Recap 2-11-13


NY Fed: Why do large movements in exchange rates have small effects on international goods prices? [Because] the largest exporters, which are simultaneously the largest importers, have an exchange rate pass-through of only slightly above 50 percent.


  • The G20 is mulling an unusual step of releasing a statement before the actual meeting takes place to calm the market’s concerns about a full-blown currency war. Apparently the statement goes beyond the G7’s long-standing commitment to market-based exchange rates and calls for countries to avoid using fiscal or monetary policy to deliberately weaken exchange rates. G-7 officials plan to make individual comments in coming days, even if they haven’t agreed on a joint statement.
  • Rajoy published 10 years worth of tax information Sat and his PP released 4 years of financial information all in an effort to quell questions stemming from a recent payments scandal. The opposition parties said a lot of questions were left unanswered. A poll taken in recent newspapers said 79% were failed to be convinced he is cleared of wrongdoing.
  • The economy minister in Japan said over the weekend that he would like to see the Nikkei reach 13,000 by March.
  • Abe’s popularity is soaring according to a new poll – WSJ

Upcoming Data:

  • Tue: UK CPI, US State of the Union
  • Wed: BoE Inflation Report, US Retail Sales, Oil Inventories, Japan GDP
  • Thu: BoJ, EU 4Q GDP, US Jobless Claims
  • Fri: G20, US Existing Home Sales