Currency Markets in the News
G-7 Finance Ministers and Central Bankers Still Issuing Statements
October 3, 2009
One mystery was clarified after G-7 finance ministers and central bankers met in Istanbul today — they did release a written statement, the gist of which is included in the updated chronology of G-7 statements over the last eight years shown below. The statement accomplishes three tasks. The initial purpose of these meetings was to […] More
U.S Advantage Versus Euro Area in Manufacturing Narrowed Last Month
October 1, 2009
The differential between the U.S. and euro area manufacturing PMI readings narrowed for the first time since May during September. The U.S. minus Euroland spread has ranged between 2.1 points and 4.7 points over the last eight months, a much more stable pattern than during the previous nine months. Figures in the right-most column of […] More
Bank of Japan Releases Results of September Business Survey
October 1, 2009
Bm Bnm Sm Snm All Dec 1998 -49 -39 -56 -43 Dec 1999 -17 -19 -32 -28 Dec 2000 10 -10 -16 -23 Dec 2001 -38 -22 -49 -39 -40 Dec 2002 -9 -16 -33 -36 -28 Dec 2003 11 -9 -13 -28 -15 Dec 2004 22 11 5 -14 1 […] More
Bank of Japan Upgrades Assessment But Leaves Policy Unchanged
September 17, 2009
Following 6 hours 3 minutes of deliberations over two days, the BOJ Policy Board voted unanimously to keep its overnight target rate at 0.1%, where such has been since a 20-basis point cut in December 2008, and made no change in its quantitative measure to promote corporate financing conditions. None of this was a surprise. […] More
Japanese Finance Minister Fujii's First Time on the Job
September 16, 2009
Finance Minister Hirohisa Fujii made a stir already with comments that yen strength would not be resisted and an agenda to launch macroeconomic measures that will encourage a rotation of growth away from exports and investment and toward personal consumption. Some analysts are declaring the death of the yen carry trade. Japanese interest rates remain […] More
U.S. Versus Foreign Economic Growth: 2010 From 2007
September 14, 2009
The latest issue of The Economist publishes results from the September and newest monthly survey of forecasters. Projected GDP growth in 2010 has been revised higher for a wide cross-section of economies. Revisions amount to 0.6 percentage points (ppts) for the case of the euro area, 0.5 ppts for the United States, 0.3 ppts for […] More
Does The Japanese Government Bond Market Face Armageddon? Probably Not.
September 8, 2009
A provocative headline on today’s wire services reports High Frequency Economics founder and chief economist Dr Carl Weinberg predicting a “catastrophic” debacle in Japanese public finances under the incoming Democratic Party government, resulting in a near-vertical yield curve. Insofar as Japan has the second largest economy in the world, Weinberg reportedly further projects that this […] More
Service-Sector PMIs Show Greatest Ezone Advantage Versus U.S. Since Last December
September 3, 2009
PMIs U.S. Ezone U.S. Ezone Sum of Services Services Spread Mf’g Mf’g Spread Spreads Feb 2008 49.7 52.3 -2.6 48.8 52.3 -3.5 -6.1 March 49.9 51.6 -1.7 49.0 52.0 -3.0 -4.7 April 51.9 52.0 -0.1 48.6 50.7 -2.1 -2.2 May 51.2 50.6 +0.6 49.3 50.6 -1.3 -0.7 June 48.8 49.1 -0.3 49.5 […] More
ECB Press Conference: Upwardly Revised Growth and Price Forecasts But Low Interest Rates to Continue
September 3, 2009
The ECB rate structure will remain unchanged. The key refinancing rate stays at 1.0% and continues to be surrounded by a deposit rate of 0.25% and a marginal lending rate of 1.75%. A second unlimited 12-month allotment of liquidity on September 30th will be made at the 1.0% refinancing rate, a signal of no urgency […] More
More Green Shoots
August 26, 2009
The signs of economic spring are arriving in greater abundance and color, and it’s happening most everywhere. World trade volume rose in June for the first time in 11 months according to a Dutch think tank. Real GDP expanded 1.3% at a seasonally adjusted annualize rate (saar) during 2Q09 in both Germany and France. Euroland’s […] More
