Archive for April 18th, 2013

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