Central Bank Watch
No Change in Colombian Base Rate
December 17, 2010
The Central Bank of the Republic of Colombia left its monetary policy rate at 3.0%, the level since a 50-basis point cut last April. That was the only rate change in 2010, but 600 basis points of reduction were implemented during 2009. Prior to an initial rate cut of 50 bps in December 2008, the […] More
Foreign Exchange Insights and Next Week
Next Week
December 17, 2010
The week before Christmas has generally less activity than the week after. Many markets, including the United States, will be shut Friday. Britain is closed the following Monday and Tuesday, and Japan celebrates the Emperor’s birthday on Thursday, December 23rd. There are central bank meetings in Poland, Japan, Hungary and the Czech Republic, and the […] More
Foreign Exchange Insights and Next Week
Currency Crystal Ball Gazing: December 2010
December 17, 2010
The tempting prediction for next year is that the dollar will appreciate against the euro, especially since it remains roughly 10% weaker than its life-time average value of 1.1891 per EUR. The timing and end of the euro’s identity crisis remain unclear. Against the yen, the dollar touched sequentially lower calendar year highs and lows […] More
New Overnight Developments Abroad - Daily Update
Muted Reaction to Large Downgrade of Irish Credit Rating
December 17, 2010
Moody’s credit rating service knocked down Ireland’s rating by five notches to Baa1, just three steps above investment grade, and left the outlook at “negative,” thus signaling the possibility of an additional downgrade. The dollar nevertheless fell 0.5% against the euro and 0.4% relative to the Swiss franc. The move reflects 1) a further improvement […] More
