Archive for November 2018

New Overnight Developments Abroad - Daily Update

Intensifying Market Pessimism

November 20, 2018

Equities are taking a beating around the world, with losses exceeding 1.0% in Europe, Japan, and the United States. WTI crude oil is down 2.9%, and the value of crypto currencies is crumbling. The dollar is generally firmer in this flight to safety. Ten-year U.S. treasury and German bund yields have edged lower. British gilt […] More

New Overnight Developments Abroad - Daily Update

Softer Equities and No Trade Deal Yet

November 19, 2018

Stocks have begun another week on a downbeat. The DOW is off slightly more than 1.0%. Share prices fell 0.6% in Germany, France and Australia but firmed 0.7% in Japan. The dollar is softer, too, with losses of 0.4% versus the euro, 0.3% vis-a-vis the yen and sterling, and 0.2% against the Canadian dollar. However, […] More

Foreign Exchange Insights and Next Week

Next Week

November 16, 2018

Central Banks: Monetary policy reviews will occur in Hungary and South Africa. Minutes from the last policy meetings will be released by the European Central Bank and Reserve Bank of Australia. RBA Governor Lowe, BOJ Governor Kuroda, and NY Fed President Williams speak publicly. Holidays and Special Events: Indonesia celebrates the birthday of Muhammed on […] More

Central Bank Watch

Bank of Mexico Tightens to Contain Inflation

November 16, 2018

The Bank of Mexico raised the overnight interbank rate by another 25 basis points, citing significant peso depreciation since the last policy review, concerns regarding the incoming administration’s policy intentions, above target inflation, indications of higher expected inflation, recent downgrades by some ratings agencies of Mexico’s debt rating outlook, and likely future increases in global […] More

New Overnight Developments Abroad - Daily Update

Mixed Dollar

November 16, 2018

The exit of British officials protesting the Brexit deal terms did not snowball, and Prime Minister May remains in power for now. Sterling rebounded 0.3% against the dollar and euro. The Ftse has lost 0.3%, and the 10-year British gilt yield climbed four basis points. The dollar also fell 0.3% against the yen and 0.1% […] More

Central Bank Watch

A Fifth Straight Filipino Central Bank Interest Rate Hike

November 15, 2018

A desire to counter perceived upside inflation risks such as┬áthe rice tariffication bill, the suspension of the oil excise tax, wage pressures, and elevated inflation expectations justified a further hike of Bangko Sentral ng Pilipinas’ overnight reverse repo rate to 4.75% from 4.5%, according to a released central bank statement. Officials also felt obliged to […] More

Central Bank Watch

Bank Indonesia Tightens Stance Further

November 15, 2018

The Indonesian central bank board of governors announced several changes: The 7-day reverse repo rate, deposit facility rate, and lending facility rate were hiked 25 basis points to 6.0%, 5.25%, and 6.75%. The key reverse repo rate has been lifted 7 times since mid-May for a total of 2 percentage points. Reserve requirements were also […] More

New Overnight Developments Abroad - Daily Update

Down Goes the British Pound

November 15, 2018

With British Prime Minister Theresa May facing a vote of no confidence and several of her cabinet ministers resigning in protest against her Brexit deal, sterling slumped 1.5% overnight against both the dollar and euro. Weak British retail sales data were also released today, showing an unexpected 0.5% on-month drop in total sales (+2.2% on […] More

New Overnight Developments Abroad - Daily Update

Japanese GDP Contracted in 3Q, while Eurozone Growth Slowed in Half

November 14, 2018

Data released this Wednesday confirmed a widening gap between economic growth in the United States on the one hand (3.5% at a seasonally adjusted annualized rate SAAR last quarter) and Japan and Euroland on the other. Japanese real GDP contracted 0.3%, or 1.2% SAAR in 3Q. Personal consumption (-0.5% SAAR), public sector expenditures (-0.9%), and […] More

Foreign Exchange Insights and Next Week

Foreign Exchange Heading into the Home Stretch Leg of 2018 Trading

November 13, 2018

The day after tomorrow will complete the 7th eighth of this calendar year. Unlike 2017, the dollar has performed well in 2018 and figures to retail resilience in the home stretch, notwithstanding an historical tendency to fade more often than not in late December. Factors that have buoyed the dollar remain in place. Three increases […] More

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