Euroland Data Point to ECB Rate Hike a Week from Tomorrow

March 30, 2011

The last rate hike at the European Central Bank was by 25 basis points in July 2008 and shrouded in controversy, coming just over two months before the collapse of Lehman Brothers triggered an intensifying global recession.  The refinancing rate has been at 1.0% since May 2009, some 325 basis points lower than the prior […] More

Purchasing Managers Surveys: Smaller U.S. Advantage Against Euroland

March 3, 2011

The United States and Euroland experienced fairly decent activity in both service sector activity and manufacturing last month according to purchasing manager survey data released this week.  In a scale where a score of 50.0 delineates neutrality between expansion and contraction and readings of 60 connote a truly brisk pace, none of the four overall […] More

Heavy Data Barrage But Not Much Currency Movement

March 1, 2011

The dollar shows gains of 0.3% against the yen and 0.2% relative to the kiwi.  The U.S. currency is unchanged against the yuan and Swiss franc and down 0.1% against sterling, the Canadian dollar, the euro and the Australian dollar.  Today see a slew of data releases and the spotlight on several central banks. The […] More

Euroland Producer Price Trends

February 2, 2011

A 5.3% advance in euro area producer prices between December 2009 and December 2010 more than reversed a 2.9% drop in the previous twelve months.  The most pronounced shift was in energy, where producer costs increased 11.3% in the latest year after dropping 5.6% in the year to December 2009. Energy wasn’t the only responsible […] More

Dollar Down Ahead of U.S. GDP and Employment Cost Reports

January 28, 2011

The dollar lost 0.6% against the yen overnight and is down 0.4% against the Australian dollar, 0.3% versus the kiwi and Swiss franc, and 0.1% against the euro.  The dollar is up 0.1% relative to the Canadian dollar and pound sterling but steady against the Chinese yuan. Share prices are mostly lower, with declines of […] More

November PMIs: European Disadvantage Versus United States Narrows

December 3, 2010

In the United States and Europe, both manufacturing and non-manufacturing recoveries persisted into the latter half of the fourth quarter.  That’s signified in the table below by above-50 readings in all categories last month (the last row of the table).  However, the differential between the strength of the U.S. and Euroland recoveries narrowed. In manufacturing […] More

Peripheral Bond Premiums Sharply Lower; It’s Jobs Data Day in the U.S.

December 3, 2010

The dollar is mostly lower, with losses of 0.5% against the Australian dollar, 0.3% versus the yen and sterling, and 0.2% against the Canadian dollar, kiwi, and euro.  Dollar-Swiss is an exception, rising 0.1%, and the yuan is steady against the greenback. In the Pacific Rim, equities rose 0.7% in the Philippines, 0.5% in Pakistan […] More

ECB Holds Key to Thursday Trading

December 2, 2010

The dollar has eased 0.4% against the Canadian dollar, 0.3% against the euro and Swiss franc, and 0.1% relative to the kiwi and yuan.  The greenback is up 0.1% against the yen, Australian dollar, and sterling. Following yesterday’s rally in U.S. stocks, equities climbed by 2.1% in Indonesia, 2.0% in Australia, 1.8% in Japan where […] More

Factory PMI Results: U.S. Down and Euroland Up

December 1, 2010

The U.S. minus euro area purchasing managers survey in manufacturing fell to 1.3 points in November from 2.3 points in October, as the U.S. index slid by 0.3 points and Euroland’s index rose 0.7 points.  Average readings in October-November of 56.8 in the states and 55.0 in Euroland signify solid conditions in each region heading […] More

Markets Rattled by Two Persistent Risks: Korea and Ezone Debt

November 26, 2010

The dollar advanced sharply against the euro and commodity-sensitive currencies, with gains of 1.9% against the Australian dollar, 1.6% versus the kiwi, 1.4% relative to the Canadian dollar and 1.2% against the euro.  Other dollar rises overnight were much milder: 0.5% against sterling, 0.3% against the yen, 0.2% vis-a-vis the Swiss franc and no change […] More