Foreign Exchange Insights and Next Week

Next Week

April 6, 2018

Central Banks: Policy meetings in Poland, Ukraine, South Korea, Serbia, Peru and Mexico. Policy meeting minutes to be released by European Central Bank and the Federal Open Market Committee. Chicago Federal Reserve President Evans, Reserve Bank of Australia Governor Lowe, and Bank of England Governor Carney speak publicly. Scheduled U.S. Economic Statistical Releases: Consumer prices, […] More

Next Week

March 30, 2018

Holiday Closures: Many markets will remain shut on Easter Monday such as France, Italy, Germany, the U.K., Spain, Switzerland, New Zealand, Australia, and Hong Kong. The Ching Ming Festival will be celebrated Thursday in Hong Kong and Thursday and Friday in China. South Africa’s Family Day is on Monday. Purchasing Manager Surveys: Multiple PMIs will […] More

Next Week

March 23, 2018

Holiday-Shortened Week: The Good Friday/Easter break will deprive trading from full-cylinder power in the latter half of next week. Markets closures on Friday include Great Britain, the United States, India, Germany, Switzerland, Spain, South Africa, Norway, Singapore, New Zealand, Mexico, Indonesia, Hong Kong, France, Italy, Canada, Brazil and Australia. Many markets will remain shut on […] More

U.S. Balance of Payments and the Dollar

March 21, 2018

The dollar did not perform as weakly in the fourth quarter as it did earlier in 2017. Between end-2016 and end-2017, the U.S. currency lost 12.3% against the euro, 8.7% relative to the pound, 7.6% versus the Aussie dollar, 6.5% versus the loonie, 6.3% vis-a-vis the yuan, 4.3% against the Swiss franc, and 2.0% versus […] More

Next Week

March 16, 2018

Central Banks: A scheduled FOMC meeting dominates the coming week. Newly minted Chairman Powell will preside over his first post-meeting press conference, and a 25-basis point interest rate hike is widely expected. The Fed’s forecasts will be updated. Monetary policy meetings are also occurring in Russia, The U.K., Brazil, Chile, Colombia, New Zealand, Taiwan, The […] More

Circumstantial Evidence Suggests Trump Wants Dollar to Weaken

March 14, 2018

As private citizen, presidential candidate, and president of the United States, Donald Trump has embraced the usefulness of commercial protectionism, that is the imposition of tariffs and other barriers to benefit strategic industries deemed at risk because of unfair foreign competition. He’s unafraid of trade wars and believes that America would win such disputes. Victory […] More

Next Week

March 10, 2018

Special Events: Meeting of EU finance ministers on Thursday. U.S. moves clocks forward one hour tonight, which will temporarily reduce the time difference between N.Y. and London to four hours, N.Y. and Frankfurt to five hours, and N.Y. and Tokyo to 13 hours. The British Chancellor of the Exchequer releases the spring forecast statement on […] More

Next Week

March 4, 2018

Special Events: Italian parliamentary election on March 4th and announced details of U.S. tariffs. Central Banks: Monetary policy meetings scheduled in Australia, Japan, Canada, Euroland, Malaysia, Turkey, Peru, Serbia, Romania, and Poland. The Fed Beige Book of regional conditions will be published, and Dudley, Rosengren, Bostic, Kaplan, and Quarles will be speaking publicly. So will […] More

Known Unknowns

March 1, 2018

When you think about the number of meaningful changes with imprecise consequences, it’s no wonder that world financial markets are more volatile in 2018 and why investors remain very jittery. Four of the changes involve U.S. economic policies. The earliest to be undertaken was broad government deregulation including but not limited to the activities of […] More

Next Week

February 23, 2018

Central Banks: Monetary policy reviews in South Korea, Israel, Ukraine, and Hungary. Fed Chairman Powell’s initial semi-annual Humphrey Hawkins testimony (Wednesday before the House Financial Services Committee and Thursday before the Senate Banking Committee). Fed also publishes its Beige Book of regional economic conditions. Manufacturing Purchasing Manager February Surveys: China, U.S., Japan, U.K, Euroland, Germany, […] More