Archive for December 2015

New Overnight Developments Abroad - Daily Update

Closing Early For Christmas

December 24, 2015

The dollar depreciated overnight by 0.5% against the yen, Swissie and Australian dollar, 0.4% versus the euro and kiwi, and 0.3% relative to sterling.  The dollar edged 0.1% against its Canadian counterpart and is unchanged vis-a-vis the Chinese renminbi. Stock markets were closed today in Germany, Italy, Norway, Switzerland, Finland, New Zealand, Australia, Malaysia, Hong […] More

New Overnight Developments Abroad - Daily Update

Narrowly Mixed Dollar

December 23, 2015

The biggest dollar move overnight is a 0.5% slide against sterling.  Otherwise, the U.S. currency is down 0.2% versus the loonie and 0.1% relative to the yen, unchanged vis-a-vis the yuan, and up 0.2% against the euro, Swissie and kiwi and 0.1% firmer relative to the Aussie dollar. West Texas Intermediate crude oil was bid […] More

Central Bank Watch

A Trio of Latin American Central Bank Rate Hikes

December 22, 2015

Monetary officials in Chile, Colombia and Mexico wasted little time last week matching the FOMC’s 25-basis point interest rate hike. The Central Bank of Chile policy rate was lifted to 3.5%.  This was the second Chilean tightening of the cycle following one in mid-October.  Previously, 225 basis points of rate cuts were spaced out between […] More

Central Bank Watch

Turkish Policy Inaction Generates Market Surprise

December 22, 2015

Turkey’s complexity of interest rates — a 7.5% one week repo, 10.75% overnight lending rate, and 7.5% overnight borrowing rate — last got modified on February 24, 2015.  After the prior meeting, hints were conveyed that monetary officials hope to soon start returning to a more conventional single rate objective and that the main one-week […] More

New Overnight Developments Abroad - Daily Update

Looking for U.S. Data to Provide Today’s Market Guidance

December 22, 2015

Revised U.S. GDP heads a bunch of data releases later this morning that also includes existing home sales, the Richmond Fed manufacturing index, home prices, and weekly Johnson-Redbook chain store sales.  The GDP revision is likely to show less growth than reported initially. The Australian and New Zealand dollars were well bid overnight, climbing 0.8% […] More

Foreign Exchange Insights and Next Week

Currency Landscape as 2015 Draws Nearer to Completion

December 21, 2015

The past twelve months have seen the U.S. currency strengthen broadly but most sharply against emerging market and commodity-sensitive currencies.  Net dollar changes since end-2014 or -0.1% against the Swiss franc, +1.3% versus the Japanese yen and +4.5% relative to the British pound were generally modest, while advances of 11.2% vis-a-vis the euro, 14.3% against […] More

New Overnight Developments Abroad - Daily Update

Quiet Start to Holiday-Riddled Week

December 21, 2015

The dollar is unchanged against the euro, yen, loonie and yuan.  The U.S. currency gained 0.2% relative to the Swiss franc and 0.1% versus the Aussie dollar and sterling but edged down 0.1% vis-a-vis the kiwi. Splintered Spanish election results have depressed the Spanish IBEX by 2.5%, but other stock markets are mostly higher after […] More

Foreign Exchange Insights and Next Week

Next Week

December 19, 2015

Central Bank Watch:  Turkish interest rate meeting and released minutes of Bank of Japan November meetings. Holidays:  Japan on Wednesday for Emperor’s birthday.  Most markets close early on Thursday.  Christmas on Friday observed in most markets with the notable exception of Japan. Special Political Event:  Spanish parliamentary election on December 20. Scheduled U.S. data:  Revised […] More

New Overnight Developments Abroad - Daily Update

Markets Confused and Fearful about the Coming Year

December 18, 2015

Noontime in New York finds U.S. equities down over 1.0%, the ten-year Treasury yield off two basis points, and the dollar depressed by 1.3% against the yen, 1.0% versus the Aussie dollar, 0.8% relative to the kiwi, 0.5% against the loonie, 0.4% vis-a-vis the euro and 0.1% against sterling. Share prices fell 1.9% in Japan […] More

Central Bank Watch

Bank of Japan

December 18, 2015

After a Board meeting of five hours 36 minutes over two days that wasn’t expected to producer any policy changes, a statement was released that pushed out the targeted average maturity of the bank’s JGB portfolio to 7-12 years from 7-10, launched a second EFT purchase program amounting to slightly less than $2.5 billion per […] More

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