Central Bank Watch
ECB Preview
February 1, 2011
The Governing Council holds its February meeting this Thursday, a shorter-than-typical three weeks after its prior meeting on January 13. The more hawkish tone adopted in January will not be dropped. A rate increase seems remote but cannot be 100 percent ruled out. The euro economy entered 2011 with decent momentum and above-target inflation. However, […] More
Deeper Analysis
U.S. Manufacturing Outperforming Euro Area By Widening Margin
February 1, 2011
Factory sectors in the United States and Europe each expanded solidly in January. In the table below, a reading of 50.0 represents a neutral figure. The higher a reading is above 50, the faster is the associated rate of growth in manufacturing. Euroland’s purchasing managers index printed at a nine-month high, and Britain’s reading of […] More
Central Bank Watch
No Change in Australia’s "Still Appropriate" Monetary Policy
February 1, 2011
Following the two-month summer interval since the last RBA Board policy meeting, the Official Cash Rate (OCR) was kept at 4.75%, meeting analyst expectations. Seven previous rate hikes, most recently last November and initially in October 2009, were implemented. Australia is one of very few advanced economies not to experience a recession in 2008-09, in […] More
New Overnight Developments Abroad - Daily Update
Lessening Market Impact from Middle East Unrest
February 1, 2011
There was stronger risk appetite today. The dollar has lost 1.0% against the Australian dollar, 0.6% versus sterling and the kiwi and yen, and 0.5% against the euro, which hit a new high for the move of $1.3776. The greenback is also down 0.4% against the Canadian dollar, 0.3% relative to the Swissy and 0.1% […] More
