Foreign Exchange Insights and Next Week
Unresponsive Currencies
April 18, 2013
The wonderful thing about currency markets is the virtually limitless range of determinant factors, and these have been days full of unprecedented and unexpected developments. The continuing inertia of several key dollar relationships is thus surprising, and that suggests a structural reduction in the intrinsic volatility of currency movement. The table below compares current dollar […] More
Central Bank Watch
Central Bank of Brazil Tightens Monetary Policy for First Time since July 2011
April 18, 2013
Brazil’s Selic Rate was raised 25 basis points to 7.5%, breaking a streak of ten consecutive cuts totaling 525 basis points between August 2011 and October 2012. Brazil is slipping into stagflation. The easing earlier was a response to progressive slower economic growth that remains anemic. But inflation accelerated from 6.0% in January to 6.59% […] More
New Overnight Developments Abroad - Daily Update
Spotlight on the United States
April 18, 2013
The IMF/World Bank spring meetings in Washington D.C. kick off today. G20 finance ministers and central bank chiefs attending those meetings will be holding separate talks and issuing a communique that reportedly calls on all nations not to devalue competitively but does not single out Japan explicitly. The governor of India’s central bank said intervention […] More
