Foreign Exchange Insights and Next Week
What’s Changed?
April 4, 2013
This important week in the global economy has changed some things in foreign exchange but left even more relationships in a purgatory between the bust of 2008-09 and the next definitive stage. Market and real economic conditions might cave into a Stockmanesque chaos. While there is wide agreement that much could yet go wrong, a […] More
Deeper Analysis
U.S. Advantage Versus Ezone in Service-Sector Activity Nearly Unchanged Last Month
April 4, 2013
The purchasing manager service-sector indices for the United States and Euroland fell by 1.6 points and 1.5 points, and their spread of 8.0 points was almost the same as in February at a wide 8.0 points. It was learned earlier this week that the manufacturing PMI differential had narrowed from 6.3 points in favor of […] More
Central Bank Watch
ECB: No Policy Change Quite Yet
April 4, 2013
The take-away from today’s statement and press conference is that monetary policy is closer to another rate cut and/or additional unconventional stimulus aimed at enhancing the transmission of monetary policy to troubled peripheral economies. Several clues were dropped. The inclusion of a plan “in the coming weeks to monitor very closely all incoming information on […] More
Central Bank Watch
Bank of Japan Shock and Awe
April 4, 2013
The Policy Board, restocked with a dovish governor and two dovish deputy governors, have walked the talk, implementing every stimulus that had been rumored and more. My only criticisms that policymakers did not set an intermediate inflation target of 3% or even 4% inflation and that they did not redefine the inflation target to a […] More
Central Bank Watch
Bank of England Keeps Status Quo
April 4, 2013
Almost always when the Monetary Policy Committee decides not to change policy settings, it initially reveals no details about its latest thinking or voting pattern. So it is in today’s released statement, and such information must wait until minutes are released on April 17th. In the meantime, the Bank Rate of 0.5% since March 2009 […] More
New Overnight Developments Abroad - Daily Update
Bank of Japan Sets the Tone
April 4, 2013
A revamped Bank of Japan Board outdid market expectations with its launch of new operational guidance, objectives, and goals. In response the yen plunged 2.4% against the dollar. The 10-year JGB yield is 11 basis points lower and, at 0.45%, is resting just above the June 2003 all-time low of 0.44%. The Nikkei-225 index advanced by […] More
