May 29, 2017
Markets are closed Monday in the United States for Memorial Day, Great Britain for a late spring bank holiday, and both China and Taiwan for the Dragon Boat Festival. The dollar is down 0.3% against the peso, 0.2% versus sterling and 0.1% relative to the loonie, euro, Swiss franc and kiwi. The dollar has edged […] Read Article
May 28, 2017
Three matters attracted keen attention at the two-day summit of Group of Seven leaders in Taormina, Sicily: international terrorism, trade, and climate change. The first priority enjoyed the most agreement going into the meeting, and a considerable portion of the six-page communique is devoted to coordinating efforts to defeating terrorism in Syria, Libya, Iraq, North […] Read Article
May 29, 2017
Bank of Israel policymakers last changed their interest rate in February 2015 when a 15-basis point reduction capped an easing cycle that included 75 basis points of cut in each of the previous four years. Officials released a statement today the observed somewhat higher actual inflation and short-term expected inflation as well as solid growth and […] Read Article
May 24, 2017
The excerpts below lend credence to rising expectations that the federal funds rate target will undergo its fourth increase at the June meeting. At the same time, great emphasis is placed on ensuring that rate normalization proceed at a gradual pace. The same feeling surrounds balance sheet reduction, which also will proceed at a very […] Read Article
May 26, 2017
Numerous Holidays: U.S. Memorial Day and late spring bank holiday in the U.K. on Monday. Dragon Boat Festival in China (May 28-30) and Hong Kong (Tuesday). Pancasila Day in Indonesia on Thursday and Italy’s Republic Day on Friday. Central Bank Action: Policy meetings in Israel and Brazil. Release of Federal Reserve Beige Book and Bank […] More
May 26, 2017
Sterling fell 0.7% against the dollar overnight in response to a new poll showing just a 5-point spread between Prime Minister May’s Conservatives and the Labor Party; the spread earlier had been over 20 points. Britain’s parliamentary election is scheduled for June 8. Sterling declined more sharply against several other currencies, as the dollar is […] More
May 25, 2017
SARB’s repo rate had been raised in six steps to 7% from 5% between January 2014 and March 2016. The latest 5-1 voting decision not to change the 7% level has one dissenter, who as at the prior meeting favored cutting the rate to 6.75%. Although latest inflation readings were unexpectedly low, upside risks namely […] More
May 25, 2017
South Korea’s central bank base rate was again left at 1.25%. It’s been at that level since a 25-basis point cut in June 2016. Previously a pair of such reductions were each implemented in 2014 and 2015. A released statement after the May monthly policy review projects sub-target total core inflation in the mid- to […] More
May 25, 2017
A row broke out over U.S. leaking of key intelligence from the Manchester bombing investigation between the May and Trump governments just prior to today’s Nato meeting in Brussels. Prime Minister May will speak to President Trump about U.S. leaks, and Britain reportedly has stopped sharing information with U.S. on the matter. West Texas Intermediate crude […] More
May 24, 2017
There have been only five changes in the Bank of Canada interest rate, all by 25 basis points, since the Great Recession ended for a net change of +25 basis points. The first three moves in June-September of 2010 were increases, and the most recent two were cuts in January and July of 2015. A statement […] More
May 24, 2017
The policy interest rate of Magyar Nemzeti Bank has been just 0.90% since a trio of cuts in March, April and May of 2016. A statement of the latest review defends the appropriateness of continuing that level and warns that “if inflation remains persistently below the target, the Council will stand ready to ease monetary […] More
May 24, 2017
Thailand’s latest monetary policy review ended with a unanimous assertion of a continuing need for a growth-supporting accommodative stance. The monetary policy council retained a 1.5% policy rate. It’s been at that level since eight 25-basis point reductions implemented between November 2011 and April 2015. The seventh of those cuts was made in March 2015. […] More
May 24, 2017
Only industrial metal prices have reacted much to news that Moody’s downgraded its Chinese credit rating for the first time in nearly 30 years. Commodities have been the main mover today. Comex gold fell 0.3% to $1,251.70 per ounce. Industrial metal prices like nickel, iron ore, and copper tumbled much more steeply. But WTI oil […] More
May 23, 2017
The German business climate index compiled by the IFO Economic Institute increased 1.6 points in May to the highest level since German unification, a reading of 114.6. Current conditions went up 1.9 points, and expectations climbed 1.3 points in the latest month, prompting IFO officials to call the business mood euphoric and the pace of […] More
Currency Thoughts has evolved from a blog to a full-functioning website. This new design provides easier access to your favorite features and new capabilities to accept ads. In the future, it will be possible to register to accept emailed updates.
Posts