Post Tagged with: "RBA"
RBA stays its hand
Australia’s central bank sprang a big surprise when it decided to leave the official cash rate unchanged at 4.25% overnight. The statement accompanying the announcement suggested that growth remained close to trend and that underlying inflation was currently around 2.5%, in the middle of the 2-3% target band. That said, a closer examination of the
Australian Dollar Recovers From Rate Cut
The RBA cut the interest rate in Australia by 0.25% to 4.25%, in a move that was widely expected. This is the second cut in a row. Glenn Stevens and his colleagues cut the rates from 4.75% to 4.50% on November 1st. The Aussie took a dive following this move, but it found support and
New European Governments Provide No Remedy
New governments are put in place, but it is becoming clear that it this will not help. The foundations and the basic expectation of creating growth with austerity are the problem here. Christopher Vecchio, a currency analyst with DailyFx.com discusses the European debt crisis, the impact of a possible failure of the US “Super Committee” to reach
Greece aims to shoot itself in the foot
Last week’s EU agreement was just about holding together until last night, when Greece threw in the curve-ball of announcing a referendum on the deal. Many Greeks feel that the option of full default, letting the bond-holders take the full hit is better than the restructuring currently being negotiated and the years of austerity currently
The day of reckoning
There’s a frustration on the part of some market participants that there is always such a strong focus on the US employment report, given that the labour market is a lagging indicator of economic fortunes. Nevertheless, the fact that the labour market has been lagging the recovery of the past two years has been the
Jackson Hole – Get Ready for a Disappointment
Expectations are quite high from Bernanke’s speech at Jackson Hole, and this may end in a disappointment. David Song of DailyFx discusses this important event, as well as other topics: What will happen in currency markets if we enter a recession, what is expecting us with central bank movements and more, in an interview. David
ECB puts the pedal to the metal
A measure of just how wrong the ECB has got things is the fact that it released a statement last night, just three days after its governing council meeting. In welcoming “the announcements made by the governments in Italy and Spain concerning new measures and reforms”, together with its commitment to “actively impllement its Securities
Hope keeps the boat afloat
There are two hopes that are underpinning markets right now. The first is that we are on a home straight on the US debt ceiling negotiations, with a new bi-partisan deal on the table. The second is that EU leaders, at their summit tomorrow, will start to pull together to ensure a credible second bail-out
Bernanke fails to feed markets
It was clear that after the recent run of soft data, some were desperate for Fed Chairman Bernanke to drop hints about further QE when he spoke yesterday. As it was, whilst he was fairly cautious on the economic outlook (describing the recovery as “frustratingly slow”), he didn’t throw out any bones for commodity, FX
Emerging curriencies in the ascendency
What’s been noticeable over the past week is the weight on developed market currencies. Emerging currencies put in their best performance last week for over a month, as the US and Europe were weighed down by concerns on both growth and also debt. Currency markets are very short-termist, but sometimes the divide between emerging market