Foreign Exchange Insights and Next Week
No End to Uncertainty
October 10, 2013
In this age of ubiquitous economic and political uncertainty, the budget deal that Democrats and Republicans are said to be fashioning merely postpones the day of reckoning for several weeks. Despite today’s palpable market relief, nothing has been settled in an enduring way. The very existence of such uncertainty dampens economic growth, so the latest […] More
Central Bank Watch
Bank of England
October 10, 2013
The Monetary Policy Committee (MPC) didn’t change policy settings. This was the expected result. The Bank Rate has been 0.5% for over 4-1/2 years, and eleven months have now elapsed since the GBP 375 billion current limit on the Asset Purchase Program was reached. The U.K. economic recovery has been stronger than imagined, squelching any […] More
Central Bank Watch
Monetary Policy on Hold in South Korea
October 10, 2013
A statement released by the Bank of Korea defends the low 2.5% 7-day repo rate. Officials cut the rate by 25 basis points each in July 2012, October 2012 and, most recently, May 2013. Growth is strengthening but remains low, with GDP projected to expand less than 3% in 2013 and less than 4% next […] More
New Overnight Developments Abroad - Daily Update
More Productive U.S. Budget Talks???
October 10, 2013
There were unconfirmed overnight press reports that budget negotiators were showing greater willingness to compromise on a temporary extension of the budget ceiling that would push the drop dead date a month or so past mid-October. Meanwhile, the release of more scheduled U.S. data has been delayed. Brazilian monetary authorities lifted the Selic interest rate […] More
