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
Foreign Exchange Insights and Next Week
Dollar Determinants to Watch
October 16, 2017
Dollar/yen has been a more stable relationship in 2017 than the EUR/USD pair. Monthly averages of the yen from February through September were confined within a three percentage point band with a dollar high of 113.04 in March and a low of 109.77 in August. The mean so far this month likes within that range […] More
