Central Bank Watch
FOMC Statement: Further Initiatives Not Expected and Not Delivered
November 2, 2011
Today’s statement from the Federal Open Market Committee acknowledges that growth strengthened last quarter partly on a reversal of temporary factors. But the views are retained that the declining pace of “elevated” unemployment toward the central bank’s desired range will be only gradual and that inflation is likely to “settle, over coming quarters, at levels […] More
Central Bank Watch
FOMC Preview
November 2, 2011
The FOMC will release a monetary policy statement at 12:30 EDT (16:30 GMT), and that will be followed by a Bernanke press conference starting at 14:15 EDT (18:15 GMT). The table below gives the market vital signs when previous FOMC statement were released. There’s been some good news since the last statement on September 21st. […] More
Deeper Analysis
Further Widening of U.S. Manufacturing Advantage against Euroland
November 2, 2011
The U.S. minus euro area manufacturing purchasing managers differential widened for the third consecutive month in October, reaching 3.7 points after a spread of 3.1 points in September, 1.6 points in August and 0.5 points in July. PMI readings above 50.0 connote expanding activity, and scores below that threshold imply contraction. U.S. manufacturing has grown […] More
Central Bank Watch
A Second Rate Hike in Iceland
November 2, 2011
The Sedlabanki’s seven-day collateralized rate has been increased by another 25 basis points to 4.75%. The first such move was implemented on August 17 and followed by a pause at the ensuing policy meeting on September 21. From March 2009 to February 2011, fifteen rate reductions occurred, slashing the key interest rate from 18.0% to […] More
Central Bank Watch
Romanian Monetary Policy Eased
November 2, 2011
Amid Europe’s faltering economic prognosis, a few central banks that had made post-Great Recession rate hikes have cut them, and many other central banks have paused. The National Bank of Romania’s reference rate since May 2010 of 6.25% had constituted the cyclical low, and it is being lowered further now, breaking a string of eleven […] More
New Overnight Developments Abroad - Daily Update
Advent
November 2, 2011
The dollar slipped back 0.7% versus the euro, 0.5% against the Australian dollar, 0.4% relative to the yen and Swissie, 0.3% against sterling and 0.1% versus the loonie. The greenback is unchanged against the yuan and 0.2% firmer relative to the kiwi. Stocks in the Pacific Rim were widely mixed. Gains were posted of 1.9% […] More
