Archive for October 2017

New Overnight Developments Abroad - Daily Update

A Fresh Political Mandate in Japan, While U.K. and Spain Stay Embroiled in Uncertainty

October 23, 2017

The Japanese Nikkei jumped 239 point or 1.1% following Sunday’s lower house election that gave Prime Minister Abe a resounding mandate and his LDP-led ruling coalition with Komeito more than a two-thirds majority in both houses of parliament. Abe now has the wherewithal to enact constitutional revisions that will affect foreign policy. The ten-year JGB […] More

Foreign Exchange Insights and Next Week

Next Week

October 20, 2017

Central Bank Action: Monetary policy meetings are scheduled at the European Central Bank, Bank of Canada, Swedish Riksbank, Bank of Norway, Central Bank of Brazil, Bank of Russia, and central banks in Ukraine, Colombia, Turkey, and Hungary. The ECB’s quantitative stimulus plans in 2018 will be detailed, and the Bank of Canada will release a […] More

New Overnight Developments Abroad - Daily Update

Dollar Climbs on Likelier U.S. Tax Reform

October 20, 2017

The dollar benefited from several factors on Friday, climbing 0.7% against the yen, kiwi and Swiss franc, 0.6% versus the peso, 0.4% relative to the euro and Australian dollar, 0.2% against the loonie and 0.1% vis-a-vis the yuan. The greenback edged 0.1% lower against sterling. The Republican-controlled senate approved a filibuster-proof budget that enhances prospects […] More

Central Bank Watch

Central Bank of Chile

October 19, 2017

Chilean monetary officials once again left the key interest rate at 2.5%. The last reduction in May capped four 25-basis point moves during the first five months of 2017 to the current level. The rate had been at 3.5% throughout the entirety of 2016. Officials run an inflation-stabilization monetary policy, targeting the CPI at 3.0% […] More

Central Bank Watch

Bank of Israel

October 19, 2017

Israel’s key interest rate was left at 0.1% as expected. A released statement observed continuing sub-target inflation and a recently firmer shekel. Growth is in line with its potential non-inflationary pace and also more balanced than before. Home price inflation is a lessening concern to officials. The central bank interest rate has been at 0.1% […] More

Central Bank Watch

Bank Indonesia

October 19, 2017

Indonesia’s 4.25% seven-day reverse repo rate, which had been cut by 25 basis points each at successive previous reviews in August and September, was this time left unchanged, as too were the 3.5%overnight deposit facility rate and 5.0% lending facility rate. In September, officials had indicated that the main interest rate had reached a “neutral” […] More

Central Bank Watch

Bank of Korea

October 19, 2017

Although keeping the Bank of Korea Base Rate unchanged at 1.25%, its level since a 25-basis point cut in June 2016, the vote to do so was not unanimous and an accompanying statement revised projected GDP growth and inflation slightly upward. Exports and business investment are performing well. Labor market conditions have improved. There are […] More

Uncategorized

Market Pessimism Intrudes

October 19, 2017

Yesterday’s stock market optimism swung into reverse. Data showing softer Chinese growth in 3Q hit the Hong Kong market, where the Hang Seng index fell 2.2%. The Spanish government of Prime Minister Rajoy invoked previously unused constitutional powers to revoke Catalonia’s autonomy. In response, stocks in Europe are down 2.2% in Greece, 1.3% in Italy, […] More

New Overnight Developments Abroad - Daily Update

Dollar Climbs Further

October 18, 2017

The dollar was buoyed by negative European factors (Catalonia, Brexit and a weak construction output report) and expectations of a widening U.S. interest rate premium. Yellen is generally expected not to be reappointed as Fed Chair, and that suggests a steeper incline in the federal funds target especially if U.S. tax reform is enacted. The […] More

New Overnight Developments Abroad - Daily Update

Mostly Firmer Dollar Tone

October 17, 2017

The dollar recorded overnight gains of 0.5% against the yuan, 0.4% versus sterling, 0.3% relative to the euro, 0.2% vis-a-vis the loonie, swissie, and peso, and 0.1% versus the yen and Australian dollar. The dollar edged 0.1% lower against the kiwi, in contrast. Inflation reports released today tended to be above expectations. Consumer prices in […] More

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