New Overnight Developments Abroad - Daily Update

Most Markets Closed for Good Friday Observances

April 18, 2014

The dollar is unchanged against the euro, Swissie, sterling, and yen.  The U.S. currency is down 0.2% vis-a-vis the kiwi and 0.1% relative to the Australian dollar and yuan.  The loonie has edged 0.1% lower. Japan’s Nikkei rose 0.7%. The 12-month rise in Chinese property prices, 7.7% in March after 8.7% in February, was at […] Read Article

Foreign Exchange Insights and Next Week

Next Week

April 19, 2014

Another holiday-interrupted week lies ahead.  Australia and many European centers such as Britain, Germany, France and Italy will remain shut on Monday for Easter Monday.  Then next Friday, Australian and New Zealand markets will be closed for Ansac Day. Central bank meetings are scheduled in Thailand, New Zealand, Turkey, Russia, Colombia and Mexico.  The Bank […] Read Article

Central Bank Watch

National Bank of Serbia Monetary Policy Not Changed

April 17, 2014

As also decided at prior meetings on January 16, February 13, and March 6, the Executive Board left its one-week repo rate unchanged at 9.5%, striking a balance between protecting financial stability and securing growth with price stability.  The key central bank interest rate had been cut 150 basis points in the final quarter of […] Read Article

Deeper Analysis

G20 Statement from Washington D.C.

April 12, 2014

G20 finance ministers and central bank governors meeting on the periphery of the World Bank/IMF semi-annual meetings released a statement that mostly lays out work to be done before the Brisbane Summit in September.  The statement says nothing about currency market policy coordination.  Strengthening growth is predicted, but vigilance must continue “in the face of […] Read Article

New Overnight Developments Abroad - Daily Update

Spoken Words

April 17, 2014

Bank of Japan Governor Kuroda reiterated his upbeat view that recovery will resume soon after the initial setback this quarter caused by a consumption tax.  While expressing satisfaction with current policy settings, he also indicated a readiness to augment stimulus if such becomes necessary.  The Bank of Japan released results of its quarterly branch managers […] More

Foreign Exchange Insights and Next Week

Emerging Market Currencies Is Where the Action Lies

April 16, 2014

The unremarkable changes in dollar values against other advanced economy currencies has been a frequent theme lately of the weekly currency market essay.  Regrettably, that stability has continued in April, where month-to-date dollar declines amount so far to 1.2% against the Aussie dollar, 1.0% versus the yen, 0.8% relative to sterling, 0.3% vis-a-vis the loonie […] More

Central Bank Watch

Bank of Canada Keeps 1.0% Overnight Interest Rate Target, Calling Policy Stance Appropriate

April 16, 2014

The third scheduled interest rate announcement of 2014 coincided with the release of a new Monetary Policy Report.  Estimates for 2016 have been added to the Bank of Canada’s macroeconomic forecasts.  While core inflation is seen hovering at 1.2% in the first half of this year and not returning to the 2.0% target until the […] More

New Overnight Developments Abroad - Daily Update

Lots of Data and a Better Tone in Equities

April 16, 2014

Japan’s Nikkei catapulted 3.0% higher, and stocks so far in Europe are up by 2.0% in Italy, 1.1% in Spain, 0.9% in France, 0.8% in Germany, 0.5% in Switzerland and 0.3% in Britain.  In other selected markets around the Pacific Rim, stocks gained 0.6% in Australia, 0.3% in New Zealand, 0.2% in Singapore and 0.1% […] More

Central Bank Watch

A Three-Percentage Point Ukraine Discount Rate Hike

April 15, 2014

On Monday, the National Bank of Ukraine Board raised the discount rate to 9.5% from 6.5%.  Civil unrest and meddling by Russia in the internal affairs of Ukraine have weighed heavily on the hyrvnia, lifting CPI inflation nearly threefold to 3.4% in March from the month before, and more acceleration is likely.  This week’s rate […] More

New Overnight Developments Abroad - Daily Update

Festering Concerns

April 15, 2014

Russia appears to be doing to Eastern Ukraine what it did in Crimea, and the West seems powerless to resolve the crisis. A day ahead of China’s release of first-quarter GDP, analysts anticipate a sub-7.5% growth rate. The ZEW Institute measures of investor sentiment toward Germany and the euro area fell in March. Investors await […] More

Central Bank Watch

Monetary Authority of Singapore’s Semi-Annual Policy Review

April 14, 2014

The last monetary policy change was a tightening in April 2012.  For the third semi-annual review in a row, MAS officials concluded that current settings remain appropriate.  Domestic interest rate policy is subordinated to an exchange rate target corridor, whose upward slope was steepened two years ago.  Today’s statement defends the current policy as follows, […] More

New Overnight Developments Abroad - Daily Update

Ukraine Crisis Keeps Equities on Offer

April 14, 2014

At Russia’s initiative, the U.N. Security Council debated the Ukraine crisis but made no progress toward fashioning a cool-down there.  Stocks began the week with losses of 1.3% in Australia, 0.6% in Taiwan and New Zealand, and 0.4% in Japan and India.  In Europe, equities are down 1.6% in Russia, 1.7% in Spain, 0.9% in […] More

Foreign Exchange Insights and Next Week

Next Week

April 11, 2014

The IMF/World Bank spring meetings in Washington, D.C. continue to run through the weekend of April 12-13.  Later today, a communique will be released jointly by the Group of Twenty finance ministers and central bank leaders.  Later next week, the Bank of Japan’s holds a quarterly branch managers meeting, the Federal Reserve Beige Book will […] More

Central Bank Watch

Central Reserve Bank Peru

April 11, 2014

Peru’s monetary policy bias remains skewed toward ease, but officials prefer to use non-interest rate instruments such as the further reserve requirement cut announced today after the monthly meeting.  The RR ratio drops to 12.0% from 12.5%, while the 4.0% reference interest rate was not changed.  This past November saw the reference rate reduced by […] More

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