Foreign Exchange Insights and Next Week

Next Week

June 23, 2017

Holidays: For post-Ramadan celebrations, Indonesia will be closed all week, and India and Singapore are to be shut on Monday. Friday marks the end of June and second quarter. Central Banks: Monetary policy meetings in the Czech Republic and Sri Lanka. A summary of the Bank of Japan’s Board meeting in mid-June will be published. […] More

A Tale of Two Currencies: the Dollar and Sterling

June 20, 2017

The political landscapes in the United States and Great Britain underwent transforming change during the past year. In the pendulum that ranges from globalism to nationalism, each of these countries took a decisive turn away from an international orientation. Tighter control over immigration featured prominently in the U.K. decision to leave the European Union and […] More

Next Week

June 16, 2017

Central Banks: Monetary policy meetings in the Philippines, Mexico, Norway, New Zealand and Hungary. Bullard, Dudley, Mester, Kaplan, Fisher, and Evans are Fed officials who will speak publicly. So will JorTdan of the SNB and Kuroda of the BOJ. Special Event: Second runoff round of French Parliamentary election on the 18th. Japanese Data: Trade balance, […] More

Next Week

June 10, 2017

Central Banks: Monetary policy reviews are scheduled in the United States, U.K., Switzerland, Japan, Russia, South Korea and Turkey. The FOMC, which appears likely to raise the federal funds target, will also release fresh forecasts, and the meeting will be followed by a press conference presided over by Chair Janet Yellen. Special Events: Brexit talks […] More

Dollar Preeminence Among Reserve Currencies Not in Urgent Danger

June 5, 2017

In the wake of the Second World War, the dollar replaced sterling as the most widely favored reserve currency. A reserve currency has to be trusted  as a store of value, denomination for invoicing payments, and currency in which to conduct trade and do financial transactions. Governments and international organizations have great needs for reserve currencies, […] More

Next Week

June 3, 2017

Central Bank Action: Monetary policy meetings are scheduled at the European Central Bank and in India, Australia, Poland, Serbia, Peru and Ukraine. The ECB  meeting on Thursday will be held off-site in Tallinn, Estonia and followed by President Draghi’s press conference. Special Events: British parliamentary elections on Thursday will select the politicians who negotiate the […] More

G7 Leaders Summit and the Dollar

May 28, 2017

Three matters attracted keen attention at the two-day summit of Group of Seven leaders in Taormina, Sicily: international terrorism, trade, and climate change. The first priority enjoyed the most agreement going into the meeting, and a considerable portion of the six-page communique is devoted to coordinating efforts to defeating terrorism in Syria, Libya, Iraq, North […] More

Next Week

May 26, 2017

Numerous Holidays: U.S. Memorial Day and late spring bank holiday in the U.K. on Monday. Dragon Boat Festival in China (May 28-30) and Hong Kong (Tuesday). Pancasila Day in Indonesia on Thursday and Italy’s Republic Day on Friday. Central Bank Action: Policy meetings in Israel and Brazil. Release of Federal Reserve Beige Book and Bank […] More

Next Week

May 19, 2017

Central Banks: Monetary policy meetings in Canada, South Korea, South Africa, Thailand and Colombia. Publication of FOMC minutes. Bullard and Kaplan of the Federal Reserve speak publicly. So will Bank of Japan Governor Kuroda, Bank of Canada Deputy Gov. Leduc, and Reserve Bank of Australia Assistant Governor DeBelle. Holidays: Victoria Day in Canada on Monday […] More

Dollar Not Reacting Excessively to U.S. Political Instability

May 15, 2017

Not in decades has “Watergate” been so often cited in the news as a base of comparison for judging current events. Forty-five years separate the Trump Presidency from the criminal break-in to Democratic Party headquarters on June 17, 1972. This wide expanse of time is as great as Watergate was from the roaring 20s and […] More