Central Bank Watch
Brazilian Central Bank Flinches
January 21, 2016
The rhetoric late last year from Copom, the monetary policy committee at the Central Bank of Brazil, had encouraged market players to expect another tightening of the Selic interest rate, which from April 2013 to July 2015 had been lifted from 7.25% to 14.25%. Even though 14.25% represents the highest Selic rate level since October […] More
Central Bank Watch
Bank Negara Malaysia Keeps 3.25% Benchmark Interest Rate
January 21, 2016
Malaysia’s central bank interest rate was cut five times between March 2010 and July 2014 to its current level of 3.25%, which was retained at the latest meeting of the monetary policy committee. Officials assert that their policy stance is appropriately accommodative and will support growth, which has been only moderate. Inflation is expected to […] More
Central Bank Watch
European Central Bank Cuts Inflation View and Says More Stimulus is Possible in Early March
January 21, 2016
The previous Governing Council meeting on December 3 had cut the deposit rate by 10 basis points to negative 0.30%, extended the EUR 60 billion per month asset purchase program (APP) by six months to March 2017, and agreed to reinvest the maturing principal of assets purchased in the APP. Today’s meeting did not initiate […] More
New Overnight Developments Abroad - Daily Update
Central Banks Stand Down
January 21, 2016
In these tumultuous times, it would not be surprising to see monetary policy changes taken to help dissipate the high level of market fear. Instead, The ECB Governing Council retained its interest rate structure, consisting of a 0.05% refinancing rate flanked by a negative 0.30% deposit rate and a +0.25% marginal lending rate. Brazil’s monetary […] More
Central Bank Watch
Bank of Canada Retains 0.50% Overnight Interest Rate Target
January 20, 2016
Central banks are in the first stage of grief over what’s transpiring in financial markets this year, and the Bank of Canada is no exception. The take-away from today’s released statement is that policymakers are in a state of denial. Yes, forecast adjustments have been made in the face of year-to-date declines in the Toronto […] More
New Overnight Developments Abroad - Daily Update
Intensifying Risk Aversion
January 20, 2016
Share prices closed down 4.1% in Hong Kong, 3.7% (or 632 points) in Japan, 3.0% in Singapore, 2.3% in South Korea, 2.0% in Taiwan, 1.7% in India, 1.5% in China, 1.4% in Indonesia and 1.3% in Australia. Equity declines today in Europe so far amount to 6.8% in Greece, 3.2% in France, 3.1% in Switzerland, […] More
Central Bank Watch
Central Bank of the Republic of Turkey Holds its Fire
January 19, 2016
World financial market volatility did not simmer down after Turkey’s Monetary Policy Committee meeting on December 22, so policymakers did not act on the conditional promise expressed in that meeting’s statement to the public that said, “should the decline in volatility observed after the start of the global policy normalization persist, monetary policy simplification steps […] More
New Overnight Developments Abroad - Daily Update
Some Market Relief after Chinese Data Announced
January 19, 2016
The eagerly awaited Chinese economic data confirmed slower growth late in 2015 but not as much so as feared. Chinese data are notoriously distrusted, so one has to wonder how long today’s rally will last. The dollar fell 1.1% against the Australian dollar, 0.7% versus the loonie, 0.2% relative to the kiwi and sterling and […] More
New Overnight Developments Abroad - Daily Update
Equities Still on the Ropes as U.S. Observes MLK Day
January 18, 2016
U.S. markets will be closed in observance of Martin Luther King Jr.’s 87th birthday. Share prices in the Pacific Rim fell 1.4% in Singapore, 1.1% in Japan, New Zealand and India, 1.0% in Hong Kong and 0.7% in Australia. The stock markets in Greece, Italy and Spain show losses thus far today of 5.8%, 1.6% […] More
Foreign Exchange Insights and Next Week
Next Week
January 15, 2016
Holidays and Conferences: U.S. markets are closed Monday for Martin Luther King’s holiday. The World Economic Forum in Davos, Switzerland runs from Wednesday through Friday. Central Banks: Interest rate meetings are scheduled at the European Central Bank, Bank of Canada, and in Turkey, Brazil and Malaysia. Scheduled U.S. Data Releases: Consumer prices, housing starts, building […] More
