Zew Institute

RBA Minutes Depress Australian Dollar in Otherwise Quiet Morning

June 17, 2014

The Australian dollar declined 0.4% against its U.S. counterpart.  Minutes from the central bank’s June 3 meeting contained a more sober view of economic growth prospects, satisfaction that inflation will stay in target, and the continuing assertion that Australia’s exchange rate is stronger than warranted. The U.S. currency otherwise is is uchanged against the euro, […] More

Tuesday Marked by U.S.-Sino Data Releases and a Restrictive Australian Budget

May 13, 2014

China released retail sales, industrial production and business investment.   Japanese money growth slowed to a 12-month low. U.S. retail sales, import prices, small business sentiment, business inventories, and weekly chain store sales will be reported later in the day. It’s budget day in Australia, and markets are braced for a big dose of austerity there […] More

Tensions Escalate Between Russia and the West

March 18, 2014

Russian President Putin accepted Crimea’s request to be annexed, and Western economic sanctions were imposed in response, making a Russian recession virtually certain. Malaysian Flight 370 remains missing. More evidence emerged that Chinese economic growth faces downside risks. Reserve Bank of Australia Board minutes point to no policy change for some time. ZEW Institute March […] More

Dollar Strengthening as 3-Day U.S. Holiday Weekend Ends

January 21, 2014

U.S. markets will reopen following the MLK holiday, but activity will continue to be dampened by a big storm in the Northeast. The dollar gained overnight by 0.7% against the kiwi, 0.5% relative to the yen, loonie and Swiss franc, and 0.3% versus the euro and Australian dollar.  The Canadian dollar weakened through the 1.1000 […] More

Continuing Rush to Release Data Ahead of the Yearend Holidays

December 17, 2013

Typical of December, many countries are releasing data earlier in the month than is typical at other times of the year.  The same is true of central bank meetings. Four central banks announced monetary  policy meeting decisions. Swedish Riksbank:  Cut its repo rate by 25 basis points to 0.75%.  The decision was unanimous and expected.  […] More

Federal Reserve in the Spotlight

September 17, 2013

Even as the Federal Open Market Committee meets today for the first of a critical two-day policy meeting, a story has emerged that Janet Yellen, the present vice-chairperson, is now the front-running candidate to succeed Ben Bernanke as chair-person.  Bernanke’s second 4-year term ends in late January. In other central bank news, Minutes from the […] More

All Eyes on the FOMC

June 18, 2013

Whether, when, and by how much to taper quantitative stimulus is the question of the day, as the FOMC meets on the first day of a 2-day meeting.  Creating even more uncertainty, President Obama while attending the G8 summit indicated that Chairman Bernanke had not originally planned to stay in that post as long as […] More

Yen Reacts Adversely after BoJ Decisions

January 22, 2013

The yen lost 1.1% on balance against the dollar overnight.  The U.S. currency is otherwise down 0.6% against the kiwi, 0.5% versus the Australian dollar, 0.4% relative to the Swissie, 0.3% against sterling, and 0.1% against the euro.  The yuan and loonie are unchanged against the greenback. Share prices fell by 1.1% in the Philippines, […] More

Less Market Anxiety than on Monday

December 11, 2012

There is less worry today about Italy’s political outlook, as hope exists that Prime Minister Monti will run as a politician in February elections and prevent Berlusconi from regaining control of the government. The FOMC’s two-day meeting begins today amid expectations for a sharp escalation by the central bank of its quantitative easing. Monthly ZEW […] More

Fresh Concern over Greek Debt Talks

November 13, 2012

An Ecofin meeting failed delayed a decision on the next tranche of aid to Greece until November 20th.  Leaders of the European Union and IMF have disagreed over deadlines when Greece must meet debt reduction targets.  The euro hit a two-month low of $1.2661 overnight but is up 0.1% on balance at the moment.  The […] More