Archive for March 24th, 2016

Foreign Exchange Insights and Next Week

Managing the Dollar Through a Period of Policy Normalization

March 24, 2016

So far, so good.  After years of running an extraordinarily loose monetary policy required by insufficiently high inflation, excessive labor market capacity, an inappropriately tight U.S. fiscal stance, and broken-down Washington politics offering no hope for a more balanced macroeconomic strategy, the Fed faces the challenging task of policy normalization.  It goes without saying that […] More

Central Bank Watch

Central Bank of the Republic of Turkey Narrows Overnight Interest Rate Corridor by 25 Basis Points

March 24, 2016

The 7.5% one-week repo rate and 7.5% overnight deposit rate were left unchanged, but the 10.75% overnight lending rate was cut to 10.5% at the latest meeting of Turkey’s Monetary Policy Committee.  At a few previous meetings, officials had delayed a promised simplification of their Byzantine rate structure, but now a small first step in […] More

Central Bank Watch

Central Bank Interest Rate Cut in Taiwan

March 24, 2016

The Board of the Central Bank of the Republic of China (Taiwan) meets on a quarterly basis and, as done last September and December, cut its three interest rates including the main rediscount rate by 12.5 basis points at this month’s review.  Three of the five 12.5-basis points hikes engineered between June 2010 and June […] More

New Overnight Developments Abroad - Daily Update

Investor Sentiment Spooked by Fed Official Rhetoric

March 24, 2016

Led by oil, commodity prices have dropped.  West Texas Intermediate crude oil dropped 2.5% to $38.81 per barrel after indications of rising U.S. inventories.  Comex gold edged 0.1% lower to $1,218.83 per ounce. The Shanghai Composite index of Chinese share prices fell 1.6%, most in two weeks.  Equities closed down 1.3% in Hong Kong, 1.1% […] More

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