Foreign Exchange Insights and Next Week
Upside Dollar Potential
June 10, 2015
The dollar is in a corrective phase. From the low in 2014 to this year’s high, the dollar advanced 33.8% against the euro, 26.2% against the Australian dollar, 25.7% relative to the kiwi, 24.9% vis-a-vis the yen, 22.1% on a trade-weighted basis, 21.3% versus the Canadian dollar and 18.0% against sterling. Varying percentages of these […] More
Central Bank Watch
Central Bank of Iceland Shifts Gears
June 10, 2015
First some policy history. Iceland’s seven-day collateral lending rate was slashed in 15 steps to 4.25% by February 2011 from 18.00% prior to March 2009. Then, seven increased between August 2011 and end-2012 lifted the rate back to 6.0%. The next directional reversal came late last year, cuts of 25 basis points in November followed […] More
Central Bank Watch
Thai Monetary Policy Left Unchanged
June 10, 2015
In response to more sluggish economic growth as attested by only a 2.2% rise of real GDP between 4Q13 and 4Q15, the monetary policy committee (MPC) of the Bank of Thailand had cut the one-day repo rate twice earlier this year by 25 basis points each in March and April. Even earlier, six reduction between […] More
New Overnight Developments Abroad - Daily Update
Several Countries Report Industrial Production and EU Commission Turns Down Greek Debt Proposal
June 10, 2015
The dollar recorded overnight losses of 0.9% against the yen, 0.6% versus the Australian and New Zealand dollars, 0.5% vis-a-vis the loonie, 0.4% relative to sterling and 0.1% against the Swiss franc. The Chinese yuan was steady, and the dollar edged up 0.1% against the euro. Bank of Japan Governor Kuroda called the yen weak […] More
