Archive for November 2017

New Overnight Developments Abroad - Daily Update

Euro See-Saws After German Coalition Talks Break Down

November 20, 2017

In Germany’s national parliamentary election on September 24, the center-right Christian Democratic Party of Chancellor Angela Merkel won it smallest share of the vote since 1949, but its center-left grand coalition partner, the Social Democratic Party, also suffered big losses and got its smallest voter share since the Second World War. The SDP had ruled […] More

Foreign Exchange Insights and Next Week

Next Week

November 17, 2017

Central Banks: There are monetary policy meetings in South Africa, Hungary and Colombia. Meetings of recent meetings will be released at the Fed, ECB and Reserve Bank of Australia. Fed Chair Yellen delivers a speech as do ECB President Draghi, Swiss National Bank Jordan and RBA Governor Lowe. Holidays: Revolution Day in Mexico and Black […] More

New Overnight Developments Abroad - Daily Update

Concerns Return to Market

November 17, 2017

Questions have resurfaced about the strength of China’s economy. Retail sales, industrial production, and business investment posted slower on-year gains in October, and the People’s Bank of China has injected heavy amounts of liquidity to the banking system via reverse repurchase agreements. The Mueller probe into Russian influence in the 2016 U.S. elections appears to […] More

Central Bank Watch

No Change Made in Indonesian Monetary Policy

November 16, 2017

Board officials at this month’s policy meeting left interest rates unchanged. A 4.25% one-week reverse repo rate is flanked y a 3.5% overnight deposit rate and a 5.0% lending rate. After cutting the repo rate by 25 bps each in back-to-back August and September meetings, officials felt the level represents a “neutral” stance, and today’s […] More

New Overnight Developments Abroad - Daily Update

A Better Market Tone

November 16, 2017

There’s been a respite from the recent slide of equities. Japan’s Nikkei closed 1.5% higher, and the German Dax and Paris Cac are up 0.5% and 0.6%. The dollar shows mixed overnight changes, with drops of 0.6% against the Swissie, 0.2% relative to the peso and sterling and 0.1% versus the loonie but upticks of […] More

Central Bank Watch

Central Bank of Iceland

November 15, 2017

Iceland’s seven-day term rate had been cut 25 basis points last month and earlier by 50 basis points in August 2016 and 25 bps each in May and June of this year. But a statement released after the latest review believes that the interest rate of 4.25% is appropriate for now. “The current monetary stance […] More

Central Bank Watch

Central Bank of Chile: Board Leaves Policy Unchanged

November 15, 2017

Chile’s monetary policy rate had been reduced by 25 basis points four times during the first five months of 2017 to the current level of 2.5%. That’s higher than the present on-year CPI inflation rate of 1.9% but below the center of the medium-term 2-4% CPI target. In a statement after the latest Board meeting, […] More

New Overnight Developments Abroad - Daily Update

Dollar and Stocks Continue to Slide

November 15, 2017

Dollar losses overnight amounted to 0.7% against the yen, 0.5% versus the euro, 0.4% vis-a-vis the Swiss franc and kiwi, 0.3% relative to the yuan, 0.2% against the peso and 0.1% versus sterling. The yen touched a 4-week high, and the euro moved back above its January 1999 starting level. Ten-year sovereign debt yields are […] More

New Overnight Developments Abroad - Daily Update

Dollar, Pound and Most Equities Falter as a Ton of Economic Data Got Released

November 14, 2017

The dollar rose 0.7% against sterling while posting losses overnight of 0.7% against the euro, 0.4% versus the Swiss franc, 0.2% vis-a-vis the Australian dollar, and 0.1% relative to the yen, loonie, peso and yuan. The kiwi fell 0.5%. Share prices declined 0.9% in Australia, 0.6% in Indonesia, Singapore and Hong Kong, and 0.5% in […] More

Foreign Exchange Insights and Next Week

Dollar Performance When Big U.S. Tax Cuts Are Undertaken

November 13, 2017

It remains unclear whether President Trump will get a tax cut law to sign by the end of this year or even in 2018. Both the Republican-controlled congress and he want to get this done, but the devil is in the details. If this legislation indeed happens, it will undoubtedly be large in scale like […] More

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