Currency Market Updates

Can Central Banks encourage interbank lending?

Can Central Banks encourage interbank lending?
As the market expected the ECB tweaked deposit rates to encourage more interbank lending. The ECB cut the rate it pays to deposit overnight money and increased the rate it charges for emergency loans. The concern from the ECB is that whilst they have slashed their base rate at [...]

Unprecedented Lows BUT….…. where do we go from here?

Unprecedented Lows BUT….…. where do we go from here?
The Federal Reserve, at their meeting yesterday evening, cut the Federal Funds target rate (the rate at which US Banks can borrow in the overnight) by a massive 75bp to a range of 0% to 0.25% and was additionally very aggressive in the statement that followed. The [...]

The US Dollar has a bumpy ride

The US Dollar has a bumpy ride ….… following the marginally weaker than expected data yesterday afternoon and a growing anticipation of a greater than 50bp cut in the Fed Funds target rate this evening. We saw highs in cable and euro at a tad over 1.5350 and 1.3725 respectively before caution again took the [...]

Little New Data out over the Weekend

The Little New Data out over the Weekend …….
… and so most column inches were taken up with re-hashing old news. The automotive and aviation industries obtained most coverage with expectations that the bail-out of the Big 3 US car manufacturers will be looked at again early in the week and re-presented for approval whilst [...]

US Auto Manufacturers Bail-Out Rejection

US Auto Manufacturers Bail-Out Rejection…
… looks like an absolute disaster for Stocks, Commodities and just for a change, Sterling.
The Senate in the US last night, rejected the $14 billion bail-out plan that would have seen a deferment of the cash crisis at GM and Chrysler much to the dismay of markets that were still operating [...]

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