Archive for April 22nd, 2015

Foreign Exchange Insights and Next Week

Dollar Paused in Troubling Times

April 22, 2015

In spite of disappointing U.S. growth for a second straight quarter, dollar demand sizzled in January-March.  Trading has been consolidating this month, and not merely pausing after such an upward spurt or even because of some convergence of macroeconomic trends between the United States and Europan.  These are disturbing times.  Each day, more bad news […] More

Central Bank Watch

An Indirect Central Bank Approach to Containing Turkish Lira Depreciation

April 22, 2015

2015 is not even 31% complete, yet the beleaguered lira has fallen 15% against the dollar.  The danger is that currency weakness will lift inflation, which in March stood at 7.6%.  The currency’s weakness was amplified by cuts in the one-week repo rate of 50 basis points in January and 25 bps in February on […] More

New Overnight Developments Abroad - Daily Update

Weaker Dollar Especially against the Ozzie and Sterling

April 22, 2015

The Australian dollar has risen 1.2% against its U.S. counterpart, buoyed by Aussie first-quarter CPI data that showed core inflation falling no further and remaining above 2.0% target floor. Sterling was lifted 0.7% against the dollar by Bank of England April 8-9 minutes that revealed not only a unanimous 9-0 vote for no change but […] More