Central Bank Watch
Central Reserve Bank of Peru Retains 4.0% Reference Interest Rate as Expected
January 9, 2014
Monetary officials in Peru surprised the markets with a 25 basis point interest rate cut in November. This was not repeated in December, nor at this month’s just-completed meeting, either. Indeed, the latest statement reads very similarly to December’s, predicting that that with current policy inflation in 2014-15 will hover very close to the 1-3% […] More
Foreign Exchange Insights and Next Week
Optimism Surrounding the Dollar as 2014 Kicks Off: What Does Such Mean?
January 9, 2014
For a variety of reasons, forecasters seem more bullish than bearish about the dollar’s prospects this year. Optimism not only stems from the theoretical soundness of pro-dollar factors but from their number. Even if some potential dollar boosters fail to activate, it seems less than likely that such will be the case with all of […] More
Central Bank Watch
ECB Tightens Commitment to Forward Guidance But Doesn’t Change Key Rates
January 9, 2014
The Governing Council strongly emphasizes that it will maintain an accommodative stance of monetary policy for as long as necessary, which will assist the gradual economic recovery in the euro area. Accordingly, we firmly reiterate our forward guidance that we continue to expect the key ECB interest rates to remain at present or lower levels […] More
Central Bank Watch
Bank of England’s Non-Event
January 9, 2014
In the case of most central banks, monetary policy meetings are market-moving news-creating events even when no policy modifications are announced. Statements are released shedding new light on how policymakers see trends evolving and how they might respond, and these are augmented sometimes by press conferences or released macroeconomic projections. The Bank of England is […] More
New Overnight Developments Abroad - Daily Update
More Signs of Europe Improving
January 9, 2014
The dollar is narrowly mixed ahead of the ECB press conference. The Bank of Korea and Bank of England already have announced unchanged policy stances. The dollar is up 0.3% against the Australian dollar, 0.2% versus the kiwi and loonie and 0.1% relative to the yuan and yen but has eased by 0.2% against the […] More
