Uncategorized
Stocks Up, and Peso Recovery Extended
June 26, 2017
Equities began the final week of the second quarter mostly on a rising note, with gains of 1.3% in Taiwan, 0.9% in China and Hong Kong, 0.6% in New Zealand, 0.4% in South Korea and 0.1% in Japan and Australia. Several markets were shut for the end of Ramadan. Share prices in Europe have advanced […] More
Foreign Exchange Insights and Next Week
Next Week
June 23, 2017
Holidays: For post-Ramadan celebrations, Indonesia will be closed all week, and India and Singapore are to be shut on Monday. Friday marks the end of June and second quarter. Central Banks: Monetary policy meetings in the Czech Republic and Sri Lanka. A summary of the Bank of Japan’s Board meeting in mid-June will be published. […] More
New Overnight Developments Abroad - Daily Update
Mexican Rate Hike, Some Preliminary PMI Results, and a Trump Revelation
June 23, 2017
Mexico’s key central bank interest rate was hiked by an additional 25 basis points to 7.0%, bringing its cumulative rise to four percentage points from 3% prevailing from October 2014 through the early December 2015. However, Bank of Mexico officials suggested in a statement that no more tightening may be necessary. See review. The peso […] More
Central Bank Watch
Bank of Mexico
June 22, 2017
Mexico’s key central bank interest rate was raised for the seventh time since September and the tenth time since December 2015. Over the entire year and a half span, the rate has been lifted from 3.0%, the level between October 2014 and December 2015, to 7.0%. Today’s increase had been expected. CPI inflation of 6.3% […] More
Central Bank Watch
Bank of Norway
June 22, 2017
The Executive Board at Norges Bank left the key Norwegian policy rate at 0.50% and released a statement that indicates the rate is unlikely to be raised until 2019 and then at only a gradual pace. Inflation has been lower than assumed previously despite higher-than-projected capacity usage. Inflation expectations are firmly anchored. Norway’s central bank […] More
Central Bank Watch
Central Bank of The Philippines
June 22, 2017
The Filipino reverse repo rate is being maintained at 3.0%. A statement released after the latest policy review, which left all other policy settings unchanged as well, projects manageable in-target CPI inflation (2-4%) in 2017-19 but concedes that risk surrounding the forecast is tilted to the upside. Price expectations remain well-anchored, and the outlook for […] More
Central Bank Watch
Reserve Bank of New Zealand Policy Rate Unchanged
June 22, 2017
From a high of 3.5% between late July 2014 and mid-June 2015, the RBNZ’s official cash rate was cut in half via seven 25-basis point reductions. The last of these occurred in November 2016 and left the OCR at its current 1.75% level. A statement released following the latest policy review defends continuing an accommodative […] More
New Overnight Developments Abroad - Daily Update
Little Change in the Dollar as Oil Stays Low
June 22, 2017
The U.S. dollar has lost 0.4% against the kiwi, 0.2% versus the peso and loonie and 0.1% relative to the yen but risen 0.2% against the Australian dollar and 0.1% vis-a-vis the euro, Swiss franc and yuan. Although 0.6% higher overnight, WTI crude oil remains very depressed at $42.79 per barrel, 21.4% lower than its […] More
New Overnight Developments Abroad - Daily Update
Rising Investor Caution
June 21, 2017
With a low of $43.33 per barrel, West Texas Intermediate oil has fallen 20.4% from its February 23 closing high of $54.45. The sliding energy sector weighed especially had on Australian equities, which fell 1.6% today. Stocks also dropped 0.9% in Singapore, 0.8% in New Zealand, and 0.5% in Japan and South Korea. And in […] More
Foreign Exchange Insights and Next Week
A Tale of Two Currencies: the Dollar and Sterling
June 20, 2017
The political landscapes in the United States and Great Britain underwent transforming change during the past year. In the pendulum that ranges from globalism to nationalism, each of these countries took a decisive turn away from an international orientation. Tighter control over immigration featured prominently in the U.K. decision to leave the European Union and […] More
