Foreign Exchange Insights and Next Week
The First Six Weeks of 2011 in Forex
February 13, 2011
Major dollar relationships have traded in generally narrow ranges for the most part so far this year. A number of themes have emerged, which in the aggregate have not imparted any cumulating movement to currency markets. Investors are watching The U.S. labor market. While the growth of jobs has remained slow, the unemployment rate and […] More
Central Bank Watch
Bank of Korea: No Rate Hike This Month
February 12, 2011
In January, officials at the Bank of Korea raised their Base Rate by 25 basis points when analysts weren’t expecting a move, and on February 11 they kept the key rate at 2.75% when the market had been looking for a fourth increase of 25 bps. Full transparency doesn’t command to extreme high priority that […] More
Central Bank Watch
A More Hawkish Filipino Monetary Policy Statement
February 12, 2011
Bangko Sentral ng Pilipinas again left its key repo rate at 6.0% and reverse repo rate at 4%. The central bank is one of very few in Asia not to have begun raising rates, and the point is made in a released statement last Thursday that food price inflation has affected overall Filipino inflation by […] More
Central Bank Watch
Bank of England Review
February 12, 2011
The statement released by the Monetary Policy Committee on February 10th fit the usual standard when no policy changes are implemented, stating the decision of keeping the Bank Rate at 0.5% and the asset purchase program limit at GBP 200 billion), indicating when these were last changed (March 2009 and November 2009, respectively), and noting […] More
Foreign Exchange Insights and Next Week
Next Week
February 11, 2011
Many key economies release 4Q GDP data next week. Central banks will be meeting in Japan, Sweden, and Turkey. The Bank of England releases its quarterly Inflation Report, and Bank of Japan reveals its latest assessment of the economy and minutes from a prior policy meeting. Australia’s central bank also will release minutes from its […] More
New Overnight Developments Abroad - Daily Update
Thursday-Friday Roundup
February 11, 2011
The big news of the final two days of this week came from Cairo today, the announced abdication of President Hosni Mubarak after 30 years of dictatorial rule and three weeks of relentless mass protests calling for him to leave. The unrest had generated flight to capital, boosting Treasuries, the dollar and oil prices. Egyptian […] More
Central Bank Watch
Bank of England Preview: Shifting Risks
February 9, 2011
The smart money, which says the Monetary Policy Committee will again elect not to change policy settings, may be whistling past the cemetery. Resistance to a bank rate hike of 25 basis points to 0.75% is diminishing. Minutes from the January 13th meeting revealed lessening comfort with the current policy stance: Two of nine committee […] More
New Overnight Developments Abroad - Daily Update
Asian Stocks Fall as China Reopens
February 9, 2011
The end of China’s week-long Lunar New Year celebration saw equities decline by 1.4% in Thailand and Hong Kong, 1.2% in Indonesia, China, Taiwan and South Korea, and 1.0% in India. The Chinese yuan, which had risen 0.6% during the break, reversed the move and returned to 6.594 per dollar. In other trading, the dollar […] More
Central Bank Watch
Chinese Monetary Policy Tightened Further
February 8, 2011
The People’s Bank of China raised both its one-year lending rate and deposit rate by 25 basis points to 6.06% and 3.0%. Like the prior increase announced on Christmas Day, officials chose a holiday to break the news to the public. An initial rate increase was revealed last October 19th. All three central bank rate […] More
Central Bank Watch
Central Bank of Sri Lanka Leaves Policy Steady After Monthly Review
February 8, 2011
The repo rate had been cut by 50 basis points in November and 25 bps each in December and January but was left unchanged this month at 7.0%. 200 bps of cuts were implemented in the first half of 2010. No rate changes occurred between February 2007 and February 2010. Central bank officials also left […] More
