Foreign Exchange Insights and Next Week
No Moral Bias to the Buoyant Euro
July 25, 2013
Currency markets are not altruistic. The recent buoyancy of the euro above both $1.3000 and JPY 130 is the latest example that the invisible hand of the market popularized by Adam Smith does not hand out gratuitous favors to those economies in greatest need. Forward-looking signs are mounting that the nearly two years of recession […] More
Central Bank Watch
Reserve Bank of New Zealand
July 25, 2013
New Zealand’s Official Cash Rate, which has been at 2.5% since right after the South Island earthquake some 2-1/4 years ago, will likely stay at that level for the balance of 2013 according to the latest statement on monetary policy. In such, Governor Wheeler expresses confidence about the economy: Growth in the New Zealand economy […] More
Central Bank Watch
No Changes in Filipino Central Bank Rates
July 25, 2013
The Monetary Board of Bangko Sentral ng Pilipinas released a statement after this year’s fifth scheduled interest rate policy meeting that concludes, “that prevailing monetary policy settings remain appropriate. The manageable inflation outlook and strong domestic growth support keeping policy settings steady given renewed market volatility.” The overnight lending repo rate and overnight borrowing reverse […] More
New Overnight Developments Abroad - Daily Update
Decent Data but Equities Fall Anyway
July 25, 2013
British GDP experienced the best quarter in nine, rising twice as fast in the second quarter (0.6%) as in 1Q and to 1.4% above the level in 2Q12. Britain’s services index in March-May was 0.8% higher than in December-February. The German industrial business climate index of the IFO Institute improved another 0.3 points to 106.2, […] More
