Foreign Exchange Insights and Next Week
Next Week
January 7, 2011
The week to January 14 has only a few scheduled central bank meetings (in Euroland, Britain, and Chile). A considerable body of lower tier economic data is scheduled for release. Japan will be closed by Coming of Age Day on Tuesday, and the Fed Beige book is due on Wednesday. Industrial production figures will be […] More
Foreign Exchange Insights and Next Week
A New Year but the Same Lingering Questions
January 7, 2011
Because of strong seasonal distortions, the weeks on either side of New Year’s Day are a difficult time to get an accurate pulse of currency market sentiment. Against European currencies, the dollar shows a tendency to trade on the back foot in late December and with a renewed spring in its step once early January […] More
Deeper Analysis
U.S. and Canadian Labor Market Trends Compared
January 7, 2011
Employment Growth: Canadian jobs increased 22.0K in December, the same percentage rise as a 167K increase of the U.S. workforce. U.S. non-farm payroll employment climbed 103K, less than half of what market whisper numbers were speculating. Canadian jobs advanced by 2.2% over the past twelve months, more than twice as fast as the 0.9% increase […] More
Central Bank Watch
Peruvian Interest Rate Hike
January 7, 2011
Peru has had one of the fastest-growing economies. So while a sixth rate increase announced late yesterday by the Central Reserve Bank of Peru surprised analysts in its timing, the move made considerable sense. The reference interest rate is now 3.25%, 200 basis points greater than its cyclical low prior to an initial rate hike […] More
New Overnight Developments Abroad - Daily Update
Investors Expecting Strong U.S. Jobs Report
January 7, 2011
EUR/USD slid 0.2% and below the key $1.3000 level ahead of the U.S. monthly labor force survey. Analysts revised up their employment forecasts this week to nearly 200K, and some whisper numbers are approaching 300K. The unemployment rate is seen edging down from November’s 9.8%. The dollar otherwise shows gains of 0.2% against the yen […] More
