New Overnight Developments Abroad - Daily Update

Global Equities Slide Amid Policy Changes in Turkey, China, and Indonesia

August 15, 2018

Turkey raised tariffs on a slew of U.S. imported goods, including the doubling of those on cars and alcoholic beverages. In a move to boost the beleaguered lira by impeding short selling of the currency, Turkish authorities also imposed curbs on currency swaps and similar vehicles. The U.S. dollar is down 3.3% against the lira […] Read Article

Foreign Exchange Insights and Next Week

Next Week

August 10, 2018

Central Banks: Monetary policy reviews in Norway and Indonesia. Reserve Bank of Australia Governor Lowe delivers semi-annual parliamentary testimony. Holidays: Assumption Day observed Wednesday in a few European countries. Indonesian Independence Day on Friday. Scheduled U.S. Data Releases: Quarterly productivity and unit labor costs. Monthly retail sales, industrial production, capacity usage, NAHB housing index, Empire […] Read Article

Central Bank Watch

Indonesia’s Fourth Central Bank Interest Rate Hike Since Mid-May

August 15, 2018

In the face of a wider current account deficit in Indonesia, intensifying global trade tensions, and Turkey’s crisis, which makes many emerging economies more vulnerable, Bank Indonesia’s key 7-day reverse repo rate was lifted by another 25 basis points to 5.50%. The deposit facility and lending facility rates also went up 25 basis points to […] Read Article

Deeper Analysis

Narrower U.S. Non-Manufacturing Advantage Last Month Versus Euro Area

August 3, 2018

The July spread between the ISM non-manufacturing U.S. purchasing managers index and IHS’s service-sector PMIĀ for the euro area was 2.4 points smaller than June’s differential. In combination with a 2.3-point contraction of their manufacturing PMI spread reported earlier this week, the sum of the two first differences was slightly more than halved to 4.5 points, […] Read Article

New Overnight Developments Abroad - Daily Update

A Rebound in Many Emerging Market Currencies

August 14, 2018

The dollar has settled back 5.3% against the Turkish lira, 1.6% relative to the South African rand, 1.5% versus the Russian ruble, 0.9% vis-a-vis the Mexican peso, 0.5% against the Brazilian real and 0.25% versus the Indian rupee after touching a record low of INR 70.09 earlier in the day. However, today’sĀ respite in the lira-led […] More

New Overnight Developments Abroad - Daily Update

Deepening Turkish Crisis Kindles Contagion Fears

August 13, 2018

The dollar has appreciated another 8.7% against the Turkish lira and is hovering around 7/USD. The lira touched a record low of 7.2 per dollar earlier. Turkish share prices have fallen 4.7%, and the 10-year Turkish sovereign debt yields climbed 51 basis points to 21.18%. Turkey’s central bank pumped fresh liquidity into money market by […] More

New Overnight Developments Abroad - Daily Update

More Volatile Global Markets as Concern Mounts about Turkey

August 10, 2018

Turkey commands the spotlight of global financial markets this Friday. Talks broke down between the U.S. and Turkey over the latter’s continuing detention of an American evangelical pastor, which has prompted economic sanctions by the United States on an economy already gripped with upward spiraling inflation and a central bank interest rate near 18%. The […] More

Central Bank Watch

Filipino Monetary Response Escalated Amid Rising Inflation

August 9, 2018

A May central bank rate hike in May — the first hike of the overnight reverse repo rate since 2014 — was followed one month later by a second tightening. Both increases were 25 basis points in size, which these days is the most frequent incremental change favored by central bankers. But after meeting this […] More

New Overnight Developments Abroad - Daily Update

Declines in Kiwi, Ruble and Turkish Lira

August 9, 2018

The dollar advanced overnight by 1.6% against the New Zealand dollar, 0.9% versus the Russian ruble, and some 2.5% vis-a-vis the Turkish lira. Not only did the latest review of New Zealand monetary policy end with leaving the Official Cash Rate at 1.75%, half its level prior to the June 2015 first of 7 reductions, […] More

New Overnight Developments Abroad - Daily Update

Sterling Continues to Stumble on Hard Brexit Fears

August 8, 2018

Sterling hit new 2018 lows of EUR 0.9019 and $1.2859. The dollar is 0.6% stronger against the pound than its Tuesday closing level. The dollar is also up 0.3% versus the loonie, down 0.3% relative to the yen, and barely changed against the euro, Swiss franc, Aussie dollar or kiwi. Asian stocks were mixed Wednesday, […] More

New Overnight Developments Abroad - Daily Update

Softer Dollar but Higher Share Prices

August 7, 2018

The dollar softened overnight by 0.6% against the Aussie dollar, 0.4% relative to the yuan and euro, 0.3% vis-a-vis the peso, loonie and kiwi, 0.2% versus the yen and Swiss franc, and 0.1% against sterling. Share prices climbed 2.7% in China, 2.0% in Hong Kong, 0.7% in Japan, and 0.6% in South Korea. Equities in […] More

Foreign Exchange Insights and Next Week

Spotlight on Sterling

August 6, 2018

As a former hegemonic reserve currency with enormous residual offshore holdings, sterling is intrinsically susceptible to being shoved around disproportionately whenever favorable or unfavorable fundamental economic shifts arise. From $2.80 prior to the November 1967 devaluation, the pound slid to a low of $1.55 less than a decade later in October 1976 and touched an […] More

New Overnight Developments Abroad - Daily Update

Sterling Slide Extended

August 6, 2018

The pound ended last week on a weak note after Bank of England Governor Carney flagged “an uncomfortably high” risk that Britain leaves the EU without any negotiated deal. That message was reinforced over the weekend by Trade Minister Fox’s perception of 60-40 odds in favor of no deal, and sterling slipped a bit below […] More

Foreign Exchange Insights and Next Week

Next Week

August 3, 2018

Central Banks: Central banks hold monetary policy reviews in Australia, New Zealand, Thailand, The Philippines, Peru, Romania and Serbia. Australia’s quarterly Monetary Policy Statement and minutes from the Bank of Japan Board meeting to be published. Barkin of the Fed speaks publicly, as will Reserve Bank of Australia Governor Lowe. Holidays: August Civic holiday in […] More

css.php