Deeper Analysis
April in Figures
April 30, 2013
The yen weakened additionally in April, but the dollar failed to catapult above the key JPY 100 level. The dollar fell against European currencies, most commodity-sensitive currencies and the Chinese yuan. A more aggressive-than-anticipated Bank of Japan stimulus announced shortly after the start of the month was meant in large part to depress longer-term interest […] More
Deeper Analysis
Disinflation
April 30, 2013
U.S. housing prices crested just about seven years ago in the spring of 2006. The sub-prime mortgage loan crisis struck in the summer of 2007, and much of the world slipped into an awful recession in 2008. By 2009, deficit government spending swelled, and nominal central bank interest rates were approaching zero in the who’s […] More
New Overnight Developments Abroad - Daily Update
Month-End Data Deluge
April 30, 2013
The dollar hasn’t reacted much to a ton of data released on the final day of April. The greenback fell 0.4% against the yen and 0.1% versus the Swiss franc but is up by 0.2% relative to the euro and 0.1% vis-a-vis the Canadian, Australian, and New Zealand dollars. Sterling and the yuan are unchanged […] More
New Overnight Developments Abroad - Daily Update
Somewhat Softer Dollar
April 29, 2013
With holiday closures in Japan for Showa Day (commemorating the era of former Emperor Hirohito) and China for Labor Day, the dollar had declined 0.7% against the kiwi, 0.6% versus the Australian dollar, 0.4% relative to the euro and Swiss franc, 0.3% against the loonie and sterling and 0.1% vis-a-vis the yen. The yuan is […] More
Foreign Exchange Insights and Next Week
Next Week
April 26, 2013
Monetary policy meetings with press conferences at the Federal Reserve and European Central Bank headline next week’s central bank watch. The ECB is widely expected to cut interest rates. Other central bank policy meetings will be held in India, the Czech Republic and Romania. Bank of Japan minutes will be published. Several holidays will interrupt […] More
Central Bank Watch
Mexico and Colombia: Central Bank Rates Left Unchanged
April 26, 2013
It’s not just the wealthier nations that are experiencing slower growth. Mexico and Colombia are two Latin American economies that are growing below potential. Bank of Mexico officials had implemented a 50-basis point cut of its key interest rate in July. That was the first reduction since July 2009. There was not a follow-up move […] More
Central Bank Watch
Bank of Japan Review
April 26, 2013
The nine-person Policy Board released a two-sentence statement affirming by unanimous vote to “conduct money market operations so that the monetary base will increase at an annual pace of about 60-70 trillion yen.” The decision implicitly pins the overnight money rate to a range of zero to 0.1%. This was the second meeting of the […] More
New Overnight Developments Abroad - Daily Update
Yen Strengthens after BOJ Meeting… European Stocks Lower
April 26, 2013
After a Policy Board meeting lasting four hours and 28 minutes, the Bank of Japan left its interest rate target at zero to 0.1% and did not initiate any new quantitative easing initiatives beyond those unveiled at the prior meeting. The monetary base will be increased by 60-70 trillion per year, and policy easing will […] More
Foreign Exchange Insights and Next Week
Doldrums for Dollar Watchers
April 25, 2013
It’s been another uneventful statement week for key dollar exchange rates. The Canadian and Australian currencies remain boringly close to parity with the greenback. The waiting game goes on for the euro, which has averaged $1.3154 thus far in 2013, to break decisively away from $1.3000. The euro, Swiss franc, sterling, Aussie dollar, Chinese renminbi, […] More
Central Bank Watch
Filipino Central Bank Engineers a Third 2013 Cut of Special Deposit Rate
April 25, 2013
Officials at Bangko Sentral ng Pilipinas left the main monetary policy signals unchanged. The overnight borrowing rate (reverse repo) stays at 3.5%, while the overnight lending rate (repo) was held at 5.5%. These rates had been cut four times in 2012 (January, May, July and October) but not subsequently. As officials had done at previous […] More
