New Overnight Developments Abroad - Daily Update

More Street Protests Rock U.S. Cities, Adding Uncertainty to Economy’s Reopening

June 1, 2020

It’s been an up-day for equities in Asia and Europe, but that trend may not extend to the United States where several cities (including NY, Chicago, Seattle, L.A., Atlanta and Philadelphia) experienced continuing racial protests with violence on Sunday. U.S.-Sino tensions remain very elevated. In lifting Hong Kong’s special trade status and threatening actions against […] Read Article

Foreign Exchange Insights and Next Week

Next Week’s Menu: May 30 – June 5, 2020

May 29, 2020

Next week ushers in the sixth month of 2020 and will be littered with several holidays and the release of many purchasing manager surveys. An uneven reopening of businesses will pick up pace. Central Banks: The European Central Bank, Reserve Bank of Australia, National Bank of Poland and Bank of Canada are holding monetary policy […] Read Article

Central Bank Watch

South Korean Central Bank Rate Cut after Big Downward Growth Forecast Revision

May 28, 2020

Another central bank interest rate cut was announced today, this time by the Bank of Korea, where by a unanimous decision the 7-day repo rate was lowered 25 basis points to 0.50%. This was the second cut of 2020 following a 50-basis point reduction back in March. The 0.50% level represents what officials have considered […] Read Article

Deeper Analysis

U.S. and Euro Area Manufacturing PMIs Compared

June 1, 2020

The table below compares the U.S. ISM-compiled and Euroland’s IHS-compiled manufacturing purchasing manager surveys. In May 2020, the U.S. index recovered 1.6 points to 43.1, whereas Euroland’s PMI rose 6.0 points to 39.4. May’s readings represent two-month highs in each instance, and while the spread between the two readings narrowed by a sizable 4.4 points […] Read Article

Deeper Analysis

May 2020 in Review

May 30, 2020

With the central bank interest rates featured below already historically low, none as in April were lowered during May. Moreover the sharp declines of ten-year sovereign debt yields in April were partly reversed in several instances this past months. The talk of plans around the world to begin loosening stay-at-home restrictions lifted equity markets sharply, […] More

New Overnight Developments Abroad - Daily Update

Month-End Flood of Data Paints May 2020 as Anything But Merry

May 29, 2020

During May, roughly 2.69 new cases of Covid-19 were identified worldwide, and over 133,000 died from the disease. The U.S. share of the total 362,829 identified deaths related to the pandemic remains at 28.5% even though the United States has just 4.3% of the world’s population. The racial protests in Minneapolis have spread to other […] More

New Overnight Developments Abroad - Daily Update

U.S.-Sino Tensions Mount but Dollar Steady and Equities Mostly Higher

May 28, 2020

The Chinese National People’s Congress passed the proposed Hong Kong security bill, disregarding President Trump’s warnings against doing that. Secretary State Pompeo said America will no longer consider the former British colony as autonomous, and the Trump Administration is mulling a range of sanctions against Beijing and had its call for a special UN Security […] More

New Overnight Developments Abroad - Daily Update

Reopening Fuels Optimism But Escalating U.S./Chinese Political Tensions Introduce Caution

May 27, 2020

Movements overnight in the dollar were mixed, with gains of 0.3% against the yuan, 0.4% relative to the Swiss franc, and 0.1% versus the yen but declines of 0.5% relative to the kiwi, 0.4% versus the euro, 0.3% against the loonie and Australian dollar and 0.1% relative to the peso. European stock markets advanced in […] More

New Overnight Developments Abroad - Daily Update

Broadly Softer Dollar amid More Hopeful Investor Mood

May 26, 2020

The evolution of the Covid-19 pandemic remains highly uncertain, but investors have chosen hope over fear at least for a day or so. Economies are being reopened at varying speeds, and there has been some encouraging news regarding vaccine development. Released economic data have confirmed improvement in many cases, meaning a slower implosion rather than […] More

New Overnight Developments Abroad - Daily Update

Holiday Closures Hit Pause Button

May 25, 2020

Markets on Monday lacked direction due to holiday observances in the United States for Memorial Day, Great Britain for its late Spring bank holiday, and many Islamic countries where Ramadan’s end is being celebrated. The dollar is unchanged from Friday’s close against the euro, Swiss franc, loonie and kiwi, while changes versus the yen, sterling, […] More

Deeper Analysis

GDP Contractions and Covid-19 Deaths

May 24, 2020

Not even a half year has passed since the earliest reports of a new and lethal illness in Wuhan China. The Covid-19 pandemic has been the biggest global news story of 2020 and very possibly will be in the spotlight for a good deal longer. First-quarter real GDP growth estimates have recently been reported in […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: May 23 – 29, 2020

May 22, 2020

Central Banks: Monetary policy meetings in South Korea, Hungary, Poland and Israel. Federal Reserve publishes Beige Book of regional economic conditions. Bank of Canada Governor Poloz speaks publicly. Holidays: U.S. Memorial Day and late spring British Bank holiday on Monday. Some Islamic countries to observe end of Ramadan. Scheduled U.S. Economic Statistical Releases: Quarterly GDP […] More

Central Bank Watch

40-Basis Point Indian Central Bank Interest Rate Cut on Top of March’s 75-Basis Point Reduction

May 22, 2020

The Reserve Bank of India Monetary Policy Committee also held an emergency policy review ahead of the regularly scheduled one previously set for early June. The Committee announced a 40-basis point reduction of its repo rate to 4.0%, which follows a previous 75 basis point cut in late March. Officials released a statement enumerating a […] More

Central Bank Watch

Bank of Japan Board Holds Emergency Session

May 22, 2020

The Bank of Japan held an emergency unscheduled policy Board meeting that lasted just under an hour and did not change the the short-term policy interest rate of -0.1% or the 10-year JGB yield target of around zero percent. However, officials did unveil a new lending facility for small to mid-sized firms and moved out […] More

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