Foreign Exchange Insights and Next Week
Next Week
October 28, 2011
The FOMC and ECB Governing Council both meet next week, each event offering the possibility but not certainty of new stimulus. Fed Chairman Bernanke will hold a post-meeting press conference, and Mario Draghi will preside over his first ECB press conference. Central bank interest rate decisions will also be made by the Reserve Bank of […] More
Foreign Exchange Insights and Next Week
Lessons from an Eventful Week
October 28, 2011
In the final week of October, Euroland leaders at least managed to agree on something, but the substance of the agreement left virtually all analysts still very concerned about the region. A significantly stronger U.S. growth rate in 3Q than the first half was meanwhile confirmed. Quantitative easing by the Bank of Japan was expanded, […] More
New Overnight Developments Abroad - Daily Update
Euphoria Dissipating
October 28, 2011
Markets today show a lack of follow-through after Thursday’s euphoric relief rally. The dollar recovered 0.4% against the Australian dollar, 0.3% versus the kiwi and Swissie, and 0.1% against the euro. The greenback has slipped 0.1% against sterling and the yen and is steady against the loonie and yuan. Asian stocks enjoyed further sizable gains […] More
Central Bank Watch
Bank of Japan
October 27, 2011
On a day that belonged to Europe, the Bank of Japan made some news of its own. The 0.0-0.1% target range for the overnight money rate was retained. Quantitative easing was expanded by another five trillion yen. New quarterly macroeconomic forecasts revised downward projected growth and core inflation. Without abandoning the broad framework of moderate […] More
Central Bank Watch
Swedish Riksbank Keeps Interest Rate in Pause Mode at 2.0%
October 27, 2011
After seven consecutive 25-basis point increases from June 2010 through July 2011, the Riksbank’s Executive Board left the repo rate at 2.0% after its September meeting and did the same today. At both meetings, officials also flattened their forecast of the future path for their repo rate, which now allows for increases of 50 basis […] More
New Overnight Developments Abroad - Daily Update
Euroland Leaders Found Some Common Ground… Risk Assets Higher
October 27, 2011
Stocks rallied in relief. In Europe, the German Dax and Paris Cac are 4.0% and 4.2% higher. German Chancellor Merkel and French President Sarkozy will be speaking later today. The British Ftse has so far climbed 2.4%. In the Pacific Rim, equities advanced by 3.3% in Hong Kong, 2.8% in Singapore, 2.5% in Australia, 2.3% […] More
Central Bank Watch
2.5% New Zealand Official Cash Rate Held Steady for Fifth Time in a Row
October 26, 2011
As with decision-makers at other central banks, the uncertainty of the euro debt crisis remains the 500-pound gorilla in the room where New Zealand monetary authorities deliberate. It has dampened world demand, lifted bank financing costs, and harmed business and consumer confidence. Prudence at this juncture argued again for waiting and watching for better guidance. […] More
Deeper Analysis
Bank of Canada Quarterly Monetary Policy Report
October 26, 2011
The October Report contains more detailed information than was included in Tuesday’s statement following a decision to leave the Bank of Canada’s overnight target rate unchanged at 1.0%, its level since early September 2010. Here are the most interesting revelations. Total and core CPI inflation, which in 3Q11 were 3.0% and 1.9% greater than a […] More
New Overnight Developments Abroad - Daily Update
E-Day
October 26, 2011
Results from today’s summit in Brussels of Euroland leaders are not expected until very late. The summit is seen as a do-or-die moment for the common currency. Even if officials managed to agree to more than investors anticipate, cynicism remains high that things will still fall apart in the future. The dollar rose 1.1% against […] More
Larry's Blog
Currency Thoughts Selected as a Top Forex Blog
October 25, 2011
In a review carried in Money & Business of best forex blogs authored by James Dempsey of The Writers Network, Currency Thoughts was selected as one of the three top foreign exchange trading blogs. Copyright 2011, Larry Greenberg. More
