Foreign Exchange Insights and Next Week

Next Week

February 10, 2017

Central Banks: Federal Reserve Chair Yellen delivers her semi-annual Humphrey Hawkins testimony on the economy and monetary policy to the Senate Banking Committee on Tuesday and the House Financial Services Committee on Wednesday. Fed District Presidents Lacker, Rosengren, Lockhart, Kaplan, and Harker speak publicly as well during the week. Chile, Indonesia, Sweden and Romania have […] More

Intervention Not the Only Way to Secure a Weaker Dollar

February 6, 2017

A previous blog post on this site discussed how U.S. currency market intervention might get dragged out of the forgotten monetary tools closet as a way to depreciate the dollar by the new Trump administration. Both the president and his key adviser on trade have called the dollar overvalued. The dollar has strengthened broadly since the U.S. […] More

Next Week

January 27, 2017

Central Banks: The first of eight scheduled FOMC meetings is on Tuesday and Wednesday and will not be associated with a published Summary of Economic Projections or a press conference by Chair Yellen. A policy meeting at the Bank of Japan on Monday-Tuesday will be associated with a released “Outlook” including revised macroeconomic forecast and a […] More

Is a Revival of U.S. Currency Market Intervention Coming?

January 26, 2017

I suspect it is. Foreign exchange intervention used to be a key tool of monetary policy, wherein countries buy or sell their own currency in the marketplace against a different widely traded currency. As such, FX operations are like the open market operations used to guide banking reserves and domestic monetary policy, but there’s a […] More

Next Week

January 20, 2017

Holidays: On Thursday India Republic Day and Australia Day. Chinese New Year begins late Friday, affecting China, Singapore, Hong Kong and South Korea. Central Banks: Monetary Policies in South Africa, Israel, Ukraine, Hungary and Turkey. ECB President Draghi and Reserve Bank of New Zealand Governor Wheeler speak publicly. Scheduled U.S. Statistical Releases: GDP, durable goods […] More

The Dollar in Years When a New President Is Inaugurated

January 17, 2017

In February 1973, the second dollar devaluation in 14 months failed to stem heavy speculative downward pressure on the U.S. currency. Just a couple of weeks later, fixed exchange rates imposed by rigidly automatic central bank intervention were ended against the currencies of other advanced economies. A new system of floating exchange rates was born, […] More

Next Week

January 13, 2017

Holidays and Special Events: On Monday, Martin Luther King’s Birthday in the United States. Tuesday-Friday World Economic Forum in Davos, Switzerland. Inaugural of Trump/Pence on Friday. Central Banks: Interest rate policy meetings in Canada, Euroland, Malaysia, Chile, Turkey and Indonesia. Yellen, Dudley and Harker of the Fed speak publicly. ECB President Draghi and Bank of […] More

2017 Fact Sheet

January 9, 2017

Dollar High/Low Trading Ranges in 2016 versus 2015 ranges in (). $1.0352 to $1.1616 per euro   ($1.0459 – 1.2108) 121.11 to 99.01 yen per dollar   (125.86 – 115.86) $1.1807 to $1.5019 per pound sterling   ($1.4566 – 1.5930) 1.0343 to 0.9445 Swiss francs per dollar   (1.0328 – 0.7424) 1.4690 to 1.2462 Canadian […] More

Next Week

January 6, 2017

Japanese Holiday Closure: Coming of Age Day on Monday. Central Banks: Brazil, Poland, South Korea, Indonesia, and Serbia have scheduled monetary policy meetings. The ECB Account of its last council meeting gets published. Harker, Yellen, Evans, Lockhart, and Rosengren of the Fed speak publicly. Scheduled U.S. Economic Data Releases: Retail sales, import prices, producer prices, […] More

Next Week

December 30, 2016

Holiday Closures: No holiday is more widely shared than New Years Day. Since such fall on a Sunday in 2017, most markets will be shut on Monday. New Zealand and Japan well remain closed Tuesday, and Japan’s markets will observe only a half day on Wednesday. Some markets like Spain and Italy will be observing […] More