“Practical men…are usually the slaves… some academic scribbler of a few years back” – John Maynard Keynes. For monetary policy to be most effective, Michael Woodford emphasised the crucial importance of managing expectations. For this purpose, he advocated that central banks adopt explicit rules …
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To exit the Great Recession, central banks must adapt their policies and models
U.S. stocks rose on Wednesday, helped by a rebound in Apple shares, while expectations for a stronger economy and thus higher interest rates from the Federal Reserve boosted the dollar to a six-year high against the yen. Yields on U.S. Treasuries continued their advance higher, with investors inc…
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U.S. stocks rise on Apple; rate hike views boost dollar
Statement issued by Reserve Bank Governor Graeme Wheeler: The Reserve Bank today left the Official Cash Rate unchanged at 3.5 percent. New Zealand’s economy is expected to grow at an annual pace of 3.7 percent over 2014. Global financial conditions remain very accommodative and are reflected i…
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OCR unchanged at 3.5 percent
GBP/USD is shaking, rattling and rolling on any news related to Scotland. BOE Governor Mark Carney, who was previously the king of pound volatility, only has a temporary impact, despite some interesting statements. Pound trading is dominated by headlines regarding the referendum on Scottish…
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Scotland Referendum: what the betting odds imply for GBP/USD
U.S. government debt fell for a fifth day, the longest skid in three months, amid concern investors are underestimating when the Federal Reserve will raise borrowing costs next year. Yields on benchmark 10-year notes reached the highest in a month, bolstering foreign demand at the government’s au…
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Treasuries Fall 5th Day in Worst Slump Since June on Fed
GAIN Capital Holdings, Inc. (NYSE: GCAP, “GAIN” or “the Company”) today reported certain operating metrics for the month of August 2014. Retail metrics Retail OTC trading volume of $183.3 billion, virtually unchanged from July 2014 and an increase of 48.8% from August 2013. Average daily retail O…
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GAIN Capital Announces Monthly Metrics for August 2014
A new opinion poll on Scottish independence has found the no vote back in the lead at 53% of voters, suggesting the sudden surge in backing for independence has subsided. Only days after a spate of polls suggested the referendum race was neck and neck, the Survation poll for the Daily Record has …
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Scottish independence: new poll gives no vote six-point lead
USDCAD has been up and down on the day. The last leg today, has been down. Having said that, the pair is testing support against the high from September 3rd, the lower channel trend line (bull flag), and is in between the 38.2 of the move up from September 4 low (see hourly chart below). So in…
The Bank of Japan drove a short-term interest rate below zero, a dramatic step in its already unprecedented effort to stoke inflation and a likely sign it will continue its aggressive asset purchases. The BOJ bought three-month bills for more than their redemption value on Tuesday, traders said, …
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BOJ drives rates below zero, stepping up aggressive easing
Scottish newspaper Daily Record reports latest indyref poll has 53% No, 47% Yes
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Scottish newspaper reports latest indyref poll has 53% No, 47% Yes
No, it was not a hint. U.S. bond yields moved higher this week after investors took a San Francisco Fed research paper as some sort of hidden signal from the central bank. But it wasnt, Fed watchers said. “Research from Fed staffers has not been a reliable guide to policy outcomes. It has been…
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No hidden signal in the San Francisco Fed paper, economists say
China’s money-supply growth slowed in August to its lowest level in five months, Premier Li Keqiang said, as he stressed Beijing’s commitment to shift away from printing money to stimulate growth. Speaking to business leaders on Monday in the northeastern city of Tianjin on the eve of the World E…
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China’s money supply growth slows
U.K. 10-year government bonds dropped for a third day as Bank of England Governor Mark Carney reiterated the time to increasing borrowing costs from a record low has moved closer. Longer-maturity gilts led declines after Carney told delegates yesterday at the annual conference of the Trades Union…
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U.K. Bonds Drop a 3rd Day as Carney Says Rate Increase Is Closer
Ladies and Gentlemen, I would first like to thank you for inviting me to deliver the closing speech of this high-caliber conference. I would the previous two panel discussions not be fair if I would dare to attempt a summary of the day. Instead, I want to conclude an arch span of the financi…
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Mersch: For a European Union Capital Market – Stability Security, Overcomes Fragmentation
U.S. crude stocks fell as expected last week, while gasoline and distillate inventories rose sharply as refiners boosted operations, data from the Energy Information Administration showed on Wednesday. Crude inventories fell by 1 million barrels in the last week, compared with analysts’ expectati…
Bank of England Monetary Policy Committee member David Miles said Wednesday that he sees more slack in the labor market than many of his eight colleagues, and no “immediate urgency” for a rise in the U.K. central bank’s benchmark interest rate. BOE Governor Mark Carney signaled Tuesday that the b…
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BOE’s Miles: No ‘Urgency’ for Rate Increase
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U.S. July wholesale inventories rise 0.1 pct
We have recently noted the increasing pressure on the Swiss National Bank (SNB) over its peg to the EUR in the midst of a capital flood from Europe. The slow bleed strengthening of CHF against EUR had many concerned the SNB would be forced (by exogenous factors) to adjust the peg. But, this morning,…
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Swiss Franc Tumbles On Threats NIRP Coming To Bern Next
Measures could include negative rates These comments are from an SNB spokesman whose phone is probably red hot at the moment from journo’s calling him up after the comments from Moser EUR/CHF deciding what it wants to do now after touching a high of 1.2118 Tough decision to make now for swi…
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SNB says measures could include negative rates: Spokesman Meier
We have identified two forces lifting the US dollar: positive developments in the US and negative developments elsewhere. Last week’s ECB meeting and next week’s FOMC meeting, however, are not the driving forces presently. Three issues dominate the foreign exchange market. First, the risk …
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Less of a Dollar Story, More about Sterling, Yen and Aussie
