New Overnight Developments Abroad - Daily Update
Continuing Retreat of Swiss Franc
August 15, 2011
A press report that the Swiss National Bank is seeking permission from the government for it to impose a CHF/EUR ceiling generated further depreciation in the franc, which at overnight lows of 0.8000 per dollar and 1.1460 per euro was 11.7% and 12.1% below last Tuesday’s highs. Share prices in Asia and Europe overnight were […] More
Deeper Analysis
Japanese 2Q GDP Better than Forecast
August 14, 2011
Japanese real GDP contracted 1.3% at an annualized rate (SAAR) between 1Q and 2Q, half as much as expected and less than the drops of 2.5% in 4Q10 and 3.6% in 1Q11. Real GDP was 1.0% lower than a year earlier, the same on-year drop as in 1Q11 and below forecasts of minus 2.5%. Nominal […] More
Larry's Blog
Credentials
August 14, 2011
Voters have a right to know a lot more than they do about the qualifications of political leaders making decisions on economic policy. A wide spectrum of visions exists about how best to achieve an improving standard of living without documentation of how different candidates came to hold such views. Far less rigor is demanded […] More
Foreign Exchange Insights and Next Week
Next Week
August 12, 2011
An Icelandic interest rate policy meeting is scheduled next week in Iceland, and minutes from this month’s Australian and British policy meetings will be published. Federal Reserve officials with public speaking engagements include Lockhart, Fisher, Dudley and Pianalto. Many important data releases are on tap. The United States will be reporting the PPI, CPI and […] More
Foreign Exchange Insights and Next Week
What Can Markets Do for an Encore?
August 12, 2011
It’s fanciful to dream that uncertainty will disappear and restore the old normal. Recent times have been distinguished from most times not so much by an abundance of uncertain areas but by the severity of reasonably possible outcomes. European leaders are in the fight of their lives to preserve the European Monetary System and broader […] More
New Overnight Developments Abroad - Daily Update
Swiss Franc Retreats Further
August 12, 2011
In the face of a multi-pronged official attack on its strength, the Swissy continued to weaken overnight, touching 1.1050 per euro, 8.9% below Tuesday’s peak of 1.0071. The short selling came in the face of negative Swiss interest rates and rumors that ECB and SNB officials aim to peg the CHF/EUR relationship near 1.15. The […] More
Central Bank Watch
Peru: Another Central Bank Deterred by Global Uncertainty
August 11, 2011
Like their Norwegian and South Korean counterparts earlier this week, officials at the Central Reserve Bank of Peru left their key reference rate unchanged at 4.25%, concluding that prudence would be the better part of valor. In their statement of explanation, the authorities cited some evidence of slowing Peruvian growth and the increased uncertainty in […] More
Central Bank Watch
Bank of Korea More Guarded
August 11, 2011
As at other central banks, Bank of Korea monetary authorities are not able to normalize interest rates as quickly as domestic economic conditions would seem to warrant, and the reason is external risks. U.S. and European growth prospects have worsened, and South Korean financial markets have not been immune from the turbulence in other countries. […] More
Deeper Analysis
Today’s North American Data
August 11, 2011
More evidence of a softening Western Hemisphere economy has surfaced. Trade flows contracted in June in both the United States and Canada. U.S. consumer confidence sank to a 3-month low last week, but the latest data on unemployment insurance claims were better than anticipated, providing a rare bright spot. Unlike U.S. housing prices, their Canadian […] More
New Overnight Developments Abroad - Daily Update
Dollar Looking to Stocks for Direction
August 11, 2011
The Swiss franc fell back 1.9% against the dollar and has lost 4.6% since its record peak on Tuesday. The yen, in contrast, rose 0.4% and got within six pips of this year’s 76.25 record high. The dollar dropped 0.4% against the Chinese yuan, which reached a record high of 6.3895 per dollar in overnight […] More
