New Overnight Developments Abroad - Daily Update

Investors More Inclined to Taking a Risk

January 19, 2021

Stock markets closed on Tuesday up 2.7% in Hong Kong, 2.6% in China, 1.7% in India, 1.4% in Japan and appear headed for a rise of almost 1.0% on the U.S. open. European markets held back, with upticks so far of just 0.2% in Germany and 0.1% in the U.K. and France. Refuge currencies like […] Read Article

Foreign Exchange Insights and Next Week

Next Week’s Menu: January 16-22, 2021

January 15, 2021

Central Banks: Many central bank policy reviews are scheduled next week, involving among others Canada, Japan, Euroland, Mexico, Norway, Turkey, South Africa, Malaysia, Brazil, Ukraine, China, and Indonesia. European Central Bank President Lagarde, Bank of Canada Governor Macklem, and Bank of Japan Governor Kuroda will be holding press conferences, and the Bank of England’s Haldane, […] Read Article

Central Bank Watch

Romanian Central Bank Rate Cut

January 18, 2021

The National Bank of Romania cut its key interest rate by 25 basis points to 1.25%. This reduction augments the full percentage point of cuts last year (50 bps in March and 25 bps each in May and August) and takes the rate level to its lowest point in the 21st century. A released statement […] Read Article

Deeper Analysis

December Sees Largest U.S. Versus Ezone Manufacturing Sector Advantage Since April

January 5, 2021

The announced existence of effective Covid vaccines lifted conditions faced by manufacturers in both the United States and Euroland in December. U.S. conditions according to the Institute of Supply Management improved by 3.2 index points to a 28-month high of 60.7. Euroland’s IHS-compiled manufacturing survey index rose 1.4 points to a 31-month high of 55.2, […] Read Article

New Overnight Developments Abroad - Daily Update

Chinese Data, MLK Day and First Central Bank Rate Change of 2021

January 18, 2021

Financial markets this Monday will lack U.S. leadership due to the observance of MLK Day. In the wake of aroused racial strains that culminated in the 1/6 domestic terrorism attack on the nation’s capitol, there is extra poignancy to this year’s observance and uneasiness that more violence may mar this day. The National Bank of […] More

New Overnight Developments Abroad - Daily Update

Market’s Initial Reaction to American Rescue Plan Not Favorable

January 15, 2021

U.S. stock futures point to a decline of at least 0.5% at the open. Stock markets closed Friday with losses of 2.0% in South Korea, 1.1% in India, 0.9% in Indonesia, 0.8% in New Zealand, 0.6% in Taiwan and Japan. Equities are currently down about 1% in the U.K., Germany, France and Spain. The 10-year […] More

New Overnight Developments Abroad - Daily Update

Tension on Several Fronts but Market Moves Muted Overnight

January 14, 2021

President Trump has been impeached by the House of Representatives for the second time in 13 months. The Senate trial will commence soon after he leaves office. New Covid cases and deaths remain highly elevated in many countries. The British daily death toll set a record yesterday. Bank of Japan Governor Kuroda said monetary stimulus […] More

New Overnight Developments Abroad - Daily Update

Revolting Developments in the United States but Dollar Narrowly Mixed

January 13, 2021

The United States experienced a new record high daily death count yesterday from Covid that exceeded 4.4k and was accompanied by almost 230k new reported cases of the illness. A drop of 10 years in the government’s recommended minimum age for getting a vaccine now and other sudden shifts in guidelines for administering the shot […] More

New Overnight Developments Abroad - Daily Update

Covid and U.S. Politics in the Forefront

January 12, 2021

The dollar ticked up 0.1% against the yen overnight and held steady on balance versus the euro, but has slipped moderately against other key currencies such as sterling (0.5%), the Mexican peso (0.7%), the Canadian and Australian dollars (0.3%), the Chinese yuan (also 0.3%), the kiwi (0.2%) and the Swiss franc (0.1%). U.S. equity futures […] More

New Overnight Developments Abroad - Daily Update

Equities Open Lower after Big Rise Last Week.. Dollar Recovers on Risk Aversion

January 11, 2021

The dollar climbed overnight by 1.1% against the Mexican peso, 0.7% relative to the Swiss franc, sterling, and Canadian, Australian and New Zealand dollars, 0.5% versus the euro, and 0.3% vis-a-vis the yen (to a 5-week high above 104.0). The trade-weighted dollar move was +0.5%. U.S. equities have fallen 0.6-0.8% in futures trading. Share prices […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: January 9-15, 2021

January 8, 2021

Central Banks: Monetary policies will be reviewed in South Korea, Poland, Peru, and Serbia. Tenreyro, Bailey, and Broadbent of the Bank of England will be speaking publicly. The Fed Beige Book of regional economic conditions will be published. Holiday: Japanese Coming of Age holiday on Monday. Scheduled U.S. Economic Data Releases: Consumer prices, producer prices, […] More

New Overnight Developments Abroad - Daily Update

Equities Up but Little Change in Dollar Prior to U.S. Jobs Report Release

January 8, 2021

The biggest overnight dollar changes against a major currency are 0.3% dips relative to sterling and the Mexican peso, but the U.S. currency also firmed against the loonie and euro. U.S. equity futures rallied further overnight. In the Pacific Rim, stocks rose 4.0% in South Korea, 2.4% in Japan, 3.0% in Singapore, 1.4% in India […] More

Foreign Exchange Insights and Next Week

Dollar in a Challenging Situation

January 7, 2021

The dollar depreciated much of the time last year, dropping from end-2019 to end-2020 by 9.0% against the Australian dollar, 8.2% versus the euro, 6.2% relative to the Chinese yuan and 5.0% against the Japanese yen. Those losses mask a well-bid first quarter that saw the U.S. currency attain its best trade-weighted value for the […] More

New Overnight Developments Abroad - Daily Update

Dollar and U.S. Equity Futures Up After Wednesday’s Coup in Washington Fails

January 7, 2021

The U.S. Congress shortly before 04:00 today confirmed that the ticket of Biden/Harris won the 2020 election and will take office at noon on January 20th. This ordinarily ceremonial act of power transition was anything but ordinary this time after a mob stormed the Capitol building yesterday to prevent the process. Taking his cue from […] More

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