Foreign Exchange Insights and Next Week
How High Might the Dollar Climb?
December 2, 2015
December figures to be a watershed month for the dollar, since the divergence of monetary policies is likely to become significantly wider. That’s a hugely positive development for the dollar in theory. In anticipation, market participants bid the dollar up slightly more than 4.0% in November against the euro and Swiss franc and between 2% […] More
Central Bank Watch
Bank of Canada Retains Existing Very Accommodative Policy Stance
December 2, 2015
In the first half of 2015, Canada experienced back-to-back quarterly economic contractions, constituting a recession, but such was short-lived, as real GDP rose 2.3% at an annualized rate last quarter in spite of a 1.1 percentage point inventory drag. Twice earlier this year in January and July, the Bank of Canada Board voted to cut […] More
Central Bank Watch
National Bank of Poland’s Reference Interest Rate Left at 1.5%
December 2, 2015
Having cut its interest rate by 225 basis points from 4.75% to 2.5% between July 2013 and November 2012, the Monetary Policy Council did not make a further change until the first quarter of 2015. Two more 50-basis point reductions were implemented in January and March in response to an increasingly disinflationary global environment. The […] More
New Overnight Developments Abroad - Daily Update
U.S. December Interest Rate Hike Still Expected
December 2, 2015
In spite of yesterday’s weak U.S. purchasing managers survey in which the November index (48.6) fell to its lowest level since mid-2009, market participants by and large anticipate an initial federal funds rate hike later this month. In fresh U.S. developments today, ADP estimates a greater-than-assumed 217K increase in private-sector employment last month and revised […] More
