New Overnight Developments Abroad - Daily Update

Dollar Grinds Lower and European Equities Fall Sharply

July 21, 2017

The dollar lost another 0.6% against the yen, 0.5% versus the kiwi, 0.4% relative to the Swiss franc, 0.3% vis-a-vis the loonie, 0.2% against the euro and 0.1% versus sterling. The dollar made gains of 0.5% against the Aussie dollar, o.3% versus the Mexican peso and 0.1% relative to the yuan. Investors are reacting to […] Read Article

Foreign Exchange Insights and Next Week

Next Week

July 21, 2017

Central Bank: Monetary policy meetings in the United States (but no press conference afterwards), Brazil, Russia, Turkey and Colombia. Bank of Japan to release a “summary” of its July meeting and minutes from its June Board meeting. Reserve Bank of Australia Governor Lowe speaks publicly. Special Event: Meeting scheduled for Monday in St. Petersburg, Russia […] Read Article

Central Bank Watch

South African Reserve Bank Repo Rate Cut

July 20, 2017

South Africa’s central bank interest rate was cut for the first time in several years, and the decision drew dissents favoring no change by two of the Monetary Policy Committee’s six members. South African GDP unexpectedly contracted in the first quarter in a broad-based way. The growth outlook has worsened. Excess product supplies will consequently […] Read Article

Deeper Analysis

The U.S. Enjoyed a Bigger Growth Advantage in June than May

July 6, 2017

It was already reported earlier this week by the Institute of Supply Management that the U.S. manufacturing purchasing managers index leaped 2.9 points to a 32-month high of 57.8 in June. This eclipsed a 0.4-point rise in Euroland’s comparable PMI to 57.4. Now comes word that the non-manufacturing U.S. PMI increased 0.5 points to a […] Read Article

Central Bank Watch

European Central Bank Espouses Patience and Persistence

July 20, 2017

The latest Governing Council statement expresses growing confidence in growth and a return of inflation to target but fails to define when policy stimulus will be throttled back and the possible timetable for such a process. The signals are mixed. The statement reiterates that quantitative stimulus will continue for as long as necessary and doesn’t […] More

Central Bank Watch

Bank of Japan: Same old, Same old

July 20, 2017

Japanese monetary policy, although institutionally independent, suffers from chronically rigid thinking. The latest policy review produced 1) unchanged policy settings,2) another 7-2 vote with Kiuchi and Sato objecting to the majority’s policy preference for the same reasons that they have dissented at countless prior meetings, and 3) yet another outward push in the collective projected […] More

New Overnight Developments Abroad - Daily Update

Euro Strengthens With ECB in the Spotlight

July 20, 2017

The euro advanced 0.6% against the dollar and is not far beneath $1.16. The dollar otherwise climbed 0.4% relative to sterling, 0.3% versus the yen and Aussie dollar, 0.2% relative to the yuan and 0.1% versus the peso. The dollar dipped 0.1% against the Swissy and loonie. WTI crude oil rose 0.4% to $47.31 per […] More

New Overnight Developments Abroad - Daily Update

Focus Shifting to Upcoming ECB and BOJ Monetary Policy Reviews

July 19, 2017

Yesterday’s story centered on the failed U.S. healthcare repeal and replace bill, which sent the dollar sharply lower. The dollar today has declined a further 0.4% against the yen and Australian dollar, 0.3% relative to the loonie and kiwi, and 0.1% vis-a-vis sterling and the Swiss franc. But the dollar recovered 0.2% against the euro […] More

New Overnight Developments Abroad - Daily Update

Dollar Continues to Slide

July 18, 2017

The inability of the U.S. Republican Congress to pass legislation in the Trump era took a further toll on the dollar today. Gold rose. Stocks stalled, and long-term interest rates are lower. Subdued inflation remains a global economic trend. U.S. import prices slid 0.2% on month in June after a 0.1% dip in May and […] More

New Overnight Developments Abroad - Daily Update

Better-than-Forecast Chinese Data Tops a Light Start to the Week

July 17, 2017

Despite slight appreciation overnight, the dollar remains at rather soft levels such as 1.1445 per euro and JPY 112.60.  Commodity prices are somewhat firmer. WTI oil, for instance, rose 0.4%, and Comex gold is up 0.2%. But commodity-sensitive currencies have dipped. The Canadian and Australian dollars softened 0.1% and 0.2%. The kiwi lost 0.3%, responding […] More

Foreign Exchange Insights and Next Week

Next Week

July 14, 2017

Central Banks: The European Central Bank, Bank of Japan, South African Reserve Bank, Bank Indonesia and Magyar Nemzeti Bank will hold monetary policy meetings. Minutes from the last Reserve Bank of Australia meeting and an updated Bank of Japan Outlook will be published. ECB President Draghi and BOJ Governor Kuroda will preside over press conferences. […] More

New Overnight Developments Abroad - Daily Update

Awaiting Important U.S. Data

July 14, 2017

U.S. statistics will be reported today on consumer prices, retail sales, industrial production and the Reuters/U. Michigan consumer sentiment survey. Market direction on the dollar and stocks awaits those reports. European sovereign debt yields fell overnight by six basis points in Spain, five bps in Italy, 3 bps in France, 2 bps in Germany and […] More

Central Bank Watch

Central Reserve Bank of Peru’s Reference Rate Cut to 18-Month Low of 3.75%

July 13, 2017

Peru’s central bank rate 25-basis point cut this month was the second one of 2017 and returns the level to its lowest point since mid-December 2015 to mid-January of 2016. Both headline and core inflation are falling according to a released statement, and they are within the 1-3% target range. Expected inflation is also creeping […] More

Central Bank Watch

Bank Negara Malaysia

July 13, 2017

Malaysia’s central bank policy rate was maintained at 3.0%, its rate for the past year. There had been cuts of 25 basis points in both July 2014 and July 2016. Expectations of a possible rate hike later this year have faded as a spike in inflation is being unwound gradually. A statement released today indicates […] More

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