Foreign Exchange Insights and Next Week
Diminishing Volatility in the Dollar
July 16, 2014
Currencies are sharing in the phenomenon of scant volatility seen this year in many financial markets. 2014 is now 54% completed. The most influential currency pair, EUR/USD, has fluctuated between a high of 1.3993 and a low of 1.3475, a high-low band of just 3.8%. Dollar/yen’s trading band of 105.49 to 100.73 so far this […] More
Central Bank Watch
Bank of Canada Retains 1.0% Money Rate Target & Releases New Forecasts
July 16, 2014
Canada’s overnight interest rate target has been at 1.0% since a 25-basis point hike in September 2010 and is likely to stay at that level for quite a while longer. In its released statement after this year’s fifth of eight policy meetings, officials called their accommodative stance “appropriate” and declared continuing neutrality “with respect to […] More
Central Bank Watch
Central Bank of Chile
July 16, 2014
After slicing Chile’s monetary policy rate on July 15 by another 25 basis points to 3.75%, the central bank Board released a statement that observed a continuing slowdown of growth that’s already sub-trend. Even though inflation of 4.3% exceeds target by more than a percentage point, it’s receding, and officials predict “that inflation will stay […] More
Foreign Exchange Insights and Next Week
Somewhat Better-Than-Forecast Chinese Data Lifts European Equities
July 16, 2014
Stock markets in Europe have risen so far today by 1.6% in Italy, 1.4% in France, 1.2% in Germany and Spain, 0.9% in Britain and 0.8% in Switzerland. Stocks in the Pacific Rim did not immediately respond to stronger-than-expected Chinese GDP and industrial production, as investors at first concluded that the government in Beijing would […] More
