Archive for April 2016

New Overnight Developments Abroad - Daily Update

FOMC Day and an Australian Data Surprise

April 27, 2016

The Federal Open Market Committee will release a statement at 14:00 EDT (18:00 GMT) on the results of its third policy meeting of 2016.  The federal funds rate is not expected to change, and attention will be focused on comments regarding U.S. economic conditions and likely prospects for clues to the timing of the next […] More

Central Bank Watch

Another 15-Basis Point Central Bank Rate Cut in Hungary

April 26, 2016

Magyar Nemzeti Bank cut its base rate to 1.05% from 1.20%.  The rate had been frozen at 1.35% from July 2015 until last month’s meeting when a similar-sized rate cut was implemented in conjunction with a significant downwardly revised inflation projection.  A statement released today concludes that “the sustainable achievement of the inflation target points […] More

New Overnight Developments Abroad - Daily Update

Chernobyl Anniversary, Five U.S. Primaries, and Firmer Oil Price

April 26, 2016

Today is the 30th anniversary of the nuclear reactor accident in Chernobyl.  That event still constrains use of nuclear power even as the planet continues to warm. Today’s U.S. presidential primaries are in Pennsylvania, Maryland, Connecticut, Delaware, and Rhode Island.  384 Democratic Party delegates and 118 Republican delegates are at stake.  Trump is expected to […] More

New Overnight Developments Abroad - Daily Update

A Commodities Cloud Over World Financial Markets

April 25, 2016

The prices of crude oil (WTI down 1.3% to $43.16) and many industrial metals have fallen at the start of the new week, leading to a risk averse mood.  Gold is steady at $1,233.15 per ounce. Equities in Asia lost 0.8% in Japan, 0.4% in China, 1.2% in Hong Kong, 1.4% in Singapore, 0.7% in […] More

Foreign Exchange Insights and Next Week

Next Week

April 22, 2016

Central Banking:  Interest rate policy meetings are scheduled in the U.S., Japan, Russia, Brazil, New Zealand and Hungary.  Governor Poloz of the Bank of Canada and President Jordan of the Swiss National Bank speak publicly. Holiday Closures:  Monday in Australia for Anzac Day and Friday in Japan for Showa Day, the of four Golden Week […] More

New Overnight Developments Abroad - Daily Update

A Weak Yen and Lackluster PMI Reports

April 22, 2016

The yen has declined 1.0% on balance against the dollar on unconfirmed reports that the Bank of Japan will announce fresh stimulus next week including the expansion of sub-zero interest rates to its lending to banks. Against other currencies, the dollar lost 0.5% against sterling and by 0.2% relative to the loonie and Aussie dollar.  […] More

Central Bank Watch

ECB Governing Council Statement and Press Conference

April 21, 2016

Fresh action had not been expected at the April policy meeting following the plethora of actions unveiled at the March 10 meeting.  As predicted, the refinancing, deposit and marginal lending rates were kept at zero, -0.40% and +025%, and the emphasis of today’s message was on full implementation of steps announced in March.  The statement […] More

Central Bank Watch

Swedish Riksbank Executive Board Extends Quantitative Easing

April 21, 2016

Sweden’s negative repo rate was left at -0.50%.  It took seven spaced reductions between December 2011 and October 2014 to cut the policy rate from 2.0% to zero.  Negative rate policy was introduced in February 2015 initially at -0.10%, then lowered by 15 basis points in March 2015, 10 bps in July 2015, and 15 […] More

Central Bank Watch

National Bank of Ukraine

April 21, 2016

Ukraine’s key monetary policy rate has been reduced by three percentage points to 19%.  This was the third cut in eight months, the earlier two being moves of three percentage points in August 2015 and five percentage points a month later.  A released statement cites diminishing upside inflation risks and also announces operational changes to […] More

Central Bank Watch

Bank Indonesia

April 21, 2016

Having implemented 25-basis point cuts in the BI rate in each month of last quarter, Indonesia’s central bank board of governors kept the rate unchanged at 6.75% at its April monthly meeting.  There was also an earlier 25-basis point cut in February 2015, so the current level is a full percentage point lower that the […] More

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