August 14, 2020
Today’s been one of those Friday’s with a significant body of economic data releases both from both a quantitative and qualitative standpoint. Prior to the U.S. contingent of releases, the dollar overnight had dropped 0.4% against sterling and 0.3% relative to sterling but risen by 0.2% against the Canadian and Australian dollars and 0.1% vis-a-vis […] Read Article
August 14, 2020
Central Banks: Monetary policy reviews in the Philippines, China, Indonesia, Sri Lanka, Norway and Turkey. Minutes of recent reviews from the Reserve Bank of Australia, Federal Reserve, and European Central Bank will be published. Events and Holidays: The U.S. Democratic Party national convention will run from Monday to Thursday mostly on a virtual basis. Euroland […] Read Article
August 13, 2020
Over the past six months, policymakers at the Bank of Mexico have engineered six interest rate cuts totaling 275 basis points. The last five of these moves including today’s announcement were cuts of 50 basis points, and the overnight interbank interest rate now becomes 4.50%, which is a 3-1/2 year low. This latest easing, according […] Read Article
August 13, 2020
The Covid-19 pandemic presents enormous and similar challenges to most nations. 2020 is an especially critical year for the United States because it coincides with a presidential election that presents very different visions on the country’s future. We look at Europe, because the Democratic Party agenda would move the United States closer to the European […] Read Article
August 13, 2020
The dollar slid overnight by 0.6% against sterling, 0.4% versus the euro, 0.3% relative to the loonie, and 0.1% against the Swiss franc. Equities closed higher by 1.8% in Japan, 1.3% in Singapore and 0.7% in Taiwan, but trading in Europe has seen losses so far today of 1.1% in the U.K., 0.3% in Germany […] More
August 12, 2020
The dollar rose overnight by 0.6% against the kiwi, 0.4% versus the Japanese yen and 0.2% relative to sterling and the Australian dollar but also fell 0.3% against the euro, 0.4% versus the Swiss franc and 0.1% vis-a-vis the loonie. Share prices dropped 1.2% in New Zealand, 0.9% in Taiwan and 0.6% in China, advanced […] More
August 11, 2020
The dollar lost 0.4% against the euro, Swiss franc, Australian dollar and Mexican peso. The U.S. currency also fell 0.5% versus the Canadian dollar, 0.3% relative to sterling, 0.2% vis-a-vis the Chinese yuan, and 0.1% against the kiwi but ticked 0.1% higher versus the yen. This time, dollar depreciation wasn’t correlated with a strengthening price […] More
August 10, 2020
In this age of uncertainty, one of the most widely believed truths to emerge in 2020 is that future economic performance hinges on the evolution of the pandemic. Countries that contain the virus will be best positioned for sustained economic recovery, and their currencies ought to reflect that advantage. By just about every metric, the […] More
August 10, 2020
Net dollar changes since the pre-weekend close have been insignificant against other major currencies. Markets are closed today for holiday in Japan and Singapore. Share prices are mostly firmer. So too are the prices of WTI oil (1.5%) and gold (0.7%). But ten-year sovereign debt yields are down two basis points in Germany and the […] More
August 7, 2020
Central Banks: Monetary policies to be reviewed in New Zealand, Mexico, Serbia, and Peru. Holidays and Special Events: Mountain Day in Japan on Sunday, and a National Holiday in Singapore on Monday. Sometime during the week, U.S. Democratic Party nominee will reveal his preference for VP running mate. Scheduled U.S. Economic Statistical Releases: Quarterly productivity […] More
August 7, 2020
U.S. President Trump has banned all transactions with WeChat and TicToc. Although today was the planned deadline for a U.S. fiscal stimulus plan, the political parties remain miles apart, and a deal looks doubtful. Globally reported coronavirus cases jumped over 286k in the past 24 hours, and the U.S. death count rose almost 1200 to […] More
August 6, 2020
The National Bank of Romania enacted its third policy interest rate reduction of 2020. Following up on cuts of 50 basis points in March and 25 bps, the rate was reduced by another 25 basis points to 1.50%. In justifying this step, a released statement states that “given the transmission lags of the lower policy […] More
August 6, 2020
The Brazilian Selic interest rate was sliced another 25 basis points as expected to 2.0%. This was its fifth reduction of 2020, following cuts of 25 basis points in February, 50 bps in March, and 75 basis points each in May and June. The rate has been lowered progressively since the final quarter of 2016 […] More
August 6, 2020
Congressional talks on an additional fiscal stimulus reportedly remain far apart. The hope has been to secure agreement by tomorrow. Global Covid-19 cases just rose above the 19 million mark, and the U.S. total is closing in fast upon 5 million confirmed infections. Although more than 200k less than forecast, new U.S. jobless insurance claims […] More
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