Foreign Exchange Insights and Next Week
Dollar on a Roll in Spite of Obama
November 5, 2014
Rounding to the nearest percent, the dollar so far this year has appreciated about 10% against the euro, 9% against the yen, 8% versus the Swiss franc, 7% relative to the Canadian dollar, 6% vis-a-vis the kiwi, 4% against the Aussie dollar and sterling and even 1% versus the Chinese yuan. Given the widening perceived […] More
Deeper Analysis
Second Straight Decline in U.S. Non-manufacturing PMI Reading
November 5, 2014
Euroland’s service-sector PMI edged just 0.1 point lower in October. In contrast, the U.S. non-manufacturing PMI fell 1.5 points and recorded a decline of 2.5 points between August and October. The spread between the U.S. and Ezone measures contracted to 4.8 points from 6.2 points. However, the differential between their manufacturing PMIs had widened by […] More
Central Bank Watch
Bank of Thailand Flags Risk of a Possible Additional Interest Rate Cut in the Future
November 5, 2014
The benchmark interest rate was left at 2.0%, its level since a 25-basis point reduction in March 2014. That cut was the sixth such drop since November 2011, and a released statement revealed a dissenting vote in favor of easing policy now. The committee expresses concerns regarding greater downside risks from global growth and the […] More
Central Bank Watch
Bank of Iceland Cuts Interest Rate
November 5, 2014
Iceland’s one-week central bank lending rate was changed today for the first time in two years. A cut of 25 basis points to 5.75% reversed a similar-sized increase in November 2012 that culminated 175 basis points of tightening begun in August 2011. The explanation in a released statement focused on lower inflation and indications of […] More
New Overnight Developments Abroad - Daily Update
Volatile Markets in Aftermath of Republican Big Win
November 5, 2014
Republicans retook control of the Senate and will hold at least 52 of the 100 seats. Republicans defended the House of Representatives where they will hold at least 56% of the seats. Republicans also will control 5/8ths of the state governorships. In more cases than not where Republicans won, the margin of victory was greater […] More
