Foreign Exchange Insights and Next Week

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

Next Week

May 11, 2017

Central Banks: Policy meetings are scheduled next week in Indonesia, Iceland, Chile, Mexico and Poland. The Reserve Bank of Australia and European Central Bank release minutes from their last meeting. Bullard and Mester are two of the Fed officials speaking publicly. Holiday: Constitution Day in Norway on May 17. U.S. Releases: Industrial production, capacity usage, housing […] More

Next Week

May 5, 2017

Central Banks: Interest rate policy meetings in New Zealand, the U.K., Malaysia, The Philippines, Sri Lanka, Poland, and Peru. Several Fed officials to speak publicly including Bullard, Williams, Rosengren, Kaplan, Dudley, Evans, and Mester. Governor Kuroda and Harada of the BOJ speak publicly, and so will ECB President Draghi. Holidays: VE Day in France on […] More

Time Going By

May 2, 2017

A great hullabaloo was made as the 100th day of the Trump presidency approached, and now that it has passed, we’re left to wonder what that arbitrary milestone really signified. Perhaps a more significant milestone is six days away, namely that a half-year will then have elapsed since the 45th president of the United States […] More

Next Week

April 28, 2017

Holidays: Many markets will be closed Monday in observances celebrating workers, includin China, Germany, Italy, Spain, Norway, Hong Kong, Singapore, Mexico, Switzerland, South Africa, Brazil, South Korea, Greece and Portugal. Great Britain is shut also on Monday for the early May bank holiday. Japan’s market opens only for Monday and Tuesday. The so-called Golden Week […] More