New Overnight Developments Abroad - Daily Update
An Ugly Monday: Confidence Drops that Euro Crisis Will Be Contained
July 23, 2012
The situations surrounding Greece and Spain have deteriorated. This is the week that the EU/IMF/ECB creditors of Greece are to assess if that country is meeting is bailout targets. Ahead of such, Germany’s Economics Minister and Vice Chancellor Roestler expressed grave doubt that Greece will satisfy its conditions. Greek Prime Minister Samaras compared the Greek […] More
Central Bank Watch
Bank of Mexico: Unchanged Benchmark Interest Rate of 4.5%
July 22, 2012
The key Mexican central bank rate has been at 4.5% since a 25-bp cut in July 2009. 375 basis points of easing were implemented overall in the first seven months of 2009 until the authorities were able to detect signs of recovery. Mexico remains in an expansionary phase of its business cycle. Officials reaffirmed their […] More
Foreign Exchange Insights and Next Week
Next Week
July 20, 2012
Central bank interest rate policy meetings are scheduled next week in Israel, New Zealand, Hungary, the Philippines and Thailand. U.S. data to be reported feature the first estimate of second-quarter GDP and include the preliminary manufacturing purchasing managers index, the Chicago Fed National Activity index, the K.C. and Richmond Fed manufacturing indices, the FHFA home […] More
Foreign Exchange Insights and Next Week
Euro Continuing to Grind Lower
July 20, 2012
The relentless debt, growth, and banking crisis in the euro area has subjected the euro to a grinding downtrend but not a panicky sell-off. The trade-weighted effective nominal euro index published on the ECB web site lost just 0.1% between July 13 and July 20. It has fallen 2.3% so far this month, 5.4% since […] More
New Overnight Developments Abroad - Daily Update
Share Prices Ending Week on Softer Note
July 20, 2012
The calendar for data releases today is particularly thin for a Friday. Not much else is going on. Thursday’s U.S. data showing higher-than-expected weekly jobless claims of 386K, a 0.3% decline in the index of leading economic indicators, a third straight negative reading on the Philly Fed manufacturing index, and a 5.4% drop in existing […] More
Central Bank Watch
Central Bank of the Republic of Turkey
July 19, 2012
Turkey’s Monetary Policy Committee left its key rates steady. In a statement, officials indicated that inflation has been a bit softer than assumed and that a reduced inflation forecast is likely in the future. The central bank’s one-week benchmark repo rate has been at 5.75% since August 2011. The overnight lending rate has been at […] More
Uncategorized
South African Reserve Bank
July 19, 2012
SARB officials surprised markets with their first repo rate change since November 2010, a reduction of 50 basis points to 5.0%. This pre-emptive action came in response to mounting worries that weak European growth will weigh on the South African economy. A statement from the central bank concludes In the light of these developments the […] More
New Overnight Developments Abroad - Daily Update
Slightly Softer Dollar
July 19, 2012
The dollar has fallen by 0.9% and 0.7% against the Australian and New Zealand currencies. Smaller drops have occurred of 0.3% against the loonie and euro and 0.2% versus the yen, Swiss franc and sterling. There has been a 0.1% uptick versus the yuan. Share prices rose 2.0% in Australia, 1.7% in Hong Kong, 1.6% […] More
Central Bank Watch
Bank of Canada Monetary Policy Report Update
July 18, 2012
New forecasts by the Bank of Canada embodied in its Policy Report Update released today show a weaker profile for 2012 than envisaged three months ago. Activity doesn’t strengthen much further next year, either. Even in 2014, GDP is expected to expand by less than 1.5% in the euro area, less than 1.0% in Japan, […] More
New Overnight Developments Abroad - Daily Update
Lower Long-Term Interest Rates and a Focus on Monetary Policies
July 18, 2012
The yields on 10-year German bunds, British gilts and Japanese JGBs edged down by three, two and one basis points. A drop is also signaled in U.S. Treasury yields. Over the month since June 18, German bund and British gilt yields have dropped by 21 and 18 basis points. Treasury and JGB yields are down […] More
