Central Bank Watch
A Second 25-Basis Point Brazilian Selic Rate Cut
November 30, 2016
The Central Bank of Brazil’s Selic Rate was reduced at a second straight meeting by 25 basis points to 13.75%. A similar reduction on October 19 had constituted a trend change. Previously between October 2014 and July 2015, Brazilian monetary policymakers had increased interest rates by 325 basis points from 11.0% to 14.25%. Officials on […] More
Foreign Exchange Insights and Next Week
Two Surprises With Different Currency Results
November 30, 2016
2016 will be remembered politically for the British referendum vote in late June to leave the European Union even if such means weaker British economic growth in the long term and the U.S. election in early November of Donald Trump, the significance of which remains quite uncertain. Sterling has fallen, but the dollar has climbed […] More
Deeper Analysis
November in Figures
November 30, 2016
World financial markets spent most of November grappling with the implications of Donald Trump’s unexpected victory and the Republican Party’s coming control of the executive, legislative and judicial branches of the federal government, as well as most state governorships and legislatures. A possible December hike of the federal funds target became a virtual certainty after […] More
New Overnight Developments Abroad - Daily Update
OPEC Production Cut Accord Sets Tone for Wednesday’s Financial Markets
November 30, 2016
OPEC oil ministers in Vienna announced a 1.2 million barrel per day production cut to 32.5 mb/d. Saudi Arabia, Iraq and Iran are on board, and there’s reason to believe Russia will take actions to make the agreement work. It’s the first cut since 2008. Brent oil jumped above $50, and West Texas Intermediate crude […] More
Central Bank Watch
Central Bank of Sri Lanka Keeps Monetary Policy Stance Unchanged
November 29, 2016
The Standing Deposit Facility Rate was kept at 7.0%, and the Standing Lending Facility Rate remains at 8.5%. Each had been raised twice earlier this year in February and July. Those moves and a 150-basis point hike of reserve requirements last December represent a trend reversal after four 50-basis point cuts between October 2012 and […] More
New Overnight Developments Abroad - Daily Update
Many Data Releases and a Drop in Oil
November 29, 2016
With Wednesday’s OPEC meeting in Vienna looming, WTI oil slumped 3.6% to $45.38 per barrel. No deal to control production has emerged so far. Gold and industrial metal prices are lower, too. The dollar weakened overnight by 0.7% against sterling and the kiwi and also dipped 0.2% against the yuan and 0.1% versus the euro. […] More
New Overnight Developments Abroad - Daily Update
Markets Back to Feeling Uneasy about the Future
November 28, 2016
U.S. stocks opened lower. In Europe, share prices started the cusp week between November and December on the back foot, falling so far by 2.8% in Greece, 0.8% in Italy, 0.7% in Germany, 0.4% in the U.K., 0.5% in France, and 02% in Switzerland and Spain. Equities also fell 0.8% in Australia, 0.2% in Indonesia […] More
Foreign Exchange Insights and Next Week
Next Week
November 26, 2016
Special Events: OPEC oil ministers meeting on November 30th in Vienna. OECD publishes its Outlook on November 28th. Central Banks: Monetary Policy meetings in Brazil and Sri Lanka. New York Federal Reserve District President Dudley speaks, and the Beige Book of U.S. regional economic conditions will be published. Reserve Bank of New Zealand Governor Wheeler […] More
New Overnight Developments Abroad - Daily Update
Thanksgiving 2016 Gives Japan Reason to Be Grateful
November 24, 2016
The yen, which had been as strong as 101.20 per dollar on November 9, extended its post-U.S. election slide to a low today of 113.54. EUR/YEN strengthened past 119.1. Japanese share prices have rallied on the more competitive yen, rising another 0.9% overnight. While U.S. and other sovereign debt yields have climbed, the 10-year Japanese […] More
New Overnight Developments Abroad - Daily Update
Wednesday Before Thanksgiving Rundown
November 23, 2016
The dollar gained broad ground, closing near the day’s highs including 112.53 per yen. Japanese markets were closed for Labor Thanksgiving. Stocks and bond yields climbed. Gold fell below $1,200 per ounce and WTI oil touched $48.0 per barrel. Bank Negara Malaysia retained a 3.0% overnight policy rate as expected. Preliminary PMI surveys were reported […] More
