The information reviewed at the August meeting indicated that the economy expanded at a moderate pace in the second quarter, but recent financial market developments highlighted some of the stresses that the economy faced going forward. Both consumer and business spending recorded gains in the second quarter, and net exports…
It has now been a year since the international financial crisis really took off.
Q2 2008 did not write itself into the FX annals as a particularly remarkable quarter. The same old song about the trials and tribulations of the dollar and all the blessings of the euro characterised most of the quarter, thus only confirming the trend from the beginning of the year….
In choosing the topic for this year’s symposium–maintaining stability in a changing financial system–the Federal Reserve Bank of Kansas City staff is, once again, right on target. Although we have seen improved functioning in some markets, the financial storm that reached gale force some weeks before our last meeting here…
UK short-term market interest rates had risen after the MPC’s July Minutes were published and had then fallen back after the weak retail sales data. By the August meeting, interest rates at six to twelve months ahead were around 40 basis points lower than at the time of the July…
Our analysis reasonably concludes that Euroland headline inflation peaked at 4.0% in June and July. Also, as baseline effects begin to kick in around October inflation rates will start to decline.
The chart shows my long term count for the EUR/USD movement started from 1985 year. It suggests that it is developing as a zigzag correction with wave B of the zigzag developed as an irregular triangle as is shown on the chart. This count suggests that there should be a…
At the Monetary Policy Meeting held today, the Bank of Japan decided, by a unanimous vote, to set the following guideline for money market operations for the intermeeting period: The Bank of Japan will encourage the uncollateralized overnight call rate to remain at around 0.5 percent.
In evaluating the recommendation, members noted that there had clearly been a significant change in trend in household demand over the preceding few months. Tight financial conditions, high petrol prices and declining asset values were all contributing factors, though petrol prices had recently declined somewhat and tax cuts had taken…
There are three sound reasons why EUR/USD could continue to decline in the coming year. First, the euro is decidedly overvalued relative to historical benchmarks
