Archive for May 2017

Central Bank Watch

Israeli Central Bank Interest Rate Kept at 0.1%

May 29, 2017

Bank of Israel policymakers last changed their interest rate in February 2015 when a 15-basis point reduction capped an easing cycle that included 75 basis points of cut in each of the previous four years. Officials released a statement today the observed somewhat higher actual inflation and short-term expected inflation as well as solid growth and […] More

New Overnight Developments Abroad - Daily Update

Little Market Leadership Due to Holiday Closures

May 29, 2017

Markets are closed Monday in the United States for Memorial Day, Great Britain for a late spring bank holiday, and both China and Taiwan for the Dragon Boat Festival. The dollar is down 0.3% against the peso, 0.2% versus sterling and 0.1% relative to the loonie, euro, Swiss franc and kiwi. The dollar has edged […] More

Foreign Exchange Insights and Next Week

G7 Leaders Summit and the Dollar

May 28, 2017

Three matters attracted keen attention at the two-day summit of Group of Seven leaders in Taormina, Sicily: international terrorism, trade, and climate change. The first priority enjoyed the most agreement going into the meeting, and a considerable portion of the six-page communique is devoted to coordinating efforts to defeating terrorism in Syria, Libya, Iraq, North […] More

Foreign Exchange Insights and Next Week

Next Week

May 26, 2017

Numerous Holidays: U.S. Memorial Day and late spring bank holiday in the U.K. on Monday. Dragon Boat Festival in China (May 28-30) and Hong Kong (Tuesday). Pancasila Day in Indonesia on Thursday and Italy’s Republic Day on Friday. Central Bank Action: Policy meetings in Israel and Brazil. Release of Federal Reserve Beige Book and Bank […] More

New Overnight Developments Abroad - Daily Update

Soft Tone in Sterling, Sovereign Debt Yields, Oil and Stocks

May 26, 2017

Sterling fell 0.7% against the dollar overnight in response to a new poll showing just a 5-point spread between Prime Minister May’s Conservatives and the Labor Party; the spread earlier had been over 20 points. Britain’s parliamentary election is scheduled for June 8. Sterling declined more sharply against several other currencies, as the dollar is […] More

Central Bank Watch

South African Reserve Bank Retains 7.0% Repo Rate

May 25, 2017

SARB’s repo rate had been raised in six steps to 7% from 5% between January 2014 and March 2016. The latest 5-1 voting decision not to change the 7% level has one dissenter, who as at the prior meeting favored cutting the rate to 6.75%. Although latest inflation readings were unexpectedly low, upside risks namely […] More

Central Bank Watch

Bank of Korea

May 25, 2017

South Korea’s central bank base rate was again left at 1.25%. It’s been at that level since a 25-basis point cut in June 2016. Previously a pair of such reductions were each implemented in 2014 and 2015. A released statement after the May monthly policy review projects sub-target total core inflation in the mid- to […] More

New Overnight Developments Abroad - Daily Update

Nato and Opec Meetings Attracting Attention, as Does Weak British GDP Report

May 25, 2017

A row broke out over U.S. leaking of key intelligence from the Manchester bombing investigation between the May and Trump governments just prior to today’s Nato meeting in Brussels. Prime Minister May will speak to President Trump about U.S. leaks, and Britain reportedly has stopped sharing information with U.S. on the matter. West Texas Intermediate crude […] More

Deeper Analysis

Some Revealing Excerpts from May 2-3 FOMC Minutes

May 24, 2017

The excerpts below lend credence to rising expectations that the federal funds rate target will undergo its fourth increase at the June meeting. At the same time, great emphasis is placed on ensuring that rate normalization proceed at a gradual pace. The same feeling surrounds balance sheet reduction, which also will proceed at a very […] More

Central Bank Watch

Bank of Canada Leaves Overnight Rate at 0.50%

May 24, 2017

There have been only five changes in the Bank of Canada interest rate, all by 25 basis points, since the Great Recession ended for a net change of +25 basis points. The first three moves in June-September of 2010 were increases, and the most recent two were cuts in January and July of 2015. A statement […] More

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