Foreign Exchange Insights and Next Week
Next Week
May 24, 2019
Central Banks: Monetary policy reviews in South Korea, Sri Lanka, Canada and Hungary. Federal Reserve Vice Chairman Clarida, Bank of Japan Governor Kuroda, Reserve Bank of New Zealand Governor Orr, and Deputy Governor of the Bank of Canada Wilkins speak publicly. Holidays and Events: U.S. Memorial Day and British late spring banking holiday on Monday. […] More
New Overnight Developments Abroad - Daily Update
Theresa May Stepping Down as U.K. Prime Minister
May 24, 2019
The effective date of Prime Minister May’s resignation is June 7th. Her decision followed an emphatic parliamentary defeat on her last attempt to secure approval of a managed Brexit and EU parliamentary elections. While the exact result of how British voters cast their ballots will not be known for a while, exit polls point to […] More
New Overnight Developments Abroad - Daily Update
Pessimistic Mood in the Marketplace
May 23, 2019
A protracted U.S.-Sino trade war looks increasingly unavoidable. No light can be seen at the end of the Brexit tunnel, and paralyzing tensions between the Trump White House and Congressional Democrats keep intensifying. Although a preliminary estimate that German GDP accelerated to 0.4% last quarter, the May IFO Institute index of Germany’s business climate produced […] More
Central Bank Watch
Icelandic Central Bank Rate Cut as Growth is Slowing
May 22, 2019
The Central Bank of Iceland unexpectedly cut its seven-day term deposit rate to 4.0% from 4.5%. This reduction constitutes a double-reversal of trend. Following cuts totaling 125 basis points from May 2017 to October 2017, the central bank rate had been raised by 25 basis points just six months ago amid robust domestic growth. Today’s […] More
New Overnight Developments Abroad - Daily Update
Brexit Mess and Central Bank News
May 22, 2019
The latest Brexit proposal from British Prime Minister May was defeated heavily by a parliamentary vote of 432-202. That was a significantly bigger defeat than on her previous attempt. Sterling dropped to a four-month low of $1.2641. The ten-year British gilt yield slid six basis points to 1.02%, but the Ftse-100 avoided the slide experienced […] More
Foreign Exchange Insights and Next Week
Forex Trading in the Summertime
May 21, 2019
The calendar year in foreign exchange is more easily divided into three rather than four seasons, and the U.S. Memorial Day on the fourth Monday of May and Labor Day holiday on the first Monday of September encapsulate the middle period. This unofficial summer tends to have lighter daily volume than the other two parts […] More
New Overnight Developments Abroad - Daily Update
Equities and Dollar Mostly Firmer
May 21, 2019
Share prices in the Pacific Rim rose 1.2% in China, 0.8% in Indonesia, 0.6% in Taiwan, and 0.4% in Australia, but the Japanese Nikkei closed down 0.1%. stocks in Europe have so far risen today by 1.1% in Germany, 0.8% in the E.K. 0.7% in Italy, 0.6% in France, 0.5% in Switzerland, and 0.3% in […] More
Central Bank Watch
Israeli Policy Interest Rate Unchanged at 0.25%
May 20, 2019
Six months have now elapsed since the one and only interest rate hike of the current tightening cycle. The rate previously had been pinned at 0.10% from February 2015 to November 2018, and it remains far beneath the last cyclical high in 2010 of 3.25% in the summer of 2011. In a published statement today following […] More
New Overnight Developments Abroad - Daily Update
Two Surprises
May 20, 2019
The new week is greeting investors with two unexpected developments, one political and the other economic. The right-of-center Liberal-National coalition government of Australia was headed for defeat in parliamentary elections according to previous opinion polls but instead defeated its Labour Party opponent. Scott Morrison will remain prime minister, and he campaigned on a promise of […] More
Foreign Exchange Insights and Next Week
Next Week
May 17, 2019
Central Banks: Monetary policy reviews are scheduled in Iceland, Israel and South Africa. Minutes of prior meeting to be published by the Federal Reserve, European Central Bank and Reserve Bank of Australia. Fed officials speaking publicly next week include Chairman Powell and Barkin, Daly, Kaplan, Bostic, Bullard, Evans and Rosengren. Draghi and Praet of the […] More
