Archive for December 13th, 2017

Central Bank Watch

FOMC Statement and Forecasts

December 13, 2017

The FOMC met market expectations in raising the federal funds rate by an as-expected 25 basis points to 1.25-1.50%. But the vote was 7-2, with Chicago Fed President Evans joining Minneapolis Fed President Kashkari in favoring no change in the rate. A fairly upbeat statement observes that unemployment (now 4.1%) has declined further and that […] More

Foreign Exchange Insights and Next Week

Updating a Note Posted in December 2015 on Yearend Seasonality of EUR/USD

December 13, 2017

In the early years after the United States adopted flexible dollar exchange rates in March 1973, the U.S. currency an astonishingly consistent pattern of depreciation against the mark during the second half of each December, dropping in thirteen out of fourteen years in one stretch. Like the euro now, theĀ  mark was then Europe’s predominant […] More

Central Bank Watch

Central Bank of Iceland

December 13, 2017

Iceland’s Monetary Policy Committee had implemented cuts of its seven-day term interest rate of 50 basis points in August 2016 and of 25 basis points each earlier this year in May, June and October. The collective decline of 125 basis points exactly reversed hikes during 2015, leaving the level at 4.25%. The statement released today […] More

Central Bank Watch

FOMC Preview

December 13, 2017

The Fed announcement and new macroeconomic forecast will be announced at 19:00 GMT (14:00 EST) today. Previous forecasts were published in September. The federal funds rate will almost surely get raised by 25 basis points to 1.25-1.50%, marking the fourth such move since the meeting held a year ago. Chair Yellen will preside over her […] More

New Overnight Developments Abroad - Daily Update

Dollar Slips and Stocks Rise Ahead of Last FOMC Decision of the Yellen Era

December 13, 2017

The dollar fell overnight by 0.7% against the kiwi, 0.6% versus the Aussie dollar, 0.4% relative to sterling, 0.3% vis-a-vis the yen and 0.1% against the euro, Swiss franc and loonie. Core U.S. CPI inflation in November was 0.1 percentage point less than forecast with a rise of 0.1% from October and a 1.7% 12-month […] More

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