New Overnight Developments Abroad - Daily Update

Sterling Falters but Equities Performed Better in the U.K. than Elsewhere

November 13, 2017

British Prime Minister May’s own-party support continues to erode, leaving her with only a flimsy hold on power. The pound dropped 0.8% overnight, and the 10-year gilt yield is four basis points lower. However, whereas stocks in most markets overnight fell, the Ftse shows no net change. Equities declined 300 points or 1.3% in Japan, […] More

Foreign Exchange Insights and Next Week

Next Week

November 10, 2017

Central Banks: Just a couple of monetary policy meetings, notably in Chile, Iceland, and Indonesia. However, there are many central bankers who’ll be speaking publicly such as Yellen, Evans, Harker, Williams, Bostic and Mester from the Fed. Also Bank of Japan Governor Kuroda, ECB President Draghi and Vice-President Constancio, and Bank of England Governor Carney. […] More

Central Bank Watch

Central Reserve Bank of Peru

November 10, 2017

Peru’s policy interest rate has been lowered from 3.5% to 3.25%. This action follows three earlier 25-basis point cuts this year done in May, July and September. Taken together, this one percentage point of reduction offsets four 25-basis point rate increases between September 2015 and February 2016. The reversal is possible because of an ongoing […] More

Central Bank Watch

Bank of Mexico

November 10, 2017

In ten moves from December 2015 to June of this year, Mexico’s one-day interbank interest rate was raised from a low of 3.0% to the current 7.0% at which by unanimous vote this week it will remain. A statement released after the latest review observes that inflation is running a bit more than twice the […] More

New Overnight Developments Abroad - Daily Update

Global Equities and Sovereign Debt Prices Drop Further

November 10, 2017

Share prices around the Pacific Rim declined 0.8% (or 187 points) in Japan, 0.7% in New Zealand, and 0.3% in Australia, South Korea and Indonesia. European markets are down 0.8% in Greece, 0.4% in Spain, and 0.3% in the U.K., France and Switzerland, but the German Dax and Milan exchange are unchanged. A narrowly mixed […] More

Central Bank Watch

National Bank of Serbia

November 9, 2017

Having been cut by 50 basis points at the prior meeting of the Serbian central bank executive board a month ago, officials made no further change at this time. The policy rate stays at 3.5%. There were two 25-basis point cuts made in 2016, 350 basis points of reduction in 2015, 150 bps of cuts […] More

Central Bank Watch

Bank Negara Malaysia

November 9, 2017

A statement released after this year’s last scheduled meeting of 2017 announces that the Central Bank of Malaysia’s overnight policy will stay at an accommodative 3.0% but includes a hint that a rate hike may be somewhere in the pipeline: Given the strength of the global and domestic macroeconomic conditions, the Monetary Policy Committee may […] More

Central Bank Watch

Bangko Sentral ng Pilipinas

November 9, 2017

The Filipino reverse repo rate has been at 3.0% since a pair of 25-basis point hikes in July and September of 2014. A statement released by the Monetary Board after the last review considers 3.0% to still be an appropriate level even though risks to the inflation output lie a tad to the upside. Inflation […] More

Central Bank Watch

Reserve Bank of New Zealand

November 9, 2017

CPI inflation is projected to remain near the midpoint of the target range, and longer-term inflation expectations are well anchored at 2 percent. Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to adjust accordingly. So concludes a statement from Governor Spencer after the Official Cash Rate was […] More

New Overnight Developments Abroad - Daily Update

A Rebound in Sovereign Bond Yields but Softer Stocks and Dollar

November 9, 2017

The dollar fell 0.5% overnight against the yen, 0.3% versus the euro and Swiss franc and 0.1% relative to the loonie. The Australian dollar and sterling are unchanged, and the kiwi, yuan and peso dipped 0.1%. Share prices eased 0.7% in Taiwan, 0.3% in New Zealand and 0.2% in Japan. Equity losses today in Europe […] More

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