Archive for January 5th, 2012

Foreign Exchange Insights and Next Week

Opening Currency Market Act of 2012

January 5, 2012

The dollar started 2012 on a high note just as it did in the first week of three of the past five years.  Between yearend and January 7, the dollar appreciated against the euro by 3.6% in 2011, 2.5% in 2009 and 1.4% in 2007.  It was unchanged in the first week of 2010 and […] More

Deeper Analysis

Service-Sector PMI Spread Narrowed in December But U.S. Retained a Large Composite Advantage

January 5, 2012

The U.S. Minus Euroland service sector purchasing manager differential fell to a four-month low of +3.8 points.  Such had crested at 6.5 points in October.  As in the case of manufacturing, the U.S. index was above 50, signifying a positive trend in activity but at a less rapid pace than in October or November.  In […] More

Central Bank Watch

A Second Romanian Interest Rate Cut

January 5, 2012

The National Bank of Romania Board members have sliced the monetary policy reference rate to 5.75% from 6.0% but left reserve requirements unchanged.  This second reduction following a similar 25-basis point drop on November 2, 2011 has been justified as a prudent response to lower CPI inflation and negative implications for growth and financial market […] More

New Overnight Developments Abroad - Daily Update

Relentless Concern about Europe

January 5, 2012

Risk aversion is persisting.  It can be seen in an 0.8% overnight drop of the euro against the dollar.  The euro traded below its 2011 low.  The dollar also gained 0.8% against the Swissie and kiwi, 1.1% versus the Australian dollar, and 0.6% vis-a-vis the loonie and sterling.  The greenback even edged 0.1% higher against […] More