Deeper Analysis
April in Figures
April 30, 2014
Long-term bond yields fell in April but not as sharply as they had in March. Short-term interest rates remained extremely low, anchored by zero- or near-zero central bank policy rates. Net dollar movements in the month were comparatively limited and directionally mixed. The yen and pound were the strongest monies in the month. The Nasdaq […] More
Central Bank Watch
Uneventful FOMC Meeting as Expected
April 30, 2014
A statement released after the two-day Federal Open Market Committee meeting this week reads almost identically to the prior March 19 statement. The few changes made involved the first paragraph mostly, which deals with the committee’s view of economic conditions. As at the three prior meetings in December, January and March, monthly purchases of mortgage-backed […] More
Central Bank Watch
Bank of Japan Board Leaves Policy Unchanged, Releases Semi-Annual Outlook
April 30, 2014
The interest rate and asset purchase policy settings will continue to be those that were introduced thirteen months ago. Japan’s central bank is pursuing a virtual zero interest rate policy within a range of 0.0-0.1% on its overnight interest rate. The monetary base is being increased at an annual pace of about 60-70 trillion yen […] More
Central Bank Watch
FOMC Preview
April 30, 2014
This should be a routine event as FOMC meetings go. Expectations of a further $10 billion drop in the Fed’s monthly asset purchases are virtually certain to be met. No post-announcement press conference is scheduled, nor are updated forecasts being released. All the market gets is a statement that will mimic most of the elements […] More
Central Bank Watch
Bank of Israel
April 30, 2014
The monthly policy board meeting this past Monday left Israel’s monetary policy interest rate unchanged at 0.75% and released a statement that noted CPI inflation in March was just 1.3%. It also averaged 1.3% in the first quarter, and the statement notes that inflation over the coming year is expected to lie in the bottom […] More
Deeper Analysis
Comment on U.S. GDP Clunker
April 30, 2014
Real GDP edged only 0.1% higher last quarter at an annualized rate. Most other governments don’t bother with Washington’s custom of annualizing quarterly growth and would have reported today’s growth rate as a mere 0.03%. Either way, the result was far below forecasts centered on 1.5%. A number of analysts also have been predicting full-2014 […] More
New Overnight Developments Abroad - Daily Update
Awaiting FOMC Decision as First Third of 2014 Winds Down
April 30, 2014
The dollar has slipped 0.3% against the Swiss franc, 0.2% versus the euro and 0.1% relative to the yen and kiwi. The greenback is 0.1% firmer against the loonie and unchanged versus the Australian dollar, Chinese yuan and sterling. Share prices in the Pacific Rim fell 1.4% in Hong Kong but rose 1.6% in New […] More
Central Bank Watch
Magyar Nemzeti Bank’s Key Interest Rate Lowered to 2.5%
April 29, 2014
Officials at Hungary’s central bank have cut their base rate at every monthly policy meeting since July 2013, but the incremental change has been reduced as slack in the economy has diminished. A second successive 10-basis point cut decided at today’s meeting leaves the rate level at 2.5%. There were previous easings of 15 basis […] More
New Overnight Developments Abroad - Daily Update
Data Focus on Europe
April 29, 2014
European stocks have risen 1.5% in Italy, 1.2% in Germany, 0.9% in Spain, 0.5% in Britain and Switzerland and 0.5% in France. Equities in the Pacific Rim were mixed, with gains of 1.1% in China, 1.5% in Hong Kong, 0.7% in Taiwan and 0.6% in New Zealand but losses of 1.0% in Japan, 0.9% in […] More
Foreign Exchange Insights and Next Week
Next Week
April 27, 2014
The coming week, which encompasses end-April and the start of May includes FOMC and Bank of Japan policy meetings, a speech by Janet Yellen, several market closures for May Day, and numerous data releases. Hungary and Israel also have monetary policy meetings. Japan’s first Golden Week holiday, Showa Day, is on Tuesday. The U.S. data […] More
