New Overnight Developments Abroad - Daily Update

Dollar Up Marginally, Stock Markets Mixed, and Americans Observe Thanksgiving Day

November 26, 2020

The U.S. Thanksgiving holiday is depriving financial markets of some degree of leadership. The dollar overnight drifted up 0.1-0.2% against the euro, loonie, yen, kiwi, Swiss franc and Australian dollar. The U.S. currency rose a bit more against the peso (0.4%) and sterling (0.3%). Stock markets in Asia closed up 1.4% in Indonesia, 1.0% in […] Read Article

Foreign Exchange Insights and Next Week

Next Week’s Menu: November 21 – 27, 2020

November 20, 2020

Central Banks: Monetary policy meetings are scheduled in Sweden, South Korea, Colombia, and Sri Lanka. Minutes from the last policy reviews by the FOMC and the European Central Bank Governing Council get released. Bank of Japan Governor Kuroda, Deputy Governor Debelle of the Reserve Bank of Australia, and Bank of England Monetary Policy Committee members […] Read Article

Central Bank Watch

Swedish Riksbank

November 26, 2020

The Swedish Riksbank’s repo rate has been at 0% or negative since February 2015. It’s last change, a 25-basis point hike to zero percent, was done in December 2019. A statement after the just-completed latest policy review by the central bank’s Executive Board expands the size of the asset purchase program from SEK 500 billion […] Read Article

Deeper Analysis

White House Transitions and Financial Market Volatility

November 13, 2020

This update examines how financial markets performed between America’s Election Day in early November and the ensuing presidential inauguration on the following January 20th. It considers only those times when the party affiliation of the president changed, which happened five times between 1980 and 2016. More times than not, these periods experienced market volatility of […] Read Article

Central Bank Watch

ECB Account Identifies Near-Term Outlook Deterioration

November 26, 2020

Minutes from the October 28-29 meeting of the European Central Bank‘s Governing Council warn of a “clear deterioration in the near-term outlook” following the strong third-quarter rebound. Known as the ECB Account, the document cites euro appreciation as well as week demand and lower wage pressures as factors behind very subdued inflation. The second Covid […] More

New Overnight Developments Abroad - Daily Update

America Releasing a Lot of Data and Bracing for Holiday Impact on Pandemic

November 25, 2020

Trading was comparatively quiet overnight. The dollar recorded gains of 0.4% against the New Zealand and Australian currencies and also rose 0.2% relative to the loonie and sterling. The euro is down 0.1% on net but not before touching a 12-week high of $1.1929. The dollar is flat against the yen and had slipped 0.2% […] More

New Overnight Developments Abroad - Daily Update

Investor Mood Lifted by Vaccine Hopes and U.S. Transition Go-Ahead

November 24, 2020

The U.S. dollar is grinding lower but slowly and in an orderly fashion. The currency dropped 0.8% and 0.7%, respectively, overnight against the New Zealand and Australian dollars overnight but by only 0.2% relative to the euro and loonie, and it held steady versus the yen and sterling. Favorable vaccine news has created a sense […] More

New Overnight Developments Abroad - Daily Update

Share Prices Up and Dollar Down on Favorable Covid Vaccine News

November 23, 2020

A third Covid-19 vaccine has been found to be quite effective in trials, and Regeneron’s antibody therapeutic treatment has received authorization for emergency use against the disease. Global cases are fast approaching the six million mark, 21% of which in the United States. After spiking to nearly 200k last Friday, new U.S. cases fell Saturday […] More

New Overnight Developments Abroad - Daily Update

Trump Fans Political Chaos but Dollar Slippage Stays Orderly

November 20, 2020

The Trump campaign is continuing to try to discredit election results in several states. If it can persuade some key states not to certify Biden’s win, the President-Elect could fall short of the needed 270 electoral votes, throwing the election decision back to state legislatures, the House of Representatives, and perhaps the Supreme Court. The […] More

Central Bank Watch

South African Reserve Bank

November 19, 2020

Although the South African Reserve Bank’s repo rate was left unchanged at 3.5%, the vote not to ease of 3-2 was razor-thin. Each dissenter preferred a 25-basis point cut to add to earlier easing moves this year of 25 basis points in January, 100 bps each in March and April, 50 bps in May and […] More

Central Bank Watch

Rate Cut at Bangko Sentral ng Pilipinas

November 19, 2020

The Filipino policy interest rate was reduced by 25 basis points to a record low of 2.0%. This was the fifth cut of 2020, followings ones of 25 bps in February and a trio of 50-bp moves in March, April and June. The Philippines has been slammed not only by the pandemic but also a […] More

Central Bank Watch

Bank Indonesia Cuts Interest Rate

November 19, 2020

A 25-basis point cut in Bank Indonesia’s seven-day reverse repo rate to 3.75% had not been anticipated today. The move follows four earlier 25-basis point reductions this year between February and July. According to an accompanying statement, the latest easing is meant to maintain liquid money markets and promote economic recovery in the face of […] More

Central Bank Watch

Central Bank of Turkey Tightens Sharply

November 19, 2020

The Central Bank of Turkey┬áraised the one-week repo rate by 475 basis points to 15.0% in an action to counter inflation caused by the depreciation of the lira. Among emerging market economies, Turkey’s currency this year has been the weakest. Turkish monetary officials, like their counterparts around the world, had lowered their interest rate progressively […] More

New Overnight Developments Abroad - Daily Update

Correlation Between Covid Cases and the Dollar

November 19, 2020

The dollar has frequently benefited from intensifying Covid infections and the rise in general uncertainty that accompanies such. Today has been one of those days. New coronavirus cases in the United States topped 170k yesterday, but the increase over the last 24 hours as of this writing is in fact just shy of 180,000. And […] More

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