Foreign Exchange Insights and Next Week
Next Week
May 13, 2011
The third week of May 2011 has a comparatively light data and event calendar. Monthly meetings of monetary policymakers in Japan and Hungary are not expected to result in any changes but will provide an opportunity to peruse latest economic assessments. Minutes from the last FOMC, Australian, and Bank of England meetings will be released, […] More
Foreign Exchange Insights and Next Week
For Better or Worse, Dollar and Stocks Married in an Inverse Relationship
May 13, 2011
The dollar and global share prices tangoed widely and in inverse relation to one another this past week, highlighting a pattern that has been observed much of the time since the financial crisis began. By 16:00 GMT on Friday, the dollar had booked net gains of a little more than 1.0% against the euro, sterling, […] More
Central Bank Watch
Bank of Korea Fails to Tighten Policy
May 13, 2011
The Monetary Policy Committee did not hike South Korea’s Bank Rate by 25 basis points as expected, so such instead remains at 3.0% following increases of 25 basis points each last July, November, January, and March. During the Great Recession, three rate cuts were implemented of 100 basis points in August 2008, 175 bps in […] More
New Overnight Developments Abroad - Daily Update
Strong European GDP Reports Lift Euro
May 13, 2011
A squeeze on euro short positions saw the common currency touch an overnight high of $1.4340. In spite of the dollar’s “strong” week, $1.434 was back to last Friday’s close. The dollar has to run to stand still. The greenback at present is down 0.4% against the yen and 0.3% against the euro but shows […] More
