Archive for May 3rd, 2016

Central Bank Watch

Reserve Bank of Australia’s Official Cash Rate Reduced to 1.75%

May 3, 2016

The 25-basis point OCR reduction was not anticipated but likewise is not shocking juxtaposed against such recent data reports as these: Consumer prices had been expected to rise 0.2% last quarter but instead fell 0.2%, resulting in a 0.4 percentage point drop in the year-on-year pace to 1.3%. Core CPI inflation decelerated by 0.4-0.5 percentage […] More

Foreign Exchange Insights and Next Week

Covert Currency War Games

May 3, 2016

Even with U.S. monetary stimulus being throttled back and other central banks pressing harder on the stimulus pedal, the pace of policy change thus far and in the future will be too gradual to make a huge difference in a direct way through their influence on short- and long-term interest rate differentials.  The cutting edge […] More

New Overnight Developments Abroad - Daily Update

Risk Aversion Returns after Upbeat Monday

May 3, 2016

Stocks, Treasury yields, and oil prices faltered Tuesday for various reasons. Disappointing Chinese, British and Irish manufacturing purchasing manager surveys reported. Mediocre first-quarter U.S. corporate reports in the background. EU Commission’s Spring Forecast revised 2016 and 2017 projected growth marginally downward. Credibility of BOJ policy very low.  Japanese market shut for first of three consecutive […] More

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