Archive for September 29th, 2015

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