New Overnight Developments Abroad - Daily Update

Dovish Rhetoric

October 17, 2014

Markets have a better tone. aided by some dovish remarks from Fed’s Bullard (maybe QE3 shouldn’t end now), Coerce (ECB to start buying assets very soon), Nowotny (euro depreciation constructive), Haldane (British data point to later rate hike rather than sooner), and Kuroda (BOJ easing to continue until 2% inflation secured).  The 10-year Treasury futures […] Read Article

Foreign Exchange Insights and Next Week

Next Week

October 17, 2014

Central Bank interest rate meetings are scheduled next week in Canada, Norway, the Philippines and Turkey.  Central Banks in the U.K. and Australia release minutes of their meeting earlier this month, and the Bank of Canada publishes a quarterly Monetary Policy Report. U.S. existing and new home sales data will be released, along with consumer […] Read Article

Central Bank Watch

Another Chilean Interest Rate Cut

October 17, 2014

Officials at the Central Bank of Chile announced late Thursday the eighth interest rate cut in a year.  The key rate was reduced previously in October and November of 2013 and February, March, July, August, and September of this year.  All these cuts have been by 25 basis points, and the benchmark is now 3.0% […] Read Article

Deeper Analysis

Who’s Easing Monetary Policy; Who’s Been Tightening

October 16, 2014

Central banks cut interest rates during the first half of October in South Korea and Poland.  Rates were cut in September in Romania, Sri Lanka, Chile, Peru, and Euroland, where the ECB Governing Council also  introduced several unconventional measures to loosen policy.  Between May and August, rates were cut in Sweden, Turkey, Hungary, Thailand, Israel, Serbia […] Read Article

Central Bank Watch

Unchanged Serbian Monetary Policy Rate

October 16, 2014

The Executive Board of the National Bank of Serbia left monetary policy on pause.  The benchmark interests rate had been cut by 225 basis points over the final two-thirds of 2013 but by a further 50 basis points each in May and June of this year to 8.5%.  But a released statement after this month’s […] More

New Overnight Developments Abroad - Daily Update

No Respite from Volatility

October 16, 2014

The dollar and yen were well bid overnight.  Japan’s currency climbed 0.3% against the greenback, which otherwise advanced 1.3% relative to the Australian dollar, 0.9% vis-a-vis the kiwi, 0.8% against the loonie, 0.6% versus the euro and Swissie but just 0.1% against sterling. Stocks slumped overnight by 2.2% in Japan, 1.4% in Singapore, 1.3% in […] More

Foreign Exchange Insights and Next Week

Never Underestimate the Power of Fear Itself

October 15, 2014

These are fearful times for financial markets and the general public.  It’s much easier to believe in Murphy’s Law that if something can go wrong it will than to dismiss the recent market swings as fleeting hysteria that will self-correct because economic trends are fundamentally sound.  The list of stress points is lengthy: Euroland is […] More

Central Bank Watch

Bank of Korea Cuts Seven-Day Repo Rate

October 15, 2014

Citing sluggish capital investment, subdued business confidence, a later likely end to the current output gap, and thus weaker inflationary pressure than foreseen previously, the Bank of Korea released a statement explaining its reasons for cutting the key interest rate to 2.0%.  This level matches the post-Great Recession low maintained from April 2009 until a […] More

New Overnight Developments Abroad - Daily Update

Sinking Commodities Squelching Any Threat of Higher Inflation

October 15, 2014

WTI oil at $80.83 per barrel is down 1.2% on the day, bring its cumulative drop since June 20 to 24.4%.  Comex gold at $1,223.20 per ounce is down 0.9% on the day and 31% below its level of two years ago.  The Bloomberg Commodity index hit a 5-1/4 year low today.  The International Energy […] More

Central Bank Watch

Monetary Authority of Singapore’s Semi-Annual Policy Review

October 14, 2014

The operating target of monetary policy is an exchange rate corridor, and interest rates are kept at whatever level will meet the S-dollar’s target. Like the previous four semi-annual reviews, the mid-point, slope, and width of the exchange rate target band were left unchanged.  The target allows for a “modest and gradual” appreciation of the […] More

New Overnight Developments Abroad - Daily Update

Another Volatile Trading Session

October 14, 2014

The dollar is stronger except against the yuan and yen.  Especially large advances of 1.0% and over 1.5% have occurred against sterling and the Swedish krona following reports of that British CPI inflation fell 0.3 percentage points (ppts) to a 5-year low of 1.2% and Swedish consumer prices, also in the year to September, had […] More

New Overnight Developments Abroad - Daily Update

Markets Closed for Holiday in Japan, the United States and Canada

October 13, 2014

After last week’s swoon, financial market volume on Monday will be suppressed by three market closures, Japan for Health and Sports Day, the U.S. for Columbus Day, and Canada for Thanksgiving. Stocks in the Pacific Basin closed down 2.8% in Taiwan, 1.1% in New Zealand, 1.0% in Indonesia, 0.7% in Singapore and South Korea, 0.6% […] More

Foreign Exchange Insights and Next Week

Next Week

October 10, 2014

The annual meeting of the IMF/World Bank continues place in Washington this weekend. A triple Monday holiday kicks off the week: Columbus Day in the U.S., Thanksgiving in Canada and Health/Sports Day in Japan. Central bank policy meetings are scheduled in South Korea, Chile and Serbia.  The Fed Beige Book of regional trends arrives on […] More

New Overnight Developments Abroad - Daily Update

Weak Data Fuels Further Selling Pressure on Oil and Equities

October 10, 2014

Equities sold off further in Asia and Europe. The dollar is mostly higher.  Many in the U.S. are observing a 3-day weekend for the Columbus Day holiday. WTI oil dropped more than 1% to $84.55. Gold is 0.2% softer. 10-year gilt yields are five basis points lower.  10-year sovereign debt yields remain below 1.0% in […] More

css.php