New Overnight Developments Abroad - Daily Update
Five Central Banks Share Spotlight
July 17, 2013
Federal Reserve Chairman Bernanke delivers his semi-annual monetary policy report before the House Financial Services Committee today. Formerly known as the Humphrey-Hawkins testimony, Bernanke is expected to draw a distinction between reducing quantitative easing and raising ultra-low interest rates. But the issue is not the lowness of the shortest end of the spectrum, which the […] More
New Overnight Developments Abroad - Daily Update
Central Bank Surprises in India and Australia
July 16, 2013
Published minutes from the Reserve Bank of Australia reflected a tilt away from additional monetary easing. At the policy board meeting earlier this month, officials observed that past rate cuts were positively impacting housing and other aspects of the economy and believed that this support had not yet run its course. Aussie dollar depreciation was […] More
New Overnight Developments Abroad - Daily Update
Stronger Dollar Early Monday
July 15, 2013
The dollar has risen 1.0% against the yen, 0.7% versus the Swissie, 0.6% relative to the kiwi, 0.5% against the euro and sterling, 0.3% versus the loonie and 0.1% against the Australian dollar. The yuan is steady. Share prices climbed 1.4% in China following the release of several indicators there. Equities otherwise haven’t moved much, […] More
Foreign Exchange Insights and Next Week
Dateline July 14
July 14, 2013
On this Bastille Day, twenty eight weeks into 2013, my main takeaway from the foreign exchange markets thus far is the isolation of key currency pairs from the volatility of bonds and stocks. Dollar values against the euro and Swissie are just 0.4% and 0.9% from their year-to-date averages. The distance from the yearly averages […] More
Foreign Exchange Insights and Next Week
Next Week
July 14, 2013
The two main highlights in the week to July 19 will be the release of several Chinese economic indicators and the Humphrey-Hawkins testimony of Federal Reserve Chairman Bernanke before the House on Wednesday and the senate on Thursday. Aside from June estimates of industrial production, fixed investment, and retail sales, Chinese 2Q GDP arrives, too. […] More
Larry's Blog
Getting Well
July 12, 2013
A nasty bout of bronchitis has come between me and the reliably useful steady flow of timely information that can be found on Currency Thoughts. Doing the heavy work required by this blog and restoring health are not a realistic combination of priorities. For now, getting well will have to take precedence, and Currency Thoughts […] More
New Overnight Developments Abroad - Daily Update
Some Interesting Data
July 9, 2013
Growth in Japan’s monetary base is seeping into the money supply. A 3.8% on-year rise in M2 money in June was the most in over a decade. M2 growth accelerated to 3.5% in the second quarter from 2.9% in 1Q and 2.5% in 2012. Broad liquidity climbed 3.2% in the year to June, up from […] More
New Overnight Developments Abroad - Daily Update
Divergent Equities in Europe and Asia
July 8, 2013
In the Pacific Rim, stocks dropped sharply by 3.7% in Indonesia, 2.8% in China and the Philippines, 1.3% in Hong Kong, 1.4% in Taiwan and 0.9% in South Korea and India. Australian share prices closed 0.7% lower, and Japan’s Nikkei dropped 1.4%. But in Europe, equities have risen 2.3% in Germany, 2.0% in France, 1.6% […] More
Foreign Exchange Insights and Next Week
Next Week
July 5, 2013
Central banks in Japan, South Korea, Indonesia, Brazil, Mexico, Chile, Thailand, Malaysia, and Serbia have scheduled intrest rate policy meetings in the week to July 12. FOMC minutes, the ECB Bulletin, and the Bank of Japan’s monthly economic assessment get published. ECB Pdt Draghi testifies in the EU Parliament on Monday, Fed Chairman Bernanke gives […] More
Deeper Analysis
Comments on U.S. and Canadian Jobs Data
July 5, 2013
The wire service headlines told the good news from the U.S. jobs report. Employment in June, up 195K, was 30K more than forecast, while revisions to April and May levels identified 77K more workers than counted previously. Growth in private-sector employment exceeded 200K in both May and June. Jobs grew by a decent 1.7% over […] More
