Archive for May 2017

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

Central Bank Watch

Central Bank of Hungary

May 24, 2017

The policy interest rate of Magyar Nemzeti Bank has been just 0.90% since a trio of cuts in March, April and May of 2016. A statement of the latest review defends the appropriateness of continuing that level and warns that “if inflation remains persistently below the target, the Council will stand ready to ease monetary […] More

Central Bank Watch

Bank of Thailand Keeps Status Quo

May 24, 2017

Thailand’s latest monetary policy review ended with a unanimous assertion of a continuing need for a growth-supporting accommodative stance. The monetary policy council retained a 1.5% policy rate. It’s been at that level since eight 25-basis point reductions implemented between November 2011 and April 2015. The seventh of those cuts was made in March 2015. […] More

New Overnight Developments Abroad - Daily Update

Moody’s Downgrades China… FOMC Minutes Due

May 24, 2017

Only industrial metal prices have reacted much to news that Moody’s downgraded its Chinese credit rating for the first time in nearly 30 years. Commodities have been the main mover today. Comex gold fell 0.3% to $1,251.70 per ounce. Industrial metal prices like nickel, iron ore, and copper tumbled much more steeply. But WTI oil […] More

New Overnight Developments Abroad - Daily Update

Better European Data, More Leaked Allegations on Trump, and a Terrorist Bomb Attack

May 23, 2017

The German business climate index compiled by the IFO Economic Institute increased 1.6 points in May to the highest level since German unification, a reading of 114.6. Current conditions went up 1.9 points, and expectations climbed 1.3 points in the latest month, prompting IFO officials to call the business mood euphoric and the pace of […] More

New Overnight Developments Abroad - Daily Update

A Different Trump on the Road

May 22, 2017

The first leg in Saudi Arabia of President Trump’s nine-day foreign trip went well. Gone was the xenophobic tone as his anti-terrorism message focused on Iran instead of Islam as a religion. There weren’t major cultural slips, and large business deals were consummated. Absent, too, were the usual Saturday tweets to add fuel to the […] More

Foreign Exchange Insights and Next Week

Next Week

May 19, 2017

Central Banks: Monetary policy meetings in Canada, South Korea, South Africa, Thailand and Colombia. Publication of FOMC minutes. Bullard and Kaplan of the Federal Reserve speak publicly. So will Bank of Japan Governor Kuroda, Bank of Canada Deputy Gov. Leduc, and Reserve Bank of Australia Assistant Governor DeBelle. Holidays: Victoria Day in Canada on Monday […] More

New Overnight Developments Abroad - Daily Update

A Somewhat Calmer Session

May 19, 2017

In Europe, stocks have risen 0.8% in Switzerland and Spain, 0.7% in Italy, 0.6% in Greece, 0.5% in France, 0.4% in the U.K., and 0.3% in Germany. China’s market closed unchanged. Japan’s Nikkei rose 0.2%, and Australia’s bourse slipped 0.2%. The erosion of the dollar’s external value continues. The euro climbed another 0.5%, capping its […] More

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