New Overnight Developments Abroad - Daily Update

Data Factor Heats Up

April 23, 2014

April Flash PMI results are out for the euro area, China and United States.  Other market-moving data released today are Australian consumer prices, U.S. new home sales, Ezone deficit- and debt-to-GDP ratios, and Britain’s industrial trends survey, BOE minutes, and fiscal 2013-14 totals. The U.S. dollar has jumped 1.0% against its Australian counterpart but shows […] Read Article

Foreign Exchange Insights and Next Week

Next Week

April 19, 2014

Another holiday-interrupted week lies ahead.  Australia and many European centers such as Britain, Germany, France and Italy will remain shut on Monday for Easter Monday.  Then next Friday, Australian and New Zealand markets will be closed for Ansac Day. Central bank meetings are scheduled in Thailand, New Zealand, Turkey, Russia, Colombia and Mexico.  The Bank […] Read Article

Central Bank Watch

New Zealand’s Second Central Bank Interest Rate Hike

April 23, 2014

  Officials at the Reserve Bank of New Zealand as expected engineered a follow-up 25-basis point increase of their Official Cash Rate to 3.0% and released an extremely close facsimile to the March 13th statement that launched this tightening cycle.  The OCR had been at 2.5%, a record low,  for three years between March 2011 and […] Read Article

Deeper Analysis

G20 Statement from Washington D.C.

April 12, 2014

G20 finance ministers and central bank governors meeting on the periphery of the World Bank/IMF semi-annual meetings released a statement that mostly lays out work to be done before the Brisbane Summit in September.  The statement says nothing about currency market policy coordination.  Strengthening growth is predicted, but vigilance must continue “in the face of […] Read Article

Central Bank Watch

Bank of Thailand Elects Not to Cut Interest Rate Again

April 23, 2014

The monetary policy committee had reduced its policy interest rate five times – each by 25 basis points – since November 2012 and most recently this year on March 12. By a vote of 6-1 with a sole dissent favoring a sixth such reduction now, the MPC this time chose to leave the rate at […] More

Central Bank Watch

Central Bank of Sri Lanka

April 22, 2014

The last central bank rate change was a 50-basis point cut of the reverse repo rate to 8.0%, which cut its premium over the repo rate to 150 basis points from 200 bps.  The April Policy Review left key rates unchanged as expected, observed total and core CPI inflation rates of 4.2% and 3.4%.  As […] More

New Overnight Developments Abroad - Daily Update

Stronger Kiwi and Aussie Dollar

April 22, 2014

The U.S. dollar’s main overnight moves were declines of 0.5% against the New Zealand dollar and 0.4% versus the Aussie dollar, the latter in spite of another protesting comment from Australia’s Treasurer about the currency’s excessive strength and the central bank’s disinclination to ease further. Otherwise, the dollar is unchanged against the euro and Swissie, […] More

New Overnight Developments Abroad - Daily Update

Easter Monday

April 21, 2014

New Zealand, Australia and much of Europe are closed for Easter Monday. The dollar is unchanged against the loonie and sterling, up 0.2% versus the yen and Swissie, up 0.1% relative to the yuan, kiwi and euro and down 0.1% against the Australian dollar. The ten-year U.S. Treasury and Japanese JGB yields are at 2.71%, […] More

New Overnight Developments Abroad - Daily Update

Most Markets Closed for Good Friday Observances

April 18, 2014

The dollar is unchanged against the euro, Swissie, sterling, and yen.  The U.S. currency is down 0.2% vis-a-vis the kiwi and 0.1% relative to the Australian dollar and yuan.  The loonie has edged 0.1% lower. Japan’s Nikkei rose 0.7%. The 12-month rise in Chinese property prices, 7.7% in March after 8.7% in February, was at […] More

Central Bank Watch

National Bank of Serbia Monetary Policy Not Changed

April 17, 2014

As also decided at prior meetings on January 16, February 13, and March 6, the Executive Board left its one-week repo rate unchanged at 9.5%, striking a balance between protecting financial stability and securing growth with price stability.  The key central bank interest rate had been cut 150 basis points in the final quarter of […] More

New Overnight Developments Abroad - Daily Update

Spoken Words

April 17, 2014

Bank of Japan Governor Kuroda reiterated his upbeat view that recovery will resume soon after the initial setback this quarter caused by a consumption tax.  While expressing satisfaction with current policy settings, he also indicated a readiness to augment stimulus if such becomes necessary.  The Bank of Japan released results of its quarterly branch managers […] More

Foreign Exchange Insights and Next Week

Emerging Market Currencies Is Where the Action Lies

April 16, 2014

The unremarkable changes in dollar values against other advanced economy currencies has been a frequent theme lately of the weekly currency market essay.  Regrettably, that stability has continued in April, where month-to-date dollar declines amount so far to 1.2% against the Aussie dollar, 1.0% versus the yen, 0.8% relative to sterling, 0.3% vis-a-vis the loonie […] More

Central Bank Watch

Bank of Canada Keeps 1.0% Overnight Interest Rate Target, Calling Policy Stance Appropriate

April 16, 2014

The third scheduled interest rate announcement of 2014 coincided with the release of a new Monetary Policy Report.  Estimates for 2016 have been added to the Bank of Canada’s macroeconomic forecasts.  While core inflation is seen hovering at 1.2% in the first half of this year and not returning to the 2.0% target until the […] More

New Overnight Developments Abroad - Daily Update

Lots of Data and a Better Tone in Equities

April 16, 2014

Japan’s Nikkei catapulted 3.0% higher, and stocks so far in Europe are up by 2.0% in Italy, 1.1% in Spain, 0.9% in France, 0.8% in Germany, 0.5% in Switzerland and 0.3% in Britain.  In other selected markets around the Pacific Rim, stocks gained 0.6% in Australia, 0.3% in New Zealand, 0.2% in Singapore and 0.1% […] More

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