quantitative easing is to depress long-term interest rates, yet sovereign yields mostly rose in October. Three-month euribor rates advanced 14% to pull virtually even with the ECB refinancing rate. Other short-term rates were very steady. In a pattern that has been seen often since the beginning of the financial crisis, stocks (up) […] More
Foreign Exchange Insights and Next Week
Next Week
October 29, 2010
Many markets in Continental Europe will be closed Monday for All Saints Day. At least eleven central banks hold interest rate policy meetings next week: the Fed, ECB, Bank of Japan, Bank of England, Bank Indonesia, Reserve Bank of Australia, Reserve Bank of India, Hong Kong Monetary Authority, Central Bank of Iceland, National Bank of […] More
Foreign Exchange Insights and Next Week
Important Week Ahead for Major Currencies
October 29, 2010
Currency market players long ago marked down the first week of November down on their calendars as one not to be missed. Main events include 1) Tuesday’s mid-term U.S. election, 2) Wednesday’s meeting of the FOMC, 3) central bank meetings scheduled in several other countries, 4) the release of purchasing manager surveys and the monthly […] More
New Overnight Developments Abroad - Daily Update
Awaiting U.S. GDP Today, Next Tuesday’s Election, and QE2 Announcement on Wednesday
October 29, 2010
On this last trading day of October, new concerns about Greece and other Ezone peripherals have depressed the euro by 0.7% against the dollar. The greenback also gained 0.7% against the Australian dollar, 0.5% versus the Swiss franc and 0.2% against the Canadian dollar and sterling. The dollar lost 0.2% against the yen and yuan, […] More
Larry's Blog
Mid-Term Elections: T Minus Five
October 28, 2010
After U.S. voters go to the polls in five days, the composition of the Congress will be flipped on its head or almost so, and that change is expected to usher in two years of stalemate, unlike the activist 111th Congress. Democrats now control 256 seats in the House of Representatives, identical to what they […] More
Central Bank Watch
Bank of Japan Fleshes Out Details of Asset Purchase Program
October 28, 2010
The Bank of Japan held a single-day meeting lasting four hours and 26 minutes in which details were unveiled of the asset purchase program. A unanimous 9-0 decision was made to keep virtual zero interest rates until price stability (core CPI of around 1%) is in sight. This will take years, not months. There was […] More
New Overnight Developments Abroad - Daily Update
BOJ On Higher Alert Against Yen Strength
October 28, 2010
The dollar weakened overnight, with losses of 0.9% against the kiwi, 0.7% versus sterling, 0.6% relative to the euro and Australian dollar, 0.5% against the Swiss franc and yen, and 0.4% versus the Canadian dollar. The Bank of Japan released new quarterly forecasts, changed its meeting schedule, loosened the credit rating of corporate debt it […] More
Central Bank Watch
New Zealand Official Cash Rate Unchanged
October 27, 2010
The Reserve Bank of New Zealand left the OCR rate at 3.0% as it had also done on September 16 following back-to-back increases of 25 basis points each in June and July. A statement from the RBNZ noted some weaker-than-projected data released recently but believes the recovery is intact because of coming support form high […] More
Central Bank Watch
Polish Reference Rate Not Changed But Reserve Requirement Hiked
October 27, 2010
The Narodowy Bank retained a 3.5%, which is the level of the main reference rate since a 25-basis point cut in June 2009 culminated 250 basis points of reduction since November 2008. A statement from Polish central bank officials gave three reasons for not increasing the key interest rate: Limited domestic price and wage pressures. […] More
Central Bank Watch
Norwegian Policy Interest Rate Left at 2.0%
October 27, 2010
As expected, the Norges Bank did not change monetary policy at this time. A released statement implied that further changes are unlikely before March and that the subsequent upward path toward more normal interest rate levels will commence later than assumed in the June Policy Report because inflation since then as been lower than expected. […] More
