September Improvement of U.S. Manufacturing Exceeds Ezone’s Improvement

October 3, 2016

The U.S. manufacturing PMI reading last month of 51.5 was lower than Euroland’s score of 52.6.  It was the eleventh time in the last fourteen months that such had happened. However, the differential between the two scores was halved. After five straight readings above the 50 no change level, the U.S. Purchasing Managers Index had […] More

Global Market Turmoil Fanned by Intensifying Concern over Clinton’s Health

September 12, 2016

West Texas Intermediate crude oil dived 2.1% and is trading back below $45 at $44.94 per barrel. Gold dipped 0.4% to $1,328.60 per ounce. Japan’s Nikkei slumped 1.7%. Other stock markets around the Pacific Basin fell 3.8% in Hong Kong, 2.7% in New Zealand, 2.2% in Australia, 2.3% in South Korea, 1.9% in China, 1.7% […] More

National Bank of Serbia Leaves Policy Rate at 4.0% and Expresses More Optimism

August 11, 2016

Serbia’s central bank policy rate had been halved in nine steps between March 2015 and July 2016 from 8.0% to 4.0%. Officials saw no need to ease further at the August review. Serbian inflation, foreign rates of inflation, and domestic aggregate demand are projected to rise. Serbia is considered more immune from external shocks because of […] More

Post-Jobs Report Rally Extended

August 8, 2016

World stocks, oil, and emerging market currencies rose in further reaction to Friday’s better-than-expected U.S. jobs data that showed a 255K increase in employment last month and marginally stronger wage growth. Share prices advanced 2.4% in Japan, 1.7% in Hong Kong, 0.9% in China, 0.7% in Australia and South Korea, 0.6% in Taiwan and 1.5% […] More

Brexit on the Mind and a U.S. Birthday

July 4, 2016

On this 240th anniversary of the U.S. Declaration of Independence, U.S. markets are closed, depleting currency markets of some leadership.  The dollar is little changed against other monies like the euro, yen and sterling. Nigel Farage, head of the UKIP Leave Party, resigned, creating more confusion about Britain’s next government and when the Brexit timetable […] More

Unchanged Swiss Monetary Policy but Higher Near-Term Inflation after Quarterly Policy Review

June 16, 2016

The Swiss sight deposit rate target was left at -0.75% and the 3-month Libor target corridor was kept at -1.25% to -0.25%.  Swiss National Bank authorities also said they”will remain active in the foreign exchange market, as necessary.”  Explaining these decisions in a released statement, officials go on to say The negative interest rate and the […] More

Czech National Bank

May 5, 2016

The two-week repo rate has been at 0.05%, which Czech monetary officials consider “technical zero” since November 2012, and officials have had a policy of automatic and unlimited intervention since November 2013 to enforce an asymmetric foreign exchange rate policy to prevent appreciation in the koruna beyond CZK 27 per euro.  These settings were reaffirmed […] More

National Bank of Romania

February 6, 2016

Romania’s monetary policy rate was cut by 225 basis points in 2009, 195 bps in 2010, 25 bps in 2011, 75 bps in 2012, 125 bps each in 2013 and 2014, and 100 basis points in 2015, but the last change occurred nine months ago in May.  The rate since then as been 1.75%, and […] More

U.S.-Minus-Eurozone Service PMI Spread Negative

February 3, 2016

The U.S. non-manufacturing  purchasing managers index conducted by the Institute of Supply Management printed at 53.5 in January.  It’s a measure of activity growth in which scores of 50.0 separate expansion from contraction, and such was lower than Euroland’s service-sector PMI (53.6) in February for the first time in around two years.  The U.S. index fell […] More

FOMC Preview

December 16, 2015

The FOMC last met October 28 and and released this statement afterword.  Strong rhetorical hints have then and subsequently been made that the federal funds rate will be raised to 0.50% at today’s meeting.  The decision will be accompanied be new forecasts and followed by a press conference starting at 19:30 GMT.  The table below […] More