Archive for October 1st, 2014

Foreign Exchange Insights and Next Week

The Dollar During Big Declines in Equities

October 1, 2014

In periods when U.S. share prices lose extensive value, the dollar tends to swing sharply as well.  In the past, the U.S. currency has experienced periods of both strength and weakness, and one does not find a pattern between the length of the bear market in equities and the direction of the dollar. These conclusions […] More

Deeper Analysis

U.S.-Euroland Manufacturing PMIs Started to Converge Last Month

October 1, 2014

A lot of manufacturing products get traded, so manufacturing is much more sensitive to shifting exchange rates than other sectors of the economy.  The dollar rose 7.0% between its average value in April and that posted in September.  Time will tell if a 2.0 point narrowing of the manufacturing U.S.-minus-Ezone purchasing managers index differential last […] More

Central Bank Watch

Bank of Iceland

October 1, 2014

The seven-day Icelandic collateralized lending rate was left unchanged as expected at 6.0%, its level since a 25-basis point hike in November 2012 culminated 175 basis points of tightening begun in August 2011.  A statement from the Monetary Policy Committee observes that economic growth slowed in the first half of 2014 but remains consistent with […] More

New Overnight Developments Abroad - Daily Update

Japan’s Tankan, Many PMI Readings and More Protests in Hong Kong

October 1, 2014

The dollar extended its impressive rally, climbing 0.6% against the Australian dollar, 0.4% versus the Swiss franc, 0.3% relative to the euro, 0.2% vis-a-vis the yen, and 0.1% against the kiwi and sterling.  The dollar touched new lows for the move of JPY 110.10 and CAD 1.1225. With Hong Kong street mobs in their sixth […] More