New Overnight Developments Abroad - Daily Update

Post-Brexit Market Moves Reversed Slightly Ahead of EU Council Meeting

June 28, 2016

The dollar settled back 0.9% against sterling and the kiwi, 0.8% versus the Australian currency, 0.7% relative to the loonie, and 0.6% vis-a-vis the euro and yen.  The yuan and Swiss are mostly unchanged.  Emerging market currencies did better today as well. Ten-year sovereign debt yields rebounded six basis points in the U.K., 3 basis […] Read Article

Foreign Exchange Insights and Next Week

Bad Time for a Market Shock

June 27, 2016

The British referendum result delivered bad news and not merely because it defied street expectations or the widely held view of investors, economists, world leaders, and central bankers that the British, European and world economies would be poorly served by a verdict to take Britain out of the EU.  No time is good for bad news, but […] Read Article

Central Bank Watch

Bank of Israel’s Monetary Policy to “Remain Accommodative for a Considerable Time”

June 27, 2016

Israel’s central bank rate has been at 0.1% since a 15-basis point cut in February 2015, which was preceded by 75 bps worth of easing in each of 2011, 2012, 2013, and 2014.  Nonetheless, current inflation of 0.5% is not expected to rise into target until around the middle of next year.  Projected Israeli growth […] Read Article

Deeper Analysis

Referendum Eve into Morning After

June 23, 2016

00:34 GMT–  With 13 of 382 British localities reporting, the Leaves lead the Remains by a 7 percentage point margin of 53.6% to 46.4%.  Too be sure, these are early times, but nervous markets have backed off Thursday’s high confidence.  Supposing the Leaves prevail at the end of the day, a few conclusions one might […] Read Article

New Overnight Developments Abroad - Daily Update

Sterling and European Stocks Extend Slide

June 27, 2016

European markets staggered further from all the political and economic uncertainties unleashed by the Brexit referendum result last week.  Britain has a political vacuum.  PM Cameron speaks to parliament today.  He’s resigned by wants to stay until a Tory successor is chosen at the Conservative annual conference in October.  Markets do not seem to be […] More

Foreign Exchange Insights and Next Week

Next Week

June 24, 2016

Central Bank Activity:  Interest rate policy meetings in Mexico, Taiwan, Romania, the Czech Republic and Israel. The Bank of England’s Financial Policy Committee meets Tuesday.  Minutes of the last European Central Bank will be published, and so will the Bank of Japan’s quarterly corporate Tankan survey.  Governor Zhou of the People’s Bank of China, and […] More

New Overnight Developments Abroad - Daily Update

British Referendum Wreaks Havoc in Global Markets

June 24, 2016

British voters chose to leave the European Union by a margin of 51.9% to 48.1.  Extensive coverage provided in Deeper Analysis. British Prime Minister Cameron, who campaigned to remain in the EU, resigned and will step down in the fall. The pound swung adversely against the dollar by as much as 11.9%, most ever, dropping […] More

Central Bank Watch

National Bank of Ukraine

June 23, 2016

Ukraine’s central bank interest rate has been reduced by a further 150 basis points, bringing the cumulative decline to 13.5 percentage points from 30% prior to mid-August 2015.  According to a statement, an appreciating hryvnia moderate domestic demand have played an important role in cutting expected inflation and actual inflation to 7.5%, which is within […] More

Central Bank Watch

Norges Bank

June 23, 2016

Norway’s benchmark central bank interest rate was held at 0.50%, but a statement released after the latest Executive Board meeting said a further cut remains possible.  The rate was cut by 25 basis points in March, as well as June and September of last year.  There were also two such reductions in 2014 and a […] More

Central Bank Watch

Bangko Sentral ng Pilipinas

June 23, 2016

Interest rate changed had been unveiled June 3, so it’s unsurprising that Filipino central bank rates were left unchanged at today’s scheduled policy review.  The repo rate stays at 3.0%; a cut three weeks ago from 4% was the first change since September 2014.  Overnight lending and deposit rates remain at 3.5% and 2.5%.  A […] More

Central Bank Watch

Central Bank of Colombia

June 23, 2016

Colombia’s central bank interest rate was again raised on June 22 after the latest monthly meeting.  The increase was 25 basis points to 7.5%, which is three percentage points above the 4.5% level prior to September 2015.  A released statement observes that inflation of 8.2% in May was still far above the 2-4% target for 2017 but […] More

New Overnight Developments Abroad - Daily Update

Big Market Moves on Brexit Day

June 23, 2016

Polls have opened in the U.K. where voters are deciding whether to remain in the EU or leave.  Polls close at 10 PM local time.  Markets are positioned for a “remain” outcome. The dollar rose 1.3% overnight against the yen but is down 1.2% against sterling, 1.0% relative to the loonie, 0.9% versus the New […] More

Central Bank Watch

Bank of Thailand Policy Remains on Hold

June 22, 2016

Thailand’s central bank interest rate has been at 1.50% since the last of eight 25-basis point cuts between November 2011 and April 2015.  After unanimously voting to keep that rate level at this month’s meeting, the Monetary Policy Committee released a statement advocating no further cut so as to preserve ” policy space given that […] More

New Overnight Developments Abroad - Daily Update

Modestly Softer Dollar

June 22, 2016

Dollar slippage so far today amounts to 0.6% against the Aussie dollar, 0.5% versus the kiwi, 0.4% relative to sterling and the euro, 0.3% vis-a-vis the yen and loonie and 0.2% against the yuan. Janet Yellen will be reprising her semi-annual testimony on monetary policy and the U.S. economy, this time before the House Financial […] More

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