Archive for September 2015

New Overnight Developments Abroad - Daily Update

Dollar and European Equities Firm after Yellen Clarification

September 25, 2015

Fed Chair Yellen in a speech at the University of Massachusetts repeated that an interest rate hike by yearend is likely and indicated that she personally favored starting gradual rate normalization by then.  Investors seem pleased with that clarification and reduction of policy uncertainty. Japanese core consumer prices fell 0.1% on year in August, returning […] More

New Overnight Developments Abroad - Daily Update

Dollar and European Equities Firm after Yellen Clarification

September 25, 2015

Fed Chair Yellen in a speech at the University of Massachusetts repeated that an interest rate hike by yearend is likely and indicated that she personally favored starting gradual rate normalization by then.  Investors seem pleased with that clarification and reduction of policy uncertainty. Japanese core consumer prices fell 0.1% on year in August, returning […] More

Central Bank Watch

Czech Monetary Authorities Plan No Tightening of Ultra-Accommodative States Before 2H16

September 24, 2015

A statement after the latest policy review by officials at the Czech National Bank speaks of better-than-anticipated Czech domestic growth but doesn’t back away from forward guidance of a continuing very easy stance persisting into the second half of next year.  The policy combines a “technical” interest rate, which is really 0.05% with a koruna […] More

Central Bank Watch

Filipino Central Bank Interest Rates Left Unchanged

September 24, 2015

The key rates have been 6.0% for the overnight lending rate and 4.0% for overnight borrowing since increases of 25 basis points each in July and September of last year.  Policy was not changed in 2013, but it was loosened four times in 2012.  A statement from officials at Bangko Sentral ng Pilipinas predicts that […] More

Central Bank Watch

Policy Easing at the Central Bank of the Republic of China

September 24, 2015

From Taipei today came word of the first central bank interest rate change there since June 2011, when the last of five straight 12.5-basis point hikes was engineered.  Like those moves, today’s action was decided at a regular quarterly monetary policy review.  Taiwan’s discount rate now falls back to 1.75% from 1.875%, and a statement […] More

Central Bank Watch

Central Bank of Norway

September 24, 2015

Norway’s key monetary policy rate has been cut by 25 basis points at a second straight meeting of the Executive central bank board, and the released statement warned of further possible reductions in the coming year.  The economy of this energy producer has been hurt by sharply falling oil prices. The statement provides two reasons […] More

New Overnight Developments Abroad - Daily Update

Continuing Selling Pressure on Brazilian Currency

September 24, 2015

Having punched through the four per dollar threshold for the first time just two days ago, the battered Brazilian real sank to as low as 4.1795 earlier today.  This 36% year-to-date decline on top of a 12+% slide in 2014 has intensified since S&P downgraded Brazil’s credit rating to junk status earlier this month. The […] More

Central Bank Watch

South African Reserve Bank

September 23, 2015

The Monetary Policy Committee voted unanimously to leave the 6.0% repo rate unchanged but acknowledged that inflation risks are skewed to the upside because of past rand depreciation and the potential for the exchange rate to slide further.  “The rand was negatively impacted by developments in China, continued speculation regarding the timing of US policy […] More

New Overnight Developments Abroad - Daily Update

First Look at September Purchasing Manager Surveys

September 23, 2015

The dollar lost 0.3% against the euro overnight but gained 0.5% versus the Australian dollar, 0.4% vis-a-vis sterling and 0.1% relative to the yen, Swissie and yuan.  The loonie edged 0.1% higher. In the wake of Tuesday’s U.S. stock sell-off and following a disappointing Chinese manufacturing PMI, the Shanghai Composite index dropped 2.2%, and equities […] More

Larry's Blog

Age of the Next U.S. President: Some Interesting Facts

September 22, 2015

Barack Obama is the 44th U.S. president but only the 43rd different person to hold that office since Grover Cleveland served two non-consecutive terms. The average age of the 43 presidents at the time of their initial inauguration is 55.  25 were in their 50s.  10 were in their 60s but just 2 as old […] More

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