New Overnight Developments Abroad - Daily Update
Some Soft European Data Released
March 28, 2012
The dollar is narrowly mixed this Wednesday, with overnight declines of 0.3% against the yen and 0.2% versus the euro and Swiss franc offset by gains of 0.4% relative to the Australian dollar, 0.2% versus the kiwi and sterling and 0.1% against the loonie. The yuan is unchanged. Share prices slumped 2.8% in China. Elsewhere […] More
Central Bank Watch
Turkish Monetary Policy Rates Unchanged
March 27, 2012
The Central Bank of the Republic of Turkey left unchanged the 5.75% 7-day repo rate, the 11.5% overnight lending rate, which had been cut in February by 100 basis points, and the 5.0% overnight borrowing rate, which has been at that level since August 2011. The 7-day repo rate has been at a record low […] More
Central Bank Watch
Hungary’s Monetary Policy Left Unchanged
March 27, 2012
By majority vote, the Monetary Council of Magyar Nemzeti Bank retained the base rate of 7.0%, its level since a 50-basis point increase in December. That hike culminated a 5-move, 175-bp tightening begun in November 2010. The freeze on policy has occurred despite a greater-than-anticipated acceleration of on-year CPI inflation in Hungary from 3.9% for […] More
New Overnight Developments Abroad - Daily Update
Marking Time Ahead of U.S. Data Releases
March 27, 2012
Remarks by Fed Chairman Bernanke on Monday reaffirming no predisposition to abort the ultra-easy policy stance sooner than implied previously had an electrifying impact on financial markets, boosting the commodities and equities and dampening the dollar and bond yields. The S&P closed at its best level since mid-May 2008. Overnight in the Pacific Rim, share […] More
Central Bank Watch
Bank of Israel: No Change
March 26, 2012
Today’s rate decision, like that in February, was to leave the Bank of Israel’s benchmark interest rate at 2.5%. This was the outcome that most analysts were predicting. The rate was at 0.5% prior to August 2009 but raised by 75 bps over the rest of that year, an additional 75 bps in 2010 and […] More
New Overnight Developments Abroad - Daily Update
Focus Continuing on Europe, and the Mood Remains Apprehensive
March 26, 2012
The dollar climbed 0.6% against the yen but is otherwise narrowly mixed, with losses of 0.3% versus the loonie and 0.1% against the Australian dollar but gains of 0.2% vis-a-vis the euro and Swissie and 0.1% relative to sterling. The dollar was fixed in Beijing at a new post 2005 low of 6.2858 yuan but […] More
Foreign Exchange Insights and Next Week
Next Week
March 23, 2012
Central banks hold credit policy meetings next week in Hungary, the Czech Republic, Israel, South Africa, Romania, and Turkey. Friday is the last day of the calendar quarter and Japan’s fiscal year. Typically, a considerable number of economic indicators are scheduled for release next week. Japan’s data calendar features the Bank of Japan’s quarterly business […] More
Foreign Exchange Insights and Next Week
In Search of New Foreign Exchange Equilibriums
March 23, 2012
Whether the euro looks resilient or weak depends on what comparisons to historical levels are chosen. Intuitively one expects this besieged money to be on the defensive. The Euroland economy is experiencing a recession. The debt crisis is at best in remission as attested by painfully high bond yield spreads with Germany. The Greek problem […] More
New Overnight Developments Abroad - Daily Update
Fragile End to a Fragile Week in Financial Markets
March 23, 2012
The euro is trading 0.4% higher at $1.3252 in spite of new evidence released yesterday that Europe is in recession. The dollar has also declined 0.6% versus the Swiss franc, 0.5% relative to the kiwi, 0.3% against sterling, and 0.2% versus the Aussie dollar. The Canadian dollar is exactly at parity against the greenback, which […] More
Deeper Analysis
When Enough is Not Good Enough
March 22, 2012
After celebrating last week, investors are seeking cover in this one. The catalyst has been various soft data not confined to one region of the world. It is normal and not the exception for economic data to wax and wane, so a batch of softer numbers in earlier decades would have probably been taken in […] More
