New Overnight Developments Abroad - Daily Update

European GDP, U.S. Retail Sales and Industrial Production, Continuing Coronavirus Spread, and Another Trump Dispute With Own Government People

February 14, 2020

From a news standpoint, Friday has been a very busy day, but financial market movements have been tempered. Mid-morning in NY finds the dollar up 0.2% against the Swiss franc and sterling and plus-or-minus 0.1% relative to other key currencies. Share prices fell 0.6% in Japan and 0.5% in India and New Zealand but up […] Read Article

Foreign Exchange Insights and Next Week

Next Week’s Menu: February 15 – 21, 2020

February 14, 2020

Central Banks: Interest rate policies will be reviewed in Turkey, Indonesia, and China. Minutes of the most recent monetary policy meetings to be published by the Fed, European Central Bank, and Reserve Bank of Australia. Brainard, Bostic, Barkin, Kashkari and Clarida are some of the Fed officials with scheduled public speaking events.  Holidays and Special […] Read Article

Central Bank Watch

Mexico’s Fifth Central Bank Rate Cut Since Last August

February 13, 2020

The Governing Board of the Mexico has just reduced its overnight interbank interest rate to a 3-year low of 7.0% from 7.25%. Four prior cuts in 2019 were made in August, September, November and December — each by 25 basis points as well. That reverses half of 250 basis points of tightening in 2017-2018. A […] Read Article

Deeper Analysis

January 2020 in Figures

January 31, 2020

The month of January presents another recent example of a time when key dollar pairs against the euro, yen, Swiss franc or sterling hardly moved on balance even as other financial markets underwent big changes. It was a month subjected to big distortions toward the end in the face of China’s rapidly spreading health crisis. […] Read Article

New Overnight Developments Abroad - Daily Update

Coronavirus Takes Turn for the Worse, and British Cabinet Reshuffled Significantly

February 13, 2020

Thursday has been a difficult day in world financial markets, absorbing the news of an exponential increase in suspected coronavirus cases, as well as the unexpected quitting of British Chancellor of the Exchequer Javid and departure of several other members of Prime Minister Johnson’s cabinet. Share prices tumbled 1.6% in Great Britain, 1.2% in Spain, […] More

Foreign Exchange Insights and Next Week

A U.S. President’s Attitude Toward the Dollar Can Indeed Influence its Performance

February 12, 2020

As a candidate for president and since stepping into that job, Donald Trump has disparaged virtually every aspect of his predecessor’s record including how he handled the economy. And while touting his own record, the U.S. economic performance of the past three years has looked like an extension of the Obama stewardship in several respects. […] More

New Overnight Developments Abroad - Daily Update

Equity Markets Rise and Dollar Narrowly Mixed

February 12, 2020

Fed Chairman Powell will reprise yesterday’s upbeat Humphrey Hawkins testimony today before the Senate Banking Committee. He characterized the U.S. economy as “in a very good place” and said policy would react to the coronavirus impact only if such proves “persistent and material.” Recent remarks by other Fed officials such as Harker, Daly, and Bullard […] More

New Overnight Developments Abroad - Daily Update

Beijing Promises Stimulus for Smaller Firms, and Investors Await Fed Chairman Powell’s Humphrey Hawkins Testimony

February 11, 2020

A pledge by China’s government to counteract any drag on growth from the coronavirus outbreak with fiscal support aimed at small and midsized companies boosted share prices in the Pacific Rim by 1.3% in Hong Kong and New Zealand, 1.0% in South Korea, 0.8% in Taiwan, 0.6% in India and 0.4% in Singapore and China. […] More

New Overnight Developments Abroad - Daily Update

Comparatively Steady Dollar to Start Week

February 10, 2020

The dollar is unchanged from Friday closing levels against the yen, Swiss franc, loonie, and kiwi, and it has edged a mere 0.1% lower relative to the euro, Aussie dollar and peso. Bigger drops can be seen of 0.3% versus the yuan and 0.4% relative to sterling. Share prices fell 0.5-0.8% in a number of […] More

Foreign Exchange Insights and Next Week

Coming Week’s Menu: February 8-14

February 8, 2020

Central Banks: Monetary stances will be reviews by central banks in New Zealand, Sweden, Mexico, Peru, and Serbia. Fed Chairman Powell gives his semi-annual two-day congressional testimony on Tuesday-Wednesday, first before the House Financial Services Committee and then in reprise the following day before the Senate Banking Committee. Numerous other central bankers have will speak […] More

Central Bank Watch

Central Bank of the Russian Federation

February 7, 2020

The Central Bank of Russia’s one-week repo rate was reduced further today. The cut was 25 basis points to 6.0%, matching similar moves in December, September, July, and June. Last October, such was cut by 50 basis points. A released statement flags the possibility of more easing ahead insofar as inflation has dropped more sharply […] More

New Overnight Developments Abroad - Daily Update

Dollar Extending Gains Against Commodity-Sensitive Currencies

February 7, 2020

The dollar rose overnight by a further 0.7% against the kiwi, peso, Russian ruble, and Aussie dollar and by 0.5% relative to the Chinese yuan. The dollar dropped 0.3% versus the yen and 0.1% vis-a-vis sterling but is unchanged against the euro. Intensifying concern about the spreading coronavirus epidemic provided an excuse for profit-taking in […] More

Central Bank Watch

Czech National Bank

February 6, 2020

The Czech rate decision, a hike of the 2-week Czech National Bank repo rate to 2.25% from 2.0%, was a surprise and reflects a razor-thin 4-3 voting margin by the Monetary Board. Due in part to higher indirect taxes, CPI inflation has risen to 3.2%, highest since late 2012, and officials don’t expect such to […] More

Central Bank Watch

Rate Cut in the Philippines

February 6, 2020

Also as had been anticipated by analysts, the Filipino reverse repo rate was cut 25 basis points to 3.75%. Such is the fourth such reduction since last May and the first change since September. Inflation has risen to 2.9%, but that is still just in the middle of the central bank’s target of 2-4%. “the […] More

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