New Overnight Developments Abroad - Daily Update
Lots of Japanese Data and Disappointing Retail PMI Scores
December 28, 2012
The dollar extended its 28-month high against the yen to 86.65. The greenback shows net overnight gains of 0.4% against the euro and Swissie and of 0.1% relative to the yen, kiwi, and sterling. The loonie and Aussie dollar are steady. The yuan is 0.2 higher. Stocks climbed in the Pacific Rim but are lower […] More
New Overnight Developments Abroad - Daily Update
Focus Returns to Fiscal Cliff Negotiations
December 27, 2012
European markets reopened after the Christmas recess. Obama is back from Hawaii, and Congress resumes fiscal cliff talks today. There’s no hope of a “grand bargain.” Analysts are instead looking for some kind of short-term truce to buy time in January, but so far, neither House Republicans nor the Democrats show a predisposition to compromise […] More
Deeper Analysis
Trade-Weighted Movements in the Dollar, Euro, Pound and Yen
December 26, 2012
Using period averages, I compared trade-weighted currency indices this month to December 2011, December 2007 and December 2002 to gauge how the dollar, euro, sterling and yen had changed value over the past year, past five years, and past ten years. Net change in the U.S. dollar amounted to less than 1.0% since end-2011 and […] More
New Overnight Developments Abroad - Daily Update
Falling Yen Trend Extended
December 26, 2012
Much of Europe remains shut for holiday, including Britain, Switzerland, Germany, Italy and Greece. Canada, New Zealand and Australia are also closed for Boxing Day. There were a number of Japanese developments. Shinzo Abe was chosen prime minister by the newly elected parliaments. Since Koizumi, who served several years through September 2006, Japan has had […] More
Central Bank Watch
Israeli Interest Rate Reduction
December 25, 2012
The Bank of Israel’s benchmark policy interest rate was cut Money to 1.75% from 2.0%. Analysts had been split over whether another cut would be implemented or if, as in November, policymakers would choose to change their interest rate. This was the sixth rate reduction of the cycle. Earlier moves, all by 25 basis points, […] More
New Overnight Developments Abroad - Daily Update
Christmas Break
December 25, 2012
Financial markets are closed today throughout Europe and in the United States, Canada, Australia and New Zealand. The most notable exception was Japan, which opened after a three-day weekend observing the Emperor’s birthday. Many places will stay shut for Boxing Day tomorrow, such as Britain, Hong Kong, Australia, Canada, Greece and Italy. In Japan, an […] More
New Overnight Developments Abroad - Daily Update
Nothing Meaningful to Report this Day Before Xmas
December 24, 2012
Most markets were either closed or closed early this Christmas Eve. The U.S. Congress will return on Thursday. Japan observed the Emperor’s Birthday holiday. The dollar and yen are a little softer. The U.S. currency edged up 0.2% against the yen but is down 0.4% relative to the euro, 0.3% versus the Swiss franc, 0.2% […] More
Foreign Exchange Insights and Next Week
Next Week
December 23, 2012
The week of Christmas has a short list of economic data releases and no major scheduled central bank meetings. Japan is the only G7 economy not to celebrate the holiday. Instead, the Emperor’s Birthday holiday will be observed on Monday. Japan is also the only major economy to be releasing several important indicators: corporate service […] More
New Overnight Developments Abroad - Daily Update
Old Worries Return
December 20, 2012
Fiscal cliff talks appear to have bogged down. Greek Finance Minister Stournaras said a Greek departure from the euro zone remains possible and called 2013 a make or break year. Weak revenue growth in Australia led Treasurer Swan to back away from forecasting a budget surplus this fiscal year. There were other signs of general […] More
Central Bank Watch
Norges Bank Leaves Key Policy Interest Rate at 1.5% in Norway
December 19, 2012
Norges Bank in October 2009 became the first European central bank to hike its policy interest rate following the Great Recession. Thanks to cuts of 50 basis points a year ago and a further 25 bps in March 2008, however, the current 1.5% level is on net only 25 basis points above the 2009 trough […] More
