New Overnight Developments Abroad - Daily Update
Stocks Fall and Dollar Rally Pauses
August 25, 2016
Today’s shocker came from the German IFO Institute’s monthly business climate index, which dived 2.1 points in August to a 6-month low of 106.2. Current conditions (down 2.0 points to a 7-month low) and business expectations (off 2.0 points to a 6-month trough) shared equally in this considerably weaker than expected outcome. Several data reports […] More
Central Bank Watch
Central Bank of Iceland
August 24, 2016
Icelandic monetary authorities implemented their first interest rate change, a reduction of 50 basis points, since a hike last November and their first rate cut since December 2014. Moreover, forward guidance on future rate changes switched from a bias toward increases to an ambivalent signal. After the Monetary Policy Committee’s prior meeting in early June, […] More
Central Bank Watch
Investors Continue to Mark Time Ahead of Jackson Hole Symposium
August 24, 2016
Overnight the dollar rose 0.2% against the euro and 0.1% versus the Swiss franc but slipped 0.3% against the kiwi and 0.2% relative to sterling. There’s been no net change vis-a-vis the yen or Aussie dollar. Share prices rose 0.7% in Singapore, 0.3% in India and 0.6% in Japan but fell 0.7% in Hong Kong […] More
Central Bank Watch
Magyar Nemzeti Keeps Loose Stance but Doesn’t Augment Such
August 23, 2016
Hungary’s Base Rate has been 0.90% since three consecutive reductions of 15 basis points earlier this year in March, April and May. From August 2012 to July 2014 the rate had been slashed to 2.1% from 7.0%, and its was redued by a further 75 basis points between March and July of 2015. Today’s statement […] More
Central Bank Watch
Central Bank of the Republic of Turkey Cuts Marginal Funding Rate Again
August 23, 2016
The MFR had earlier been reduced by 25 basis points in March, 50 bps each in April, May and June, and 25 bps to 8.75% in July. Today’s cut was by 25 basis points to 8.5% versus 10.75% at the start of 2016. The most recent of these easings were implemented in spite of a […] More
New Overnight Developments Abroad - Daily Update
Stronger New Zealand Dollar
August 23, 2016
Several currencies strengthened against the U.S. dollar, led by the kiwi and not including the euro. The greenback lost 0.7% against the New Zealand dollar, 0.3% relative to the loonie, yen and sterling, and 0.1% versus the Aussie dollar and yuan, but it gained 0.3% against the euro and is unchanged against the Swiss franc. […] More
New Overnight Developments Abroad - Daily Update
Slow Day for News
August 22, 2016
Even by usual Monday standards, hardly any economic data have been released today, and the week’s main event is still four days away. That will be Janet Yellen’s speech on Friday at the K.C. Fed Jackson Hole Symposium. Despite recent hawkish comments from the likes of New York Fed President Dudley, markets are not currently […] More
Central Bank Watch
Bank Indonesia Leaves Key 7-Day Reverse Repo Unchanged at 5.25%
August 19, 2016
A new monetary policy framework has been launched, but the main interest rate has been left steady at 5.25%. The 7-Day reverse repo of 5.25% replaces the function of the BI reference rate that had been at 6.5% after four 25-bp cuts earlier this year. The reverse repo rate will be flanked symmetrically by a […] More
New Overnight Developments Abroad - Daily Update
Dollar Up But Stocks Lower
August 19, 2016
The dollar rose overnight by 0.9% against the Aussie dollar, 0.4% relative to the loonie, yuan and sterling, 0.3% versus the yen and Swiss franc and 0.2% against the kiwi and euro. In European stock market action, share prices have dropped 2.0% in Italy, 1.2% in Spain, 1.0% in Greece, 0.8% in Switzerland, 0.7% in […] More
Foreign Exchange Insights and Next Week
Next Week
August 18, 2016
Jackson Hole Symposium: This annual event sponsored by the Kansas City Fed runs from August 25 to 27. This year’s theme is “Designing Resilient Monetary Policy Frameworks for the Future.” Scheduled Interest Rate Policy Meetings: Turkey, Iceland and Hungary. U.S. Data Releases: Revised GDP, new and existing home sales, the FHFA house price index, durable […] More
