Archive for August 2017

Foreign Exchange Insights and Next Week

Next Week

August 25, 2017

Manufacturing Purchasing Manager Surveys for August: China, Japan, Euroland, U.S., U.K., Switzerland, Italy, France, Germany, India, Poland, Czech Republic, Sweden, Norway, The Netherlands, Turkey, Hungary, Austria, Thailand, Taiwan, Malaysia, South Korea, Ireland, Indonesia, and Australia. Central Banks: Jackson Hole Symposium ends August 26. Central banks hold monetary policy meetings in South Korea, Colombia and Israel. […] More

New Overnight Developments Abroad - Daily Update

Market Eyes on Wyoming, Texas and D.C.

August 25, 2017

Speeches by Yellen at 14:00 GMT and Draghi at 19:00 GMT highlight today’s agenda at the central banking summit in Jackson Hole, Wyoming. The big economic mystery is the apparent disconnection between better growth yet continuing subdued global price and wage inflation. The questions surrounding monetary policy are whether the Fed sanctions another rate hike […] More

New Overnight Developments Abroad - Daily Update

Marking Time Ahead of the Jackson Hole Central Banking Symposium

August 24, 2017

The annual retreat of world central bankers in Northwest Wyoming kicks off this evening and runs through Saturday. This year’s conference topic is “Fostering a Dynamic Global Economy.” Fed Chair Yellen delivers a speech on financial stability at 14:00 GMT Friday. ECB President Draghi’s scheduled speech five hours later is attracting even more interest. Meantime, […] More

Central Bank Watch

Bank of Iceland’s August Policy Review

August 23, 2017

The 7-day deposit rate, which had been cut by 50 basis point sin August 2016 and by 25 bps each in May and June of this year, was left at 4.5% after the latest meeting of the monetary policy committee. A released statement revealed that projected GDP growth in 2017 was revised marginally lower but […] More

New Overnight Developments Abroad - Daily Update

Trump Fuels Public Angst Again

August 23, 2017

In vintage style, the U.S. president’s comments at a political rally in Phoenix was full of threats and accusations on a range of topics: a possible government shutdown if Congress doesn’t fund his “wall” proposal; blaming a few Republicans for the vote against repealing Obamacare; accusing the media for distorting his response to Charlottesville and […] More

Central Bank Watch

An Unexpected Interest Rate Cut by Bank Indonesia

August 22, 2017

Indonesia became the latest central bank from an emerging market economy to cut its interest rates. The previous six changes, each like today’s move a cut of 25 basis points, were implemented from January to October in 2016. Then easing was stopped because officials worried that Fed rate normalization would expose the rupiah and Indonesian […] More

Central Bank Watch

Central Bank of Hungary

August 22, 2017

Hungary’s key central bank interest rate was slashed from 7.0% some five years ago to 0.90% after a 15-basis point reduction on May 24, 2016. That was its last change. However, other rates like the overnight lending and deposit rates were reduced further subsequently — and are now at 0.90% and -0.05%. Other unconventional monetary […] More

New Overnight Developments Abroad - Daily Update

A Corrective Day in the Marketplace

August 22, 2017

The dollar rebounded, and so did most stock markets in Asia and Europe. Bond yields and gold eased back. These changes partly reverse trends in recent days but have no obvious reason for doing so other than it was time for a correction, however brief. After heavily criticizing the never-ending war in Afghanistan, President Trump […] More

Foreign Exchange Insights and Next Week

Comment on Euro-Yen Currency Pair

August 21, 2017

In spite of wide short-term variability in the euro’s yen cross rate, the relationship has been pretty stable over the long run. The financial crisis that began ten years ago this month occurred roughly 8-3/4 years after euro was created by merging several European currencies and putting all members of the newly formed euro area […] More

New Overnight Developments Abroad - Daily Update

A New Week Begins for Financial Markets and Trump Administration

August 21, 2017

Markets mostly marked time at the start of August’s fourth week, digesting an incredible week in U.S. politics and awaiting the Jackson Hole central bank symposium that begins on Thursday. The dollar was narrowly mixed overnight, rising 0.3% against the Swiss franc, 0.2% versus the loonie and 0.1% relative to the euro and Australian dollar, […] More

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