currencies

Highlights The US dollar is trading heavier today as Asia and Europe sold into the strong gains scored in North America yesterday following yesterday’s surprise Chinese rate hike.  Of the majors, the euro and Australian dollar are…

This is the Golden Age of Fed Watching. And we’ve done our fair share. On a day when we have speeches from 5 Fed presidents and 1 governor, what more is there to say that hasn’t already been said? Faith in the Fed is high, and capital…

Manuel Marfán, vice-governor of the Central Bank of Chile, told CNBC Europe Tuesday that the Chileans are concerned about what is happening in the currency markets. He said their first responsibility was to be "good global…

by Win Thin We don’t think that the timing of the PBOC hike was any coincidence, as the monthly data deluge from China is scheduled for October 21.  It appears that price pressures and bank lending remain too strong for the…

by Michael Pettis The PBoC has just announced that it is hiking the one-year lending and deposit rates by 25 basis points. Here is what Bloomberg says: China raised its benchmark lending and deposit rates for the first time since 2007…

by Win Thin People’s Bank of China surprised markets with a 25 bp hike in early North American hours, taking the 1-year lending rate to 5.56% and the 1-year deposit rate to 2.5%.  This was the first official rate hike since December…

Highlights The US dollar has been put back in the driver seat as the Central Bank of China raised its one-year lending and deposit rate by 25 bps.  In effect, the move by the Chinese has drawn capital out of risk and reaffirmed the…

Highlights The dollar continued to edge higher through the Asian session, even making ground against the yen. EUR/USD slipped back towards $1.39, erasing the gains from the North American session, ahead of Germany’s ZEW report out later…

by Win Thin No big surprise from Brazil’s decision to boost the IOF tax again on fixed income foreign investment to 6% from 4% previously.  Still, this is a pretty strong statement since it comes just two weeks after it was hiked to…

by Win Thin Brazil central bank starts its two day meeting Tuesday, and market is looking for rates to be kept steady at 10.75%.  Though rates are expected to remain steady through 2010, market is looking for tightening to resume next…