Central Bank Watch
Bank of Israel Unexpectedly Cuts Key Interest Rate
October 29, 2012
Israel’s main central bank interest rate was sliced by 25 basis points in the first reduction since June and the fifth such move since September 2011. The 2.0% rate level hasn’t been this low since January 2011. If no further rate change is announced in November or December, this will be the fourth straight calendar […] More
New Overnight Developments Abroad - Daily Update
Storm Front Coming
October 29, 2012
A monster storm will slam into the Northeast of the United States today. There will be no equity trading in New York City today, and bond markets close at noon. Wall Street may be under water from the storm surge. Damages from wind and flooding figure to run into the billions of dollars. Power outages […] More
Foreign Exchange Insights and Next Week
Next Week
October 28, 2012
A week for the ages lies ahead. As a bridge from October to November, a huge number of indicators get released, many like the U.S. monthly labor market report and a variety of national purchasing manager surveys that often move markets. It’s the final week before the U.S. election. The U.S. east coast is bracing […] More
Central Bank Watch
Swedish Riksbank Retains Accommodative Monetary Stance
October 25, 2012
The Executive Board’s latest economic review of Sweden resulted in downward revisions to projected growth and inflation for 2012, 2013, and 2014 as shown below. Inflation will continue to undershoot the 2% target by a wide margin next year because of “low cost pressures in recent years and earlier strengthening of the krona.” 2012 […] More
Central Bank Watch
Filipino Central Bank Interest Rates Cut by 25 Basis Points
October 25, 2012
Policymakers at Bangko Sentral ng Pilipinas have reduced the overnight borrowing and lending rates by 25 basis points to 3.5% and 5.5%, respectively. This easing follows three similarly-sized adjustments made this year in January, March and July. A new statement calls the inflation outlook “manageable”, with the 12-month CPI projected to stay within the 3-5% […] More
New Overnight Developments Abroad - Daily Update
Sterling Buoyed by Unexpectedly Strong British GDP Data
October 25, 2012
Sterling strengthened, and the yen weakened. The pound gained 0.6% against the dollar. The yen is 0.4% softer and is holding an 80 per dollar handle. The U.S. currency has fallen 0.3% against the Canadian, Australian and New Zealand dollars and by 0.2% relative to the euro and Swiss franc. EUR/USD is hovering around 1.3000. […] More
Central Bank Watch
Reserve Bank of New Zealand Keeps 2.5% Official Cash Rate
October 24, 2012
For the 22nd time in the last 25 interest rate policy meetings dating back to June 2009, the RBNZ’s Official Cash Rate was left unchanged at 2.5%. The three exceptions were two hikes of 25 bps administered in June and July of 2010 and a post-earthquake cut of 50 bps in March 2011. 2.5% matches […] More
Central Bank Watch
The FOMC Statement: No Surprises or Market Reaction
October 24, 2012
The October 24th statement from U.S. monetary officials made only a few generally inconsequential changes to the previous September 13 statement. The final meeting of 2012 on December 11-12 promises to be more newsworthy. By then, a lame-duck congress will be dealing with the fiscal cliff, and the identity will be known of the next […] More
Deeper Analysis
Ten Highlights of Bank of Canada Monetary Policy Report
October 24, 2012
Notwithstanding next year’s fiscal drag, the United States is expected to enjoy a huge economic growth advantage by 2014. U.S. GDP then is projected to expand 3.2% versus GDP growth of 1.0% in the euro area and 1.1% in Japan. Chinese growth of 7.7% will remain depressed to average Chinese growth over the past two […] More
Central Bank Watch
FOMC Preview
October 24, 2012
Today’s FOMC announcement, due at 14:15 EDT (18:15 GMT), is not expected to contain market-moving news for a variety of reasons. Number one, a press conference has not been scheduled. Number two, Fed officials do not want to appear politically motivated by acting so near to the presidential and congressional elections. Indeed, the voting results […] More
