New Overnight Developments Abroad - Daily Update
Firmer Dollar and Stocks
October 16, 2015
The dollar rose overnight by 0.9% against the kiwi, 0.7% versus the Australian dollar, 0.4% relative to the loonie and sterling, 0.3% relative to the euro, 0.2% vis-a-vis the Swiss franc and 0.1% against the yen and yuan. Share prices climbed 1.6% in China, 0.8% in India, 0.7% in Japan and Australia, 0.9% in New […] More
Central Bank Watch
Bank Indonesia: Policy Unchanged as Expected
October 15, 2015
The rupiah’s vulnerability continues to impede the central bank’s ability to cut the 7.5% BI interest rate. From a peak of 7.75% after 200 basis points of increase between June and November of 2014, there has been just one cut in February of this year. Rupiah depreciation has caused inflation to elevate, with a 6.83% […] More
Central Bank Watch
Bank of Korea
October 15, 2015
South Korean monetary officials, as after monthly policy meetings in July, August and September, kept the seven-day repo rate at 1.5%. It’s already at a record low after 25-basis point reductions in June and April of this year as well as April and October of 2014. A statement on the bank’s website projects a softer-than-desired […] More
Central Bank Watch
Singapore Monetary Stance Eased Slightly
October 15, 2015
From a tightening in April 2012 through the end of 2014, there had been no change in the policy of the Monetary Authority of Singapore. Singaporean interest rate policy is subordinated to an exchange rate objective, defined by an allowed corridor of fluctuation in the trade-weighted S-dollar of specified slope, band width and band-midpoint. Policy […] More
New Overnight Developments Abroad - Daily Update
Less Risk Aversion than Yesterday
October 15, 2015
Share prices recovered 2.4% in China, 2.1% in Hong Kong, 1.2% in Japan and South Korea, 1.1% in New Zealand and Singapore, 0.9% in India and Taiwan, and 0.% in Australia. Equities have risen in Europe so far today by 1.7% in Germany and Italy, 1.4% in France, 1.1% in Greece, 0.6% in Spain and […] More
Foreign Exchange Insights and Next Week
EUR/USD and the Price of Oil
October 14, 2015
EUR/USD and the price of oil (West Texas Intermediate) have moved more or less inversely since the cost of energy peaked in June 2014. This correlation can been observed in the table below of month-end to month-end changes in the dollar against the euro and of the price of oil. The direction of change in […] More
New Overnight Developments Abroad - Daily Update
New Zealand Dollar Volatility and Some Interesting Data Reports
October 14, 2015
A speech by Governor Wheeler of the Reserve Bank of New Zealand whip-sawed the kiwi. The currency initially fell 0.4% to as low as USD 0.6619 when the central bank head indicated that the Official Cash Rate probably will fall further, contingent on future economic news, but it then roared back to USD 0.6726, a […] More
New Overnight Developments Abroad - Daily Update
New Wave of Volatility and More Disinflationary Data
October 13, 2015
Yesterday’s plunge in oil prices has been followed by news of a 20.4% on-year decline in Chinese import prices and a 1.1% slide in the Aussie dollar against its U.S. counterpart. The greenback is also up 0.7% against sterling, 0.4% relative to the loonie, 0.5% vis-a-vis the kiwi, and 0.3% against the yuan. The dollar […] More
New Overnight Developments Abroad - Daily Update
Euro Touches but Doesn’t Penetrate $1.1400
October 12, 2015
Market activity this Monday will be blunted by holiday closures in the United States (Columbus Day), Spain (Hispanic Day), Japan (Health Sports Day) and Canada (Thanksgiving). Only minor data were released today. The IMF/World Bank meeting in Lima, Peru wound up with Director Lagarde warning of the dangers of premature tightening of monetary policy, and […] More
Foreign Exchange Insights and Next Week
Next Week
October 9, 2015
Central Banks: Policy meetings are scheduled next week in Mexico, South Korea, Indonesia and Peru. The Fed Beige Book of regional conditions will be published. BOJ minutes arrive. Lockhart, Dudley, Evans, Mester, Brainard and Bullard of the Federal Reserve speak publicly as do Deputy Governors Lowe of the Reserve Bank of Australia and Nakaso of […] More
