Foreign Exchange Insights and Next Week
Defining Fed Policy and What to Expect from the Dollar
September 29, 2015
A succession of changes occurred starting in the early to mid-1990s in how U.S. monetary policy is communicated to the public. What the Fed was doing and why became much more transparent. Policy was extremely opaque a generation ago –no minutes, no forward guidance, no immediate FOMC statement explaining a change, no post-meeting press conferences, […] More
Central Bank Watch
A Front-Loaded 50-Basis Point Interest Rate Cut in India
September 29, 2015
The Reserve Bank of India’s repo and reserve repo rates were each reduced by 50 basis points to 6.75% and 5.75%. The size of the cut was twice as much as expected and follows three 25-basis point reductions during the first half of calendar 2015. A statement from RBI Governor Raghuram Rajan characterizes policy as […] More
New Overnight Developments Abroad - Daily Update
Continuing Aversion to Risk in an Ultra-Low Global Inflationary Environment
September 29, 2015
Stock markets in the Pacific Rim fell overnight by 4.1% in Japan, 3.8% in Australia, 3.0% in Hong Kong, 2.0% in China and 1.7% in New Zealand. In Europe prior to the U.S. open, there have been incremental losses of 1.1% in Greece and 0.4% in Switzerland and Britain but gains of 0.6% in Spain, […] More
