Monthly Archives: January 2010
Japan’s finmin pressures BOJ, deflation deepens
Japan’s finance minister urged the Bank of Japan on Friday to align policy with the deeply indebted government’s efforts to fight deflation, maintaining pressure for possible monetary easing or even government bond purchases. BOJ Governor Masaaki Shirakawa did not rule out any policy options but reiterated the current level of bond buying — a step some policymakers have called for to tame bond yield gains — was appropriate for now. Continue reading
Greece’s Debt Weighs Down Euro
The euro fell to its lowest point in six months against the dollar today as investors continue to shun the currency amidst growing concerns with the status of Greece’s overwhelming debt. Despite a vote of confidence from French Finance Minister Christine Lagarde, the euro fell to 1.3913 USD from Thursday’s close of 1.3966. Source: AFP News Continue reading
Fastest Growth since 2003!
This morning, the US Q4 GDP figures came in at a better than expected 5.7%, the fastest growth since 2003. While this is seemingly good news for the US economy as it marks the 2 nd straight quarter of growth providing further evidence that we moved forward from recession Continue reading
US Economy Grows 5.7% in 4th Quarter
The US economy grew 5.7 percent in the fourth quarter last year as measured by the Gross Domestic Product (GDP) . This is the fastest quarterly growth in six years Continue reading
Its All About Jobs!
This morning, it looks like risk appetite has returned to the forex market after yesterday’s FOMC meeting has been fully digested. The only thing “unexpected” from the meeting was that the decision was not unanimous, as KC Fed Chief Thomas Hoenig dissented and raised concerns about possible inflation. While this view will most probably be discounted for “an extended period” to use Fed parlance, it is interesting to see someone break from the pack Continue reading
US Durable Goods Beats Expectations
Orders for durable goods – products with a lifespan of three or more years – rose more than predicted in December providing further evidence that growth is slowly returning to the US economy. Part of the increase can be attributed to companies rebuilding their inventories and returning to planned capital projects that were put on hold during the recession. “Businesses are becoming more confident about the outlook and starting to invest in their expansion,” noted Zach Pandl, an economist at Nomura International Securities Inc Continue reading
Obama’s State of Union lifts global indices while dollar softens
A myriad of reasons has been supporting the dollar. Firstly, the dissent from Kansas City Fed President Hoenig yesterday after the FOMC rate announcement was a big boost for the buck Continue reading
Dr. Doom Goes to Davos
The annual meeting of economists, industry leaders, and politicians got under way in Davos, Switzerland earlier this week. Front and center on the opening day panel was Nouriel Roubini, Professor of Economics at the Stern School of Business, New York University. Continue reading