Deeper Analysis
How’s Quantitative Monetary Easing Working Out?
November 15, 2010
The initiation of a second round of quantitative easing by the Fed at the start of this month sought to boost employment growth and inflation. Officials hope to promote these goals through a variety of channels: By depressing long-term interest rates and thereby stimulating investment and housing. By lifting share prices and creating a wealth […] More
Deeper Analysis
Early Returns on Third-Quarter Growth Paint the United States in a Trailing Position
November 15, 2010
Preliminary estimates for GDP growth last quarter have now been released in the United States, Japan, the euro area, Britain and China. The results explain why the Federal Reserve has already decided to do at least another $600 billion of quantitative easing in contrast to the lack of such a decision by the ECB or […] More
New Overnight Developments Abroad - Daily Update
Continuing Worries About Euro Area Sovereign Debt
November 15, 2010
The dollar has recovered another 0.5% against the euro and yen, 0.4% versus the Swiss franc and sterling, 0.2% against the kiwi and Canadian dollar, and 0.1% against the Chinese yuan. The Aussie dollar bucked this trend with a 0.1% uptick against the greenback. Stocks were mixed in the Pacific Rim. Equities climbed 1.1% in […] More
Central Bank Watch
Malaysian Monetary Policy Remains Paused
November 12, 2010
Bank Negara Malaysia had implemented three consecutive 25-basis point rate hikes at its March, May, and July meetings but, as in September, left its Overnight Policy Rate at 2.75%, still 75 basis points shy of the pre-recession 3.5% level. A statement released today expressed concern about “the potential risks arising from large and volatile capital […] More
Foreign Exchange Insights and Next Week
Next Week
November 12, 2010
As epilogue to the just competed Group of Twenty summit, leaders from the 21 members of the Asia-Pacific Economic Cooperation (APEC) will gather in Yokahama, Japan on the 13th and 14th for talks. And next Friday, the ECB will be hosting its sixth annual central bank conference, its answer to the Fed’s Jackson Hole annual […] More
Foreign Exchange Insights and Next Week
Currency Prospects in the Final Eighth of 2010
November 12, 2010
Many key events have played out. U.S. voters vented extreme displeasure, shifting government leadership sharply away from the Democrats and toward Republican rule. The FOMC unveiled details of a controversial second round of quantitative easing. The British government spelled out what programs will be cut in a dash for deficit reduction. China made an initial […] More
New Overnight Developments Abroad - Daily Update
Asian Stocks Sink on Chinese Rate Hike Speculation
November 12, 2010
Equities tumbled 6.2% in China, 2.1% in India and Indonesia, 1.9% in Hong Kong, 1.6% in the Philippines, 1.3% in Singapore, 1.1% in Thailand, and 1.4% in Japan and Taiwan. Investors suspect the People’s Bank of China may notch up its interest rates further over this weekend. Stocks also fell 0.8% in Australia, 0.6% in […] More
Central Bank Watch
Peru Monetary Policy Extends Pause
November 11, 2010
The Central Reserve Bank of Peru retained a 3.0% reference monetary policy rate after the penultimate monthly meeting of 2010. It had also not tightened in October following five consecutive rate increases totaling 175 basis points from May through September. A statement from officials noted that core and total inflation are near the 2.0% target […] More
Central Bank Watch
Turkish One-Week Repo Rate Remains on Hold
November 11, 2010
Turkey’s 7.0% one-week repo rate was left at 7.0%, it level since a 25-basis point cut a year ago, and analysts expect another year to pass before it is raised. A statement released by the Central Bank of the Republic of Turkey reiterated its expectation that current levels will be maintained “for some time” and […] More
Larry's Blog
Veterans Day 2010
November 11, 2010
Four score and a dozen years after the last shots were fired in the Great War to end all wars, a state of armed conflict has in fact become the norm rather than the exception. Although special days like today are set aside to remember and show gratitude to those who faced personal harm so […] More
