Foreign Exchange Insights and Next Week
Never Underestimate the Power of Fear Itself
October 15, 2014
These are fearful times for financial markets and the general public. It’s much easier to believe in Murphy’s Law that if something can go wrong it will than to dismiss the recent market swings as fleeting hysteria that will self-correct because economic trends are fundamentally sound. The list of stress points is lengthy: Euroland is […] More
Central Bank Watch
Bank of Korea Cuts Seven-Day Repo Rate
October 15, 2014
Citing sluggish capital investment, subdued business confidence, a later likely end to the current output gap, and thus weaker inflationary pressure than foreseen previously, the Bank of Korea released a statement explaining its reasons for cutting the key interest rate to 2.0%. This level matches the post-Great Recession low maintained from April 2009 until a […] More
New Overnight Developments Abroad - Daily Update
Sinking Commodities Squelching Any Threat of Higher Inflation
October 15, 2014
WTI oil at $80.83 per barrel is down 1.2% on the day, bring its cumulative drop since June 20 to 24.4%. Comex gold at $1,223.20 per ounce is down 0.9% on the day and 31% below its level of two years ago. The Bloomberg Commodity index hit a 5-1/4 year low today. The International Energy […] More
