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
