Archive for October 2020

Foreign Exchange Insights and Next Week

Next Week’s Menu: October 31 – November 6, 2020

October 30, 2020

Central Banks: Monetary policies will be reviewed at the Federal Reserve, Bank of England, Reserve Bank of Australia, Bank of Norway, Czech National Bank, National Bank of Poland, Bank of Russia, Central Bank of Malaysia, and National Bank of Romania. Fed Chairman Powell will hold a press conference. Bank of Japan meeting minutes, the Bank […] More

Deeper Analysis

October 2020 in Figures

October 30, 2020

Compared to previous recent months, net dollar movements in October were limited, exceptions being a 1.9% rise against the Australian dollar and 1.5% slide versus the yuan. Ten-year sovereign debt yields favoring the dollar became even more advantageous, and share prices declined broadly and significantly. The price of West Texas Intermediate crude oil dropped over […] More

Deeper Analysis

Which Major Economy is Withstanding the Pandemic Best?

October 30, 2020

Although these are very early days for ranking economies according to their resilience against the Covid-19 pandemic, the recent release of third-quarter GDP data for a number of countries makes a preliminary stab at that question now possible. The United States, Neither the United States nor Euroland achieved a full-V pattern, but China, Hong Kong, […] More

New Overnight Developments Abroad - Daily Update

Lots of Monthend Data, Fresh Covid Records, Disappointing Tech Earnings, and Home Stretch of the U.S. Election Campaign

October 30, 2020

Almost 600,000 new Covid cases worldwide have been identified in the past day, and the U.S. count exceeded 90,000 for the day and more than 9 million since the first case was reported. U.S. stock futures are down about 1% after several high tech firms reported weaker-than-forecast earnings for 3Q. Share prices in the Pacific […] More

Central Bank Watch

European Central Bank

October 29, 2020

The ECB Governing Council did not change policy settings, nor was a change expected by street analysts. The deposit rate has been -0.5% since September 2019, and the size of the PEPP program of pandemic support was lifted to 1.35 trillion euros last June and will remain at least through next June. Regular asset purchases […] More

Central Bank Watch

Bank of Japan

October 29, 2020

This month’s Bank of Japan Board meeting coincided with the release of its quarterly Outlook for Economic Activity and Prices. Targeted interest rates of -0.1% on overnight money rates and “around 0%” on the 10-year JGB yield since September 2016 were again not changed, nor did officials elect to modify any other policy settings, according […] More

New Overnight Developments Abroad - Daily Update

Dollar Rebound Continues While Equities Remain Exposed

October 29, 2020

There’s much to digest today: monetary policy reviews in Japan and Euroland, a first glimpse of U.S. 3Q growth, Covid lockdowns in France and Germany, and latest U.S. political developments as election campaign enters final days. The dollar strengthened overnight by another 1.4% versus the peso, 1.3% against the Australian dollar, 0.8% relative to the […] More

Larry's Blog

U.S. Election: Some Reflections

October 28, 2020

Much controversy has been stirred up ahead of the U.S. 2020 election, and the suspense is unlikely to be fully settled on Election Day, which is less than one week away. In a country known for low turnout, amplified opportunities for early voting and mail-in ballots are expected to make 2020 an exception on that […] More

Central Bank Watch

Bank of Canada Left Overnight Interest Rate Target at 0.25%

October 28, 2020

Three 50-basis point interest rate cuts to an effective floor of 0.25% were implemented by Canadian central bank officials during March, and they continue to affirm that the rate will not be raised until “economic slack is absorbed so that the 2% inflation target is sustainably achieved.” Current projections do not anticipate that happening until […] More

New Overnight Developments Abroad - Daily Update

Intensifying Pandemic and Coming U.S. Election Rattle Investor Confidence

October 28, 2020

The world has experienced another very bad 24 hours with the coronavirus. Globally reported cases have risen by almost a half million people, and and the United States suffered over a 1000 more Covid-related deaths. For America, the first wave of the epidemic never really ended, whereas Europe is clearly into a second wave, and […] More

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