Archive for January 25th, 2013

Foreign Exchange Insights and Next Week

Next Week

January 25, 2013

Interest rate policy meetings are scheduled next week in the United States, India, Israel, Hungary, New Zealand and Malaysia.  The FOMC decision on Wednesday will be followed by a Bernanke press conference. The WEF Conference in Davos winds up this weekend.  Then, Aussie markets will be closed Monday to observe Australia Day. The featured U.S. […] More

Deeper Analysis

Inflation in Japan and Canada: Too Little of a Bad Thing

January 25, 2013

Conservatives around the world have been warning since 2009 that heavy doses of monetary accommodation and fiscal deficit spending will lead to an unacceptably large increase of inflation.  The major surprise on the price front in country after country has been lower-than-anticipated inflation.  Analysts and politicians have been hard-wired to believe that inflation is intrinsically […] More

Central Bank Watch

First Danish Rate Increase in 18 Months

January 25, 2013

The Danish National Bank’s key lending rate and certificate of deposit rates were increased by 10 basis points each effective today to 0.30% and -0.10%, respectively.  The previous change in any Danish central bank interest rates was implemented on July 6, 2012, and the last hike in any rates was done July 8, 2011.  Today’s […] More

New Overnight Developments Abroad - Daily Update

New Lows for Yen & Sterling and Highs for Euro

January 25, 2013

Currencies hit new 2013 extremes overnight.  The yen fell as low as 91.03 per dollar and 122.315 per euro.  The euro touched a high of $1.3465, while sterling slipped as low as $1.5746. On balance since the Thursday close, the dollar rose 0.6% against the yen, 0.2% versus the loonie, and 0.1% relative to the […] More