Foreign Exchange Insights and Next Week

Next Week

April 13, 2018

Special Events: Semi-annual IMF/World Bank Meetings will be running throughout the week in Washington, DC. Highlights of the gathering will include publication of the World Economic Forum, a press conference on Thursday by IMF Managing Director Lagarde, and a Group of Twenty press conference on Friday. A meeting of EU finance ministers will occur on […] More

Central Bank Watch

Monetary Authority of Singapore’s Semi-Annual Policy Review

April 13, 2018

Monetary policy in Singapore is subordinated to the enforcement of a targeted exchange rate corridor. Officials do this by specifying three variables: the width of the Singapore dollar’s (SGD) prescribed trading corridor, the mid-point of the corridor, and the corridor’s upward or downward slope over time. In the face of downgraded growth and inflation prospects, […] More

New Overnight Developments Abroad - Daily Update

Continuing Uncertainty Over U.S. Trade Policy and Response to Syria

April 13, 2018

Markets mostly marked time so far this Friday, confused by President Trump’s reinterest in the Trans Pacific Partnership and ambiguous tweet regarding the U.S. response to the Syrian government’s chemical attack. Investors now await reports on first-quarter corporate earnings. The dollar was narrowly mixed overnight, firming 0.4% against the Swiss franc, 0.3% relative to the […] More

Central Bank Watch

Central Reserve Bank of Peru

April 12, 2018

Being an even-numbered calendar month, Peru’s central bank board did not change its policy interest rate in April. The last six reductions, each by 25 basis points, were made at scheduled monthly meetings in the even months of May, July, September, November, January and March. The rate is now at 2.75%, and the statement accompanying […] More

Central Bank Watch

Bank of Mexico Keeps Policy Rate at 7.5%

April 12, 2018

Mexican monetary isĀ  focused on on strengthening the anchoring of medium- and long-term inflation expectations and achieving the convergence of actual inflation on the 3.0% target. In response to the steep depreciation of the peso as candidate and then U.S. President Trump espoused an anti-Mexican agenda both in regard immigration and trade policy. The peso’s […] More

Central Bank Watch

National Bank of Ukraine Decides Policy Now Sufficiently Tight

April 12, 2018

From last October to the start of March, Ukraine’s policy interest rate was increased 450 basis points to 17.0% in just four incremental moves. That tightening abruptly reversed a prolonged easing stance, the last element of which was a 50-bp cut last May. The reason for this reversal was a rise of inflation to well […] More

Central Bank Watch

National Bank of Serbia

April 12, 2018

The latest in a multiyear series of cuts in Serbia’s key policy interest rate has reduced such to 3.0% from 3.25%. There was also a 25-basis point cut in the March monthly meeting and, before that, a 50-basis point cut last October. Previous rate cuts totaled 2.75 percentage points in the final eight months of […] More

Central Bank Watch

Bank of Korea Leaves Policy Rate Unchanged

April 12, 2018

After its monthly policy review, South Korean central bank policy board released at statement that leads with a discussion of geopolitical risks. The global financial markets have shown high levels of volatility, with government bond yields and stock prices falling in line mainly with concerns about the worsening trade relations between the US and China. […] More

New Overnight Developments Abroad - Daily Update

Better Market Tone as Still No U.S. Reprisal on Syria

April 12, 2018

Never said when an attack on Syria would take place. Could be very soon or not so soon at all. Trump’s tweeted clarification regarding Syria has dampened the perceived immediacy of a geopolitical meltdown. Stocks in response have trimmed yesterday’s losses. Euro area industrial production, which had been forecast to hold generally flat in February, […] More

Central Bank Watch

National Bank of Poland

April 11, 2018

No change was made in Polish monetary policy at the latest review. The reference interest rate has been at 1.5% since a pair of 50-basis point cuts in January and March of 2015. Prior to 2012, the reference rate had been at 4.75%. Officials foresee CPI inflation staying near its target during the forecast horizon […] More

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