Archive for August 2013

Central Bank Watch

Chilean Central Bank Rate Left at 5%

August 14, 2013

The central bank board left the monetary policy interest rate at 5.0%, its level since a sole 25-basis point cut in January 2012.  Previously, the rate was raised 475 basis points in a dozen moves between June 2010 and June 2011 after having been cut by 775 bps to 0.5% during the first seven months […] More

New Overnight Developments Abroad - Daily Update

Positive GDP Growth Reported in the Euro Area

August 14, 2013

Markets barely reacted to the news that Euroland as a whole returned to positive growth last quarter.  The 0.3% non-annualized increase from 1Q exceeded analyst expectations and trimmed the four-quarter rate of GDP decline to 0.7% from 1.1% in 1Q.  Italy, Spain, Cyprus and the Netherlands were among the countries that saw GDP contract further, […] More

New Overnight Developments Abroad - Daily Update

Weaker Yen Helps to Lift Equities

August 13, 2013

The yen is weaker than 98/USD and 1.3% below its Monday close.  Other dollar pairs are hardly changed with gains of 0.3% versus the Swiss franc, 0.2% relative to the loonie, and 0.1% against the Aussie dollar, kiwi, euro and sterling.  The yuan is steady. Japan’s Nikkei jumped 348 points or 2.6%.  Elsewhere in the […] More

Deeper Analysis

U.S. and Japanese GDP Growth Profiles Compared

August 12, 2013

Between the first and second quarters of 2013, real GDP expanded at annual rates of 1.7% in the United States and 2.6% in Japan.  This was the third consecutive quarter of positive Japanese growth following last year’s recession.  Over those three quarters, Japanese annualized growth of 1.8% also surpassed U.S. growth since 3Q12 of 0.7%.  […] More

New Overnight Developments Abroad - Daily Update

Japanese GDP Data Weaker than Forecast

August 12, 2013

The dollar opened this week with gains of 0.6% against the yen and Swissie, 0.4% versus the Aussie and New Zealand dollars, 0.3% relative to the euro, 0.2% vis-a-vis the loonie and 0.1% against sterling.  The yuan matched the U.S. currency’s advances. Stocks in the Pacific Rim closed mixed, with drops of 0.9%, 0.7% and […] More

Foreign Exchange Insights and Next Week

Next Week

August 9, 2013

Featured Data Highlights: Monday:       Japanese 2Q GDP Tuesday:      Japanese machinery orders, U.S. retail sales, Ezone industrial production and ZEW indices of investor sentiment toward the Ezone and Germany. Wednesday: 2Q GDP growth in Euroland and numerous European economies.  Bank of England minutes. Thursday:    U.S. consumer prices and industrial production.  British retail sales. Friday:         U.S. labor […] More