Central Bank Watch
Central Bank of the Republic of Colombia
August 31, 2017
Colombia’s central bank interest rate was lowered by 25 basis points to 5.25%, bringing the cumulative decline over the past six monthly meetings to 175 basis points. A majority of four policymakers wanted a 25-basis point cut, while two preferred a reduction of 50 basis points, and one voted not to cut the rate at […] More
Deeper Analysis
August in Figures
August 31, 2017
Ten-year sovereign debt yields feel pretty much in tandem during August except in Japan where the drop was less sizable but consistent with the Bank of Japan’s target. Short-term interest rates remained low and well anchored by ultra-loose monetary policy stances. The dropped significantly against the Chinese yuan and marginally against traditional “hard currencies” like […] More
Central Bank Watch
Bank of Korea
August 31, 2017
The Bank of Korea Base Rate was left unchanged at 1.25%, its level since a 25-basis point cut in June 2016, and that had been the first change in a year’s time. South Korean monetary policy is accommodative, and the next rate change most likely will be an increase than another cut. Inflation has climbed […] More
New Overnight Developments Abroad - Daily Update
Firmer Dollar on this Last Day of August
August 31, 2017
The dollar climbed overnight by 0.8% against the kiwi, 0.4% relative to sterling, 0.3% versus the peso, and 0.2% vis-a-vis the euro, yen, Swissy, Canadian dollar and Australian dollar. The greenback also edged up 0.1% against the yuan. Gold dipped 0.2%. Lots of data reported today. Stocks were mixed overnight in Asia but are mostly […] More
Deeper Analysis
Second-Quarter Growth in Selected Industrial Economies
August 30, 2017
United States: A 3.3% rise of personal consumption on a seasonally adjusted annualized rate (SAAR) accounted for 76% of the 3.0% SAAR advance of real GDP. Net exports and non-residential business investment increased, too, and made a collective 1.1 percentage point (ppt) contribution to GDP, while government spending slid 0.3% SAAR on quarter and by […] More
New Overnight Developments Abroad - Daily Update
A Somewhat Corrective Wednesday in the Market
August 30, 2017
The dollar recovered, sovereign debt yields rose and so have European and Asian equities overnight. The dollar climbed 0.4% against the euro, 0.3% versus the yen, 0.2% vis-a-vis the loonie, Swissy, and kiwi, and 0.1% relative to the Australian dollar. The dollar has dipped 0.1% versus the yuan and peso and is unchanged against sterling. […] More
Central Bank Watch
Bank of Israel Leaves Accommodative Policy Stance as Is
August 29, 2017
Two and a half years have now transpired since the Bank of Israel’s policy interest rate was last changed in February 2015 with the implementation of a cut of 15 basis points to 0.10%. That move culminated a 13-step easing of 75 basis points per year during the prior four calendar years. A statement released […] More
New Overnight Developments Abroad - Daily Update
The Wrath of Nature and North Korea Sends Markets into a Tizzy
August 29, 2017
So much for North Korean restraint in the face of Trump’s threat of “fire and fury” against that regime. North Korea fired a missile last night that sailed over Japan, seemingly calling the U.S. president’s bluff to prove how tough he can be. Meanwhile, Harvey continues to batter the Texas coast and is forecast to […] More
Foreign Exchange Insights and Next Week
Economic Convergence and Forecasting Forex
August 28, 2017
Members of the Group of Seven, a collection of industrial economies have experienced similar rates of economic growth during the past year. Between 2Q16 and 2Q17, real GDP advanced 2.1% in the United States, 2.0% in Japan, 2.1% in Germany, 1.8% in France, 1.7% in Great Britain, 1.5% in Italy, and 2.3% in Canada. Euroland’s […] More
New Overnight Developments Abroad - Daily Update
Catastrophic Texas Weather Depresses WTI Oil Price
August 28, 2017
The Texas coast is experiencing record flooding. West Texas Intermediate crude oil dropped 0.8% to $47.49 per barrel. The Dallas Fed manufacturing index will be reported later today but is a dated report already in light of Hurricane Harvey’s damage. The U.S. advance trade deficit estimate also arrives today. The speeches by Draghi and Yellen […] More
