Central Bank Watch
ECB Preview
October 5, 2011
ECB President Trichet’s last monthly conference after eight years at the helm comes at a time of great controversy for the common currency area and the ECB. Economic growth has stalled abruptly. Between March and September, the manufacturing purchasing managers index swung from a robust 57.5 to a contractionary reading of 48.5. That deterioration was […] More
Central Bank Watch
Polish Monetary Reference Rate Left Unchanged as Expected
October 5, 2011
The Narodowy Bank’s key 4.5% interest rate was not changed after this month’s policy meeting. Increases of 25 basis points each were implemented earlier this year in January, April, May and June. 4.5% in the reference rate compares to a pre-recession crest of 6.0% from June to November of 2008. Six ensuing cuts reduced such […] More
Deeper Analysis
U.S. Activity Still Increasing as Ezone PMI Readings Drop Below 50
October 5, 2011
Economic conditions have deteriorated much faster in the euro area than the United States according to September purchasing manager survey results. Readings above 50 imply expansion, while those below 50 signify contracting activity. As scores move further from 50, the rate of change or second derivative becomes more pronounced. A drop in the U.S. services […] More
New Overnight Developments Abroad - Daily Update
Soft Data Out of Europe and a Downgrade of Italy’s Credit Rating
October 5, 2011
The dollar is somewhat weaker, with declines of 0.4% against the kiwi, 0.3% versus the Aussie dollar, 0.2% relative to the yen and loonie, and 0.1% against the euro. The greenback is 0.2% firmer against the Swiss franc and up 0.1% relative to sterling. The yuan is unchanged. Equities fell 2.3% in South Korea, 0.9% […] More
