China’s yuan is facing increasing pressure to appreciate because of a widening interest-rate differential, the country’s top currency regulator said in a statement.
Speculative capital is flowing into China disguised as foreign direct investment and trade accounts through “underground money shops,” Yi Gang, head of the State Administration of Foreign Exchange, said at a briefing in Beijing today.
The [...]

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WASHINGTON: The US Federal Reserve is expected to hike benchmark interest rates within six months as the economy recovers from one of the most brutal recessions, a poll among economists showed Monday.
When asked what monetary policy posture they would prefer in the next six months, 63 per cent of 203 economists of the National Association [...]

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Toyota Motor Corp. will offer incentives including no-interest loans and discounted leases to win back buyers as the world’s largest carmaker tries to offset a U.S. sales slump amid record vehicle recalls.
From this month, Toyota buyers can choose either a loan with no interest for as long as five years or a low-cost lease on models [...]

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The biggest Australian jobs boom in five years may make it harder for central bank GovernorGlenn Stevens to extend a pause in recent interest-rate gains.
Investors doubled bets the Reserve Bank of Australia will raise the overnight cash rate target by a quarter percentage point to 4 percent next month after a report yesterday showed employers added [...]

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Federal Reserve Chairman Ben Bernanke Wednesday detailed how the U.S. central bank will begin to wean the economy off its extraordinary stimulus, even as he stressed it was not yet time to do so.

Bernanke said the Fed would likely begin tightening monetary policy by removing cash from the financial system before it turns to raise [...]

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SYDNEY: Australia’s treasurer said on Sunday the government would withdraw its bank funding guarantee due to improved conditions, ending a scheme put in place at the height of the global crisis.
Treasurer Wayne Swan said the Council of Financial Regulators had recommended ending the measure, which he said had been vital in stabilising Australia’s banking system [...]

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FRANKFURT: A European Central Bank meeting on Thursday will be dominated by concerns over debt-ridden Greece and other countries with high public deficits that have pushed the eurozone into its worst-ever crisis.
Economists polled by Dow Jones Newswires expect the ECB’s main interest rate to stay at a record low of one per cent for most [...]

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LONDON: The Bank of England on Thursday is expected to call an end to its radical policy of pumping out new money after Britain narrowly emerged from recession in the fourth quarter of 2009, analysts said.
Most economists also predict that the central bank’s Monetary Policy Committee (MPC) will leave its key interest rate unchanged at [...]

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Australia’s central bank held its key cash rate steady at 3.75 percent on Tuesday, stunning investors who had confidently expected a rise to 4.0 percent and sending the local dollar tumbling.
However, the Reserve Bank of Australia (RBA) did say that  further rate rise were likely to be needed over time if the  economy improved as [...]

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Think the TARP tax rocked the market? That doesn’t compare to the next possible jolt it may get.
But don’t panic –  this jolt should be bullish and take the market higher.
Now make no mistake – this is strictly chatter from the forex markets and they’re “the Wild West,” explains top trader Brian Kelly of Kanundrum. A [...]

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