Author: admin_mm

December 13
2007

Central Bank of Chile to Decide on Interest Rate Today

The Central Bank of Chile will be releasing its statement with the target interest rate. The current interest rate is maintained at 5.75% after three rate hikes by 0.25% going in a row from July to September 2007. Majority of the analysts surveyed about the forthcoming rate decision agree that the Chilean interest rate will […]

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December 13
2007

EUR/USD Bearish After Excellent Economic Data

EUR/USD began the day with some slow downtrend, but continued to accelerate its bearish tendencies after news releases from U.S. showed some well above average macroeconomic stats. Advance retail sales report for November from U.S. Census Bureau showed that this indicator increased by 1.2% compared with October — much better than 0.6%, which was expected by the market analysts. The Producer Price Index […]

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December 12
2007

U.A.E., Qatar, Bahrain and Saudi Arabia Cut Rates

The United Arab Emirates decided to cut their bank repository rate by 0.25% to 5.25%; Saudi Arabia decreased its benchmark rate for deposits also by 0.25% to 4.0%; Qatar and Bahrain reduced their deposit rates by the same amount — 0.25% to 4.0%. Kuwait refrained from changing the country’s interest rate, because they’ve already removed their currency’s peg to dollar back in May 2007. This rate change followed the cut by U.S. […]

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December 12
2007

Hungary May Abandon Forint Exchange Limits

Hungarian central bank, Magyar Nemzeti Bank (MNB), will probably find it necessary to bring an end to the limits of the euro/forint rate maximum change (which is at 15% currently) after country’s inflation report for November showed 7.1% growth, while the target inflation rate is just 3.0%. Tamas Vojnits, the analyst of OTP Bank, stated […]

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December 12
2007

Federal Reserve Lowers Interest Rate by 0.25%

The U.S. Federal Open Market Committee lowered its interest rate for open market operations by 25 basis points to 4.25%, while the discount rate for central bank to banks type of lending lending was also cut by 0.25% to 4.75%. This decision was much of a surprise to economists, because they expected a rate cut by 0.50% in both rates as the sure way to fight the menace of recession and to add some stability to the banking sector. The interest […]

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December 12
2007

EUR/USD Mildly Volatile on Trade Balance Data

EUR/USD was ranging today inside the yesterday’s rate limits which were formed with the bullish tendencies triggered by the Tuesday FOMC meeting’s statement. Main operational interest rate in the United States was cut by 25 basis points, which equals 0.25% — from 4.50% to 4.25%, while futures markets for the interest rate predicted a 0.50% cut. Today came out the information on the international trading balance deficit for October 2007 — it […]

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December 11
2007

Dollar Firmer Before Fed Rate Decision

Little time remains before today’s FOMC meeting, which will decide the future target interest rate for the U.S. banks. Dollar gained a some weight against euro on some marginal expectations that Federal Reserve will cut rates by just 25 basis points instead of 50 points predicted by the current futures rate. Financial markets expect not only the interest rate decision, but also the FOMC’s statement on the discount […]

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December 10
2007

Intervention Rumor Devalue Rupee

Indian rupee ended the start of the week with falling to 39.41 against the U.S. dollar making it the first rupee’s bearish close after two days of growth. The rupee sellout was caused by the rumor of the Reserve Bank of India intervention in the country’s Forex market. It wasn’t the first time for Indian […]

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December 10
2007

Australian Dollar Rises on Global Economy Optimism

Aussie was on a rising edge today on the better investors sentiments, spurred by the recent stock markets growth. Australian dollar gained against both dollar and Japanese yen — its main carry trade counterparts. Going through the upper average range of the previous week for AUD/USD was significantly helped by the yen depreciation, based on the new wave of carry trade entries. If Federal Reserve will decide to lower the interest rate by 50 basis […]

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December 10
2007

Chinese Yuan Rushed by Henry Paulson

U.S. Treasury Secretary Henry Paulson is going to visit China again in order to motivate the government to increase the pace of the change in which yuan would appreciate against U.S. dollar and other world currencies. Recently China urged their banks to use the advantage of the globally weak dollar to buy the American assets […]

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