New Overnight Developments Abroad - Daily Update
Oil and Stocks Firmer
July 26, 2017
The Federal Open Market Committee completes its two-day policy review and will announce its findings and plans at 14:00 EDT (18:00 GMT). See preview. Second-quarter corporate earnings have been mostly better than expected and have provided a supportive foundation for equities. 10-year sovereign debt yields are down three basis points in the U.K., 2 bps […] More
Central Bank Watch
FOMC Preview
July 25, 2017
The Federal Open Market Committee began a two-day policy review today and will release a statement at 18:00 GMT (14:00 EDT) on Wednesday, July 26 announcing and defending its conclusions. This is the fifth scheduled meeting of 2017. There were previous 25-basis point hikes in the federal funds target range (now 1.00-1.25%) in March and […] More
New Overnight Developments Abroad - Daily Update
Wide Spectrum of Developments Elicit Financial Market Response
July 25, 2017
In an escalated barrage of complaints, President Trump has lashed out at a range of adversaries: Attorney General Sessions, Congressional Republicans, Hillary Clinton, Bob Meuller, and the press. A vote on repealing the Affordable Care Act seems likely in the Senate this afternoon. The Federal Open Market Committee began a two-day policy meeting today. U.S. […] More
New Overnight Developments Abroad - Daily Update
July’s Flash Japanese and Euro Area PMI Readings Below June Scores
July 24, 2017
The dollar began the new week trading up 0.2% against the euro and peso and edging 0.1% higher vrsus the Swissy and kiwi, but the greenback also depreciated 0.5% relative to the Australian dollar and 0.2% against the yuan, yen, loonie and sterling. U.S. stocks opened slightly lower. The Nikkei lost 0.6%. So did Australia’s […] More
Foreign Exchange Insights and Next Week
Dollar Image Still Eroding
July 23, 2017
The initial advance of the dollar after Donald Trump’s election has been erased. The euphoria had stemmed from a belief that federal government policy would be legislated more easily with single party control and that the Trump proposals of tax relief, financial market deregulation, fair trade, and infrastructure repair would lift productivity, shrink the trade […] More
Foreign Exchange Insights and Next Week
Next Week
July 21, 2017
Central Bank: Monetary policy meetings in the United States (but no press conference afterwards), Brazil, Russia, Turkey and Colombia. Bank of Japan to release a “summary” of its July meeting and minutes from its June Board meeting. Reserve Bank of Australia Governor Lowe speaks publicly. Special Event: Meeting scheduled for Monday in St. Petersburg, Russia […] More
New Overnight Developments Abroad - Daily Update
Dollar Grinds Lower and European Equities Fall Sharply
July 21, 2017
The dollar lost another 0.6% against the yen, 0.5% versus the kiwi, 0.4% relative to the Swiss franc, 0.3% vis-a-vis the loonie, 0.2% against the euro and 0.1% versus sterling. The dollar made gains of 0.5% against the Aussie dollar, o.3% versus the Mexican peso and 0.1% relative to the yuan. Investors are reacting to […] More
Central Bank Watch
South African Reserve Bank Repo Rate Cut
July 20, 2017
South Africa’s central bank interest rate was cut for the first time in several years, and the decision drew dissents favoring no change by two of the Monetary Policy Committee’s six members. South African GDP unexpectedly contracted in the first quarter in a broad-based way. The growth outlook has worsened. Excess product supplies will consequently […] More
Central Bank Watch
European Central Bank Espouses Patience and Persistence
July 20, 2017
The latest Governing Council statement expresses growing confidence in growth and a return of inflation to target but fails to define when policy stimulus will be throttled back and the possible timetable for such a process. The signals are mixed. The statement reiterates that quantitative stimulus will continue for as long as necessary and doesn’t […] More
Central Bank Watch
Bank of Japan: Same old, Same old
July 20, 2017
Japanese monetary policy, although institutionally independent, suffers from chronically rigid thinking. The latest policy review produced 1) unchanged policy settings,2) another 7-2 vote with Kiuchi and Sato objecting to the majority’s policy preference for the same reasons that they have dissented at countless prior meetings, and 3) yet another outward push in the collective projected […] More
