Foreign Exchange Insights and Next Week
No Wind in the Euro/Dollar’s Sail
August 4, 2016
The most significant bilateral paper currency relationship from both an economic, political, market-trading and psychological standpoint is the EUR/USD. Before the euro was introduced at the start of 1999 when many countries in Europe more or less linked their currencies to the mark, that role involved the exchange rate between the dollar and Deutsche mark. The […] More
Central Bank Watch
Bank of England Approves a Package of Easing Measures
August 4, 2016
Although criticized for meddling in national politics and overstating the dangers, Bank of England Governor Carney’s pre-referendum warning against the economic consequences of a voter decision to leave the European Union have proven to be spot on accurate. It now falls to the central bank to do “whatever it takes” to counter those repercussions. At […] More
Central Bank Watch
Czech National Bank Meeting Keeps Present Policy Stance
August 4, 2016
The decision to leave Czech monetary policy settings had been expected. The two-week repo rate has been 0.05%, effectively zero in functionality terms, since November 2012, and a one-sided intervention-enforced foreign exchange cap on koruna strength at 27 per dollar was imposed as an extra tool one year later. According to a newly updated forecast, monetary policy-relevant […] More
Central Bank Watch
National Bank of Romania’s Main Interest Rate Kept at 1.75%
August 4, 2016
Romania’s last four interest rate cuts totaling one percentage point were implemented during the first five months of 2015. Economic growth is performing well, exceeding 4.0% at an annual rate in the first quarter of 2016. However, inflation is still negative and expected to remain so until the end of this year “before returning inside the […] More
New Overnight Developments Abroad - Daily Update
Sterling Falls after Bank of England Eases
August 4, 2016
The mixed dollar shows gains of 1.4% against sterling, 0.3% versus the euro, 0.2% relative to the yuan and 0.1% vis-a-vis the yen, loonie and Swiss franc but losses of 0.9% against the Australian dollar, over 1.0% versus the rand and 0.4% vis-a-vis the kiwi. Share prices have risen 1.1% in Japan, 1.7% in Spain, […] More
