New Overnight Developments Abroad - Daily Update
Pound Depressed by British GDP Contraction
January 25, 2011
Sterling fell 1.2% overnight against the dollar, which otherwise shows gains of 0.3% against the Canadian and Australian dollars, no change versus the euro, and drops of 0.3% relative to the Chinese yuan and Swiss franc and 0.2% against the yen and kiwi. Stock prices were mixed in the Pacific Rim, with rises of 1.2% […] More
Central Bank Watch
Key Israeli Lending Rate Lifted Another 25 Basis Points
January 24, 2011
The process of gradual interest rate normalization took another step today in a move that analysts mostly anticipated. This was the seventh increase so far but the first in four months. All of the hikes have been by 25 basis points. The first in August 2009 was the initial increase by any central bank following […] More
Central Bank Watch
A Third Hungarian Rate Hike with a Hint of More to Come
January 24, 2011
Officials at Magyar Nemzeti Bank raised the Hungarian Base Rate by 25 basis points for a third straight month and suggested further increases could occur in the future. A statement from the central bank reiterated a need to guard against rising inflation expectations because CPI inflation has been well above the 3% target and likely […] More
New Overnight Developments Abroad - Daily Update
Dollar Recoups Some Losses
January 24, 2011
The dollar reversed a small part of last week’s losses, gaining 0.5% against the euro, 0.4% relative to the yen, and 0.3% versus sterling and the Canadian dollar. The dollar also eased 0.1% against the Swiss franc and the Australian and Canadian dollars. In the wake of President Hu’s trip to America, the yuan is […] More
Foreign Exchange Insights and Next Week
Next Week
January 21, 2011
During the week to January 28, 2011, central banks will be making interest rate policy announcements in the United States, Japan, Norway, New Zealand, India, Hungary, Hong Kong, Israel, and Malaysia. Minutes from the last policy meetings of the Bank of England and the Bank of Japan get released, and Japan’s central bankers release their […] More
Foreign Exchange Insights and Next Week
Euro Off to Good Start This Year
January 21, 2011
A firmer euro is arguably the most significant currency market story of this young year. The euro had gained 5.2% against the dollar at today’s high from its low two weeks ago. The high of $1.3578 also constituted the strongest level since just before Thanksgiving. On the euro’s crosses, the euro has recovered as much […] More
New Overnight Developments Abroad - Daily Update
German IFO Survey Lifts Euro
January 21, 2011
The euro advanced as high as $1.3569 overnight, its strongest value since November 23, and shows a net gain of 0.4% against the dollar. The U.S. currency is also down 0.4% against the Swiss franc, 0.2% versus the yen and 0.1% against the Canadian dollar. The greenback shows no change relative to the yuan, Aussie […] More
Larry's Blog
Obama Halftime Report
January 20, 2011
Aside from being the fiftieth anniversary of the Kennedy inaugural, today marks the midpoint of President Obama’s four-year term and thus a good time to compare the U.S. economic performance under his stewardship with how the economy did in the first two years of previous presidencies. I checked five criteria: real GDP growth, total CPI […] More
Larry's Blog
Looking Back a Half Century at the Kennedy Inaugural Address
January 20, 2011
Being a baby boomer is central to my identity. For those of us in the earliest wave of that generation, the Kennedy inauguration towers in the pantheon of select memories from our youth. The pageant awakened us baby boomers to a large world out there and to America’s special role at a critical historic moment. […] More
Central Bank Watch
No Change Made in South African Reserve Bank’s 5.5% Repo Rate
January 20, 2011
South African monetary officials, who meet less frequently than most central bank policy boards, implemented three rate reduction in 2010 including its prior two meetings in July and November. These had augmented 500 basis points of relief from December 2008 to August 2009. All that easing was made possible by falling inflation, which at 3.5% […] More
