New Overnight Developments Abroad - Daily Update

Mostly Firmer Dollar Tone

October 17, 2017

The dollar recorded overnight gains of 0.5% against the yuan, 0.4% versus sterling, 0.3% relative to the euro, 0.2% vis-a-vis the loonie, swissie, and peso, and 0.1% versus the yen and Australian dollar. The dollar edged 0.1% lower against the kiwi, in contrast. Inflation reports released today tended to be above expectations. Consumer prices in […] Read Article

Foreign Exchange Insights and Next Week

Dollar Determinants to Watch

October 16, 2017

Dollar/yen has been a more stable relationship in 2017 than the EUR/USD pair. Monthly averages of the yen from February through September were confined within a three percentage point band with a dollar high of 113.04 in March and a low of 109.77 in August. The mean so far this month likes within that range […] Read Article

Central Bank Watch

Central Reserve Bank of Peru’s Policy Interest Rate Left Steady at 3.5%

October 12, 2017

At Board meetings in May, July and September, three of the four 25-basis point central bank interest rate hikes implemented between September 2015 and February 2016 were reversed. A reversal of supply shocks enabled inflation to drop back into the 1-3% target range in September after spiking to 3.2% in August, but officials had anticipated […] Read Article

Deeper Analysis

Faster Non-Manufacturing Growth in the U.S. and Euroland

October 4, 2017

The Institute of Supply Management reported a big 4.5-point jump during September in the U.S. non-manufacturing purchasing managers index. At 59.8, such signaled the quickest expansion of activity since August 2005. Sub-components for new business, prices, and production increased by 8.4, 5.9 and 3.8 points, respectively. IHS Markit Economics calculated a 1.1-point increase in Euroland’s […] Read Article

New Overnight Developments Abroad - Daily Update

Commodity Prices Strengthen

October 16, 2017

West Texas Intermediate crude oil advanced 1.3% to $52.10 per barrel, and copper strengthened nearly 3%. Comex gold is 0.2% higher. Comments over the weekend at the IMF meetings in Washington from the likes of Yellen, Zhou, and Constancio stressed that growth is doing well and expressed puzzlement that wage inflation continues to lag. BOJ […] More

Foreign Exchange Insights and Next Week

Next Week

October 13, 2017

Central Banks: Monetary policy reviews are scheduled next week in Israel, South Korea, Indonesia and Chile. Minutes from prior central bank meetings will be published by the Reserve Banks of Australia and India, and the Federal Reserve’s Beige Book of regional economic conditions gets released. Yellen, Kaplan and Dudley of the Fed speak publicly; so […] More

New Overnight Developments Abroad - Daily Update

More Evidence of Subdued Inflation

October 13, 2017

The dollar fell overnight by 0.7% against the Australian dollar, 0.6% relative to the kiwi, 0.4% versus the yen and sterling, 0.3% vis-a-vis the Swiss franc, 0.2% against the euro and 0.1% versus the yuan. The peso and loonie remained unchanged even as President Trump suggests that it may not be possible to fix the […] More

New Overnight Developments Abroad - Daily Update

Sterling Down on Stalemated Brexit Talks

October 12, 2017

A fifth round of Brexit talks between the U.K. and EU failed to make progress settling the matter of Britain’s debt to the common currency, and without such the EU won’t discuss Britain’s future relationship with Continental Europe. Sterling fell 0.6% against the euro and dollar overnight. Sentiment toward the euro was buoyed by the […] More

New Overnight Developments Abroad - Daily Update

Quiet Start to Wednesday

October 11, 2017

The dollar is marginally softer, with overnight dips of 0.3% against the peso, 0.2% versus the yen and Aussie dollar and 0.1% vis-a-vis the euro and Swiss franc. The dollar also rose 0.4% against the yuan and 0.1% relative to sterling but is flat against the loonie and kiwi. Tensions over Spain’s political situation eased […] More

New Overnight Developments Abroad - Daily Update

Civilization Under Strain

October 10, 2017

Catalan is the latest place to see tribal forces running amuck. The separatist leader Carles Puigdemont appears poised to declare complete or perhaps qualified independence from Spain, setting the stage for more violence with Spanish police. The IBEX has declined 0.9%. The dollar is on its heels following holidays Monday in The U.S., Japan, Canada […] More

Central Bank Watch

National Bank of Serbia

October 9, 2017

In cutting Serbia’s monetary policy interest rate to 3.5% from 4.0%, the Executive Board of the National Bank of Serbia claimed to be “guided by the medium-term inflation projection and movements in key inflation factors.” The medium-term inflation target is 3.0%, give or take 1.5 percentage points, and the most recent on-year changes of total […] More

New Overnight Developments Abroad - Daily Update

Market Spotlight on Turkey and Spain

October 9, 2017

On a day when holiday closures in the United States (Columbus Day), Japan (Health Sports Day), Canada (Thanksgiving), and South Korea (Hanguil Day) ordinarily might be expected to sap the market of leadership and thus depress volatility, there have been big movements affecting Turkey and Spain. A diplomatic dispute between Turkey and the United States […] More

Foreign Exchange Insights and Next Week

Next Week

October 6, 2017

Central Banks: Monetary policy meetings are scheduled in Peru and Serbia. FOMC minutes will be published, and Kashkari, Evans, Brainard, Powell and Kaplan are some of the FOMC officials speaking publicly in the week. So will Draghi and Praet of the European Central Bank. Holidays and Special Event: Markets are closed Monday for Columbus Day […] More

New Overnight Developments Abroad - Daily Update

Waiting for U.S. and Canadian Labor Market Statistical Releases

October 6, 2017

Investors await the U.S. Labor Department jobs report for September at 08:30 EDT, knowing that it will be badly distorted by the hurricanes that hit Texas and Florida. Canadian labor market figures are due also. Concern over Spain’s uncertain political tension continues to fester, tempering enthusiasm that otherwise would arise from upbeat data like today’s […] More

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