New Overnight Developments Abroad - Daily Update

Difficult Talks with Greece as Time Begins to Run Out

April 24, 2015

The spotlight today is on a meeting of eurozone finance ministers, trying to secure a debt agreement with Greece.  The tentative deal back in February was contingent upon Greece undertaking reforms but the end of April.  Well here we are, with scant reforms, and Greek officials wanting aid first and then reforms to follow, but […] Read Article

Foreign Exchange Insights and Next Week

Next Week

April 24, 2015

Holidays:  Anzac Day: A holiday of remembrance for war dead in Australia and New Zealand falling on the April 25-26 weekend; New Zealand will be shut on April 27.  April 29: Showa Day in Japan, honoring the birthday of former Emperor Hirohito and marking the start of the Golden Week holidays.  May 1: May Day […] Read Article

Central Bank Watch

An Indirect Central Bank Approach to Containing Turkish Lira Depreciation

April 22, 2015

2015 is not even 31% complete, yet the beleaguered lira has fallen 15% against the dollar.  The danger is that currency weakness will lift inflation, which in March stood at 7.6%.  The currency’s weakness was amplified by cuts in the one-week repo rate of 50 basis points in January and 25 bps in February on […] Read Article

Deeper Analysis

Communique from G20 Finance Ministers and Central Bankers Unlikely to Be a Market Mover

April 17, 2015

The released two-page statement after meetings over two days in Washington contains little to excite market players.  Currency policy is boiled down to a single sentence: “We reaffirm our previous exchange rate commitments and will resist protectionism.”  The negotiations between the Greek government and its creditors is not addressed explicitly.  On the matter of global […] Read Article

New Overnight Developments Abroad - Daily Update

Weaker-than-Expected PMIs and a Market-Moving Comment from John McDermott

April 23, 2015

The kiwi slumped 1.4% after Reserve Bank of New Zealand Assistant Governor McDermott said that policymakers are not currently contemplating a further rise in the official cash rate. Otherwise the U.S. currency fell overnight by 0.6% against the Swiss franc and 0.1% versus the euro but rose by 0.4% relative to the Australian dollar, 0.2% […] More

Foreign Exchange Insights and Next Week

Dollar Paused in Troubling Times

April 22, 2015

In spite of disappointing U.S. growth for a second straight quarter, dollar demand sizzled in January-March.  Trading has been consolidating this month, and not merely pausing after such an upward spurt or even because of some convergence of macroeconomic trends between the United States and Europan.  These are disturbing times.  Each day, more bad news […] More

New Overnight Developments Abroad - Daily Update

Weaker Dollar Especially against the Ozzie and Sterling

April 22, 2015

The Australian dollar has risen 1.2% against its U.S. counterpart, buoyed by Aussie first-quarter CPI data that showed core inflation falling no further and remaining above 2.0% target floor. Sterling was lifted 0.7% against the dollar by Bank of England April 8-9 minutes that revealed not only a unanimous 9-0 vote for no change but […] More

Central Bank Watch

Another Hungarian Central Bank Base Rate Reduction

April 21, 2015

The Monetary Council at Magyar Nemzeti Bank sliced its base rate by 15 basis points to 1.95%.  A similar-sized cut at the March monthly meeting had broken a policy pause over the eight prior months.  For two years from August 2012 through July 2014, policy was loosened every month, taking the base rate from 7.0% […] More

New Overnight Developments Abroad - Daily Update

Greek Deficit Worries Depress Euro

April 21, 2015

The dollar rose overnight by 0.5% against the euro, 0.3% versus the Swiss franc, 0.2% vis-a-vis the yen and sterling, and 0.1% relative to the loonie but is unchanged against the yuan and Australian dollar and down 0.4% against the kiwi. Greek share prices have slumped 3.3%.  The Chinese and Hong Kong stock markets closed […] More

Central Bank Watch

People’s Bank of China Slashes Banks’ Reserve Requirement to 18.5% from 19.5%

April 20, 2015

Sunday’s announcement was double the size of this year’s initial reduction of the reserve requirement ratio in February.  February’s 50-bp cut — the more typical magnitude of changes — had been the first cut since and easing in May 2012 capped off a flurry of three cuts in the space of a half-year.  The backdrop […] More

New Overnight Developments Abroad - Daily Update

Market Reaction to Chinese Monetary Easing

April 20, 2015

The People’s Bank of China slashed its reserve requirement to 18.5% from 19.5%.  The full-percentage point reduction was twice as great as a previous 50-bp cut announced on February 4 and came in reaction to weaker GDP and other data announced last week.  February’s cut had been the first since three 50-bp reductions engineered in […] More

Foreign Exchange Insights and Next Week

Next Week

April 17, 2015

Central Bank Watch:  Hungary and Turkey hold interest rate policy meetings.  Minutes will be published from the policy meetings in Britain and Australia held earlier this month.  RBA Governor Stevens and BOJ Deputy Governor Nakaso speak publicly. Special Meetings:  The semi-annual IMF meetings in Washington run April 17-19.  A meeting of eurozone finance ministers is […] More

New Overnight Developments Abroad - Daily Update

Large Setback in European Share Prices

April 17, 2015

Markets are hedging against the once-unthinkable possibilities of a Greek debt default or Greece leaving the common European currency area or both, and there is fear that the consequences will not hit Greece alone. Share prices have dropped by 2.2% in Italy, 2.1% in Spain, 1.9% in Germany, 1.4% in France, 1.2% in Greece and […] More

Central Bank Watch

Central Bank of Chile

April 16, 2015

Board members left Chile’s monetary policy rate at 3.0% as analysts expected.  Beginning in January 2012, the interest rate was cut in 25-basis point increments then, October and November 2013, February, March, July, August, September and October of 2014, but not any further during the last half year.  On-year CPI inflation of 4.2% as of […] More

css.php