Archive for February 2018

Deeper Analysis

February in Figures

February 28, 2018

February was unlike January. The dollar had declined across the board in the first month of 2018, but declined, except against the yen, during February. Likewise, share prices performed well in January but experienced a difficult February, including the biggest U.S. monthly drop in just over two years. Stocks were spooked by speculation that the […] More

New Overnight Developments Abroad - Daily Update

Fresh Data to Consider

February 28, 2018

In addition to yesterday’s testimony by Fed Chairman Powell, which if anything raised the odds of more than three interest rate hikes in 2018, investors today have a slew of data releases on this final day of February to consider. Thursday’s data release calendar is very heavy as well. The Pacific Rim picked up the […] More

Central Bank Watch

Powell Testimony

February 27, 2018

By law, the Federal Reserve Chair is required to testify before congressional committees (House Financial Services and Senate Banking) twice a year on the economy, monetary policy and anything else legislators might wish to ask. The so-called Humphrey-Hawkins testimony, named after the sponsors of the bill that made this requirement, is done in February and […] More

Central Bank Watch

Central Bank of Hungary

February 27, 2018

At Magyar Nemzeti Bank, the Base Rate has been at 0.90% since a 15-basis point cut in May 2016, and the overnight deposit rate has been at minus 0.15% since a 10-basis point cut in September 2017. They will remain at those levels after the latest policy review by the Monetary Council. Although real economic […] More

Central Bank Watch

Bank of Israel

February 27, 2018

Although Israel’s central bank interest rate has been only 0.10% since a 15-basis point reduction in February 2015 and a combined three percentage points of rate cuts over the prior four years, CPI inflation is currently below target and very low. According to a released statement, however, “in the past month inflation expectations increased, the […] More

Central Bank Watch

Bank of Korea

February 27, 2018

South Korea’s seven-day repo rate had been at 1.25% from June 2016 until a 25-basis point increase three months ago, which was the first hike since 2011. A unanimous vote kept the rate at 1.5% in the last meeting of Governor Lee’s 4-year term. Governors rarely serve more than one term. A statement released by […] More

New Overnight Developments Abroad - Daily Update

Softer Bond and Stock Values Ahead of Powell Testimony

February 27, 2018

Monday saw a big U.S. stock market rally, but equities overnight fell in contrast by 1.1% in China, 1.3% in Hong Kong, 0.3% in India, 0.2% in Taiwan and 0.1% in South Korea. In Europe, stocks so far have declined 1.0% in Greece, 0.5% in Switzerland, and 0.3% in Germany. A notable exception to the […] More

New Overnight Developments Abroad - Daily Update

Weaker Dollar This Monday

February 26, 2018

The U.S. and Canadian dollars fell overnight by 0.5% against the yuan, kiwi, and sterling, 0.3% relative to the euro and Australian dollar, 0.2% versus the Swiss franc and 0.1% vis-a-vis the yen. The dollar also lost ground against several emerging market currencies. It’s 0.8% softer, for instance, against the Russian ruble. February 26th happens […] More

Foreign Exchange Insights and Next Week

Next Week

February 23, 2018

Central Banks: Monetary policy reviews in South Korea, Israel, Ukraine, and Hungary. Fed Chairman Powell’s initial semi-annual Humphrey Hawkins testimony (Wednesday before the House Financial Services Committee and Thursday before the Senate Banking Committee). Fed also publishes its Beige Book of regional economic conditions. Manufacturing Purchasing Manager February Surveys: China, U.S., Japan, U.K, Euroland, Germany, […] More

New Overnight Developments Abroad - Daily Update

Mixed Market Action This Friday

February 23, 2018

The dollar fell overnight by 0.4% versus the peso, 0.3% against the yuan and sterling and 0.2% relative to the loonie but rose 0.5% against the kiwi, 0.1% versus the yen, and 0.2% vis-a-vis the euro, Swiss franc and Aussie dollar. Likewise, while Asian equities enjoyed a strong session, ones in Europe failed to retain […] More

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