Foreign Exchange Insights and Next Week
Next Week
July 27, 2012
A meaty week of central bank events and released economic data lies ahead. Monetary policy decisions will be announced by the Federal Reserve, European Central Bank, Bank of England, Czech National Bank, National Bank of Romania and Reserve Bank of India. The ECB decision on Thursday will be followed by an all-important press conference. The […] More
Deeper Analysis
EUR/USD in the Second Half of the Calendar Year
July 27, 2012
A point made in this week’s Foreign Exchange Insights essay stipulates that a spontaneous depreciation of the euro is unlikely to happen spontaneously in sufficient size as to strengthen the competitiveness of Euroland’s regional economies greatly and thereby save the common currency from a rupture involving more members than just Greece. The euro would need […] More
Deeper Analysis
U.S. GDP — Some Observations
July 27, 2012
Economic growth in 2Q12 of 1.5% annualized was very close to expectations. A 1.5% advance in personal consumption was its weakest pace in a year, and government expenditures (down 1.4%) fell for the eighth consecutive quarter. The drag from net foreign demand and boost from inventory building exactly offset one another last quarter, while nonresidential […] More
New Overnight Developments Abroad - Daily Update
Bundesbank Says Not So Fast
July 27, 2012
After ECB President Draghi yesterday said the central bank will do whatever is needed to preserve the euro, officials at the German Bundesbank reaffirmed their opposition to buying peripheral sovereign debt via the SMP facility. An ECB meeting is scheduled next Thursday. A number of further indications of softer European economic activity emerged in released […] More
