Archive for January 2nd, 2014

Foreign Exchange Insights and Next Week

A Disturbing Market Signal on the First Trading Day of the Year

January 2, 2014

The Dow Jones Industrial Average suffered a triple-digit point loss today, equivalent to 0.8%.  It’s not unusual to see big gains on a year’s first trading session even in years after a strong share price performance.  On such first days of January in recent years, the Dow went up 3.0% in 2009 (even before the […] More

Deeper Analysis

U.S.-Euroland Manufacturing PMI Spread Shrinks to Four-Month Low

January 2, 2014

Whereas the Ezone PMI rose in December for a third straight time and by another 1.1 points to a reading of 52.7, the ISM reported that the U.S. purchasing managers index had dropped on month for the first time since May, albeit by a mere 0.3 points to a still-solid expansion pace of 57.0.  The […] More

Central Bank Watch

Central Bank of Sri Lanka Eases Stance

January 2, 2014

Sri Lanka’s central bank surprised markets somewhat with a cut of its main lending rate to 8.0% from 8.5%.  The borrowing rate was not changed and will stay at 6.5%.  Both interest rates had been cut in December 2012 by 25 basis points, May 2013 by 50 bps and, most recently, in mid-October again by […] More

New Overnight Developments Abroad - Daily Update

Curtain Opens on 2014 Trading

January 2, 2014

The dollar has a seasonal tendency to appreciate in the first couple of days of the year, and 2014 has not been an exception.  The greenback gained 1.1% against the Swiss franc, 0.9% relative to the kiwi, 0.8% versus the euro and Australian dollar, 0.5% vis-a-vis sterling, 0.2% against the loonie, and 0.1% versus the […] More