Central Bank Watch
Russian Central Bank Interest Rate Cut as Expected
July 24, 2020
With a warning that “in the context of prevailing disinflationary factors, there is a risk that in 2021 inflation might deviate downwards from the 4% target,” officials at the Central Bank of the Russian Federation enacted their fourth one-week repo rate cut of 2020 to 4.25%. Together with reductions of 25 basis points in February, […] More
New Overnight Developments Abroad - Daily Update
Confidence Hit by Concerns Over China, Coronavirus, and Economic Outlook
July 24, 2020
The last thing the world needs in the middle of a recession is an escalation of Sino-U.S. trade and foreign policy strains, but that became an even likelier prospect as Beijing officials closed down the U.S. consulate in Chengdu. The day’s coronavirus data have been again alarming, although not quite to the extent of the […] More
Central Bank Watch
By 3-2 Vote, South African Central Bank Officials Cut Repo Rate by 25 Basis Points
July 23, 2020
The fifth cut of the South African Reserve Bank repo rate this year brings the total drop of 2020 to 300 basis points. A released statement expects one more 25-bp reduction to be made around the final quarter of the year. The projected contraction of real GDP was revised a touch higher to 7.3%. “economic […] More
New Overnight Developments Abroad - Daily Update
Continuing Dichotomy Between Equities and Covid Spread
July 23, 2020
In the past 24 hours, the number of identified Covid-19 infections soared by 284,408 worldwide and 10,738 in the United States, and the number of associated deaths totaled 72,575 and 1,234. All four changes were greater than in the previous 24-hour period. Japanese markets are closed today and tomorrow for Marine Day and Sports Day, […] More
New Overnight Developments Abroad - Daily Update
Escalation of U.S.-Sino Tensions Weighs on Dollar and Equities but Lifts Price of Gold
July 22, 2020
Gold climbed another 0.8% to within 3.1% of its all time peak of $1,917.90 per ounce, hit during the summer of 2011. The dollar slipped 0.4% against the euro, kiwi and Australian dollar and by 0.1% versus the Swiss franc and loonie. Equity markets in the Pacific Rim lost 2.3% in Hong Kong, 1.3% in […] More
Larry's Blog
Masks, Phones, Freedom and Public Safety
July 21, 2020
The politicization of protective masks that cover one’s mouth and nose has been a strange and unexpected impediment against successfully managing the coronavirus pandemic. All but the best-made masks do not provide full protection against catching Covid, but wearing one has been shown to greatly prevent symptomatic and asymptomatic carriers of the pathogen from infecting […] More
Central Bank Watch
Hungary’s Central Bank Interest Rate Cut 15 Basis Points to 0.60%
July 21, 2020
Officials on the Monetary Council of Magyar Nemzeti Bank reduced the central bank base rate from 0.75% to 0.60%. The rate had been also cut by 15 basis points at the June policy review after having held at 0.90% since a reduction in May 2016. In a released statement, officials note that Hungary’s economy was […] More
New Overnight Developments Abroad - Daily Update
Equities Buoyed by Promising Vaccine News and Expansive Macroeconomic Developments
July 21, 2020
Reports have surfaced of promising results in early Covid-19 vaccine trials involving three different projects — those of Oxford, Pfiser, and BioNTech. Global cases advanced another 210k over the past 24 hours, but there was a smaller number of U.S.-reported deaths (554). Leaders of the European Union compromised on a EUR 750 billion joint pandemic […] More
New Overnight Developments Abroad - Daily Update
A Relatively Steady Dollar This Monday
July 20, 2020
This will be a light week from a data release standpoint, but many other factors are vying for investor attention as the period commenced. European Union leaders are in their fourth day of talks to find common ground on shared fiscal support against the Covid-19 recession. The U.S. congress returns from two weeks of recess […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: July 18-24, 2020
July 17, 2020
Central Banks: Monetary policy reviews in Turkey, Ukraine, South Africa, China and Russia. Minutes to be published of last policy meetings at the Bank of Japan and Reserve Bank of Australia. RBA Governor Lowe speaks publicly. Holidays and Events: Belgium’s National Day holiday on Tuesday. Japan observes Marine Day on Thursday and Sports Day on […] More
