Sterling Strengthens… Emerging Market Currencies Slide

June 5, 2018

Sterling advanced 0.4% overnight against the dollar, buoyed by better-than-forecast British service sector and composite purchasing manager indices in May that rose to 3-month highs of 54.0 and 54.3, respectively. The dollar also edged down 0.1% against versus the yuan and yen but climbed 0.4% and 0.3% relative to the Australian and Canadian dollars and […] More

Currency Management Norms Under Threat

May 23, 2016

A statement released April 15 by G20 finance ministers and central bank governors reaffirmed a position against currency manipulation that represents a coordinated stance that’s been in place already for a long time: Excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability.  We will consult closely on […] More

Confusion around Greek Debt Talks and a Big Drop in Chinese Stocks

May 28, 2015

Greek officials are expressing confidence a deal will be struck within three days.  The IMF and other creditors warn that the sides are still far apart.  Greece has been the main topic as G7 finance ministers and central bank chiefs continue to meet in Dresden, Germany. Chinese equities plummeted 6.7%, most in several months.  The […] More

Calmer Conditions than Yesterday

May 27, 2015

Following the Memorial Day closure, the dollar climbed sharply on Tuesday, sending equities lower including a 190-point drop in the DOW.  Whether the Fed hikes the federal funds target on June 17 remains uncertain.  Richmond Fed President Lacker overnight said his vote hasn’t yet been decided and will hinge on data between now and then. […] More

Several Issues in the Spotlight

October 11, 2012

A slowdown of emerging market growth elicited interest rate cuts in Brazil and South Korea but not Indonesia. S&P downgraded Spain’s credit rating by two notches.  The move was not surprising. Italian debt auctions produced mostly lower interest rates and higher bid-cover ratios.  From a size standpoint, the top end of planned sales was achieved. […] More

Coordinated Central Bank Provision of Dollar Liquidity: Good or Bad News?

September 15, 2011

Central Banks in Switzerland, the euro area, and Japan have simultaneously posted notices on their web sites of a coordinated effort to undertake longer-term 84-day tenders of dollar liquidity, thereby covering a period that extends beyond end-December.  Here’s an example from the ECB.  One sees that each of the announcements provides links to similar announcements […] More

Numerous Official Efforts to Halt Market Turmoil Mostly Failing

August 8, 2011

After markets closed Friday, S&P downgraded the U.S. credit rating from AAA to AA+ and retained a negative outlook, meaning more downgrades are possible. Stocks in Israel tumbled almost 7% on Sunday. G-20 finance ministers and central bank governors released a statement that “affirms our commitment to take all necessary initiatives in a coordinated way […] More

Weaker Euro

April 14, 2011

The dollar rose 0.4% against the euro and is 1.0% stronger than yesterday’s low of 1.4523/EUR.  The dollar also advanced 0.4% against the Canadian dollar, 0.2% relative to the Australian dollar and 0.1% against the kiwi.  The dollar lost 0.6% against the yen and 0.2% relative to sterling and the Swiss franc.  The yuan is […] More

CPI Inflation in the Group of Seven and Implications For the Fed's Exit Strategy

November 3, 2009

According to price data released by the OECD today, on-year inflation in the Group of Seven (U.S., Euroland, Japan, Britain and Canada) printed at negative 1.0% but ranged widely between minus 2.2% in Japan and plus 1.1% in Britain.  The United States registered the biggest percentage point decline between the year to September 2008 and […] More

Economic Recovery in the U.S., Euroland, Japan, and Britain

October 29, 2009

The data from major advanced economies continues to inspire less hope than what China and other developing economies are reporting. Aspects of the 3.5% rise of U.S. GDP last quarter look too good to last.  Slightly over two-thirds of the increase resulted from consumption of durable goods (much of which reflects the expired cash for […] More