New Overnight Developments Abroad - Daily Update
Month-End Flood of Data Paints May 2020 as Anything But Merry
May 29, 2020
During May, roughly 2.69 new cases of Covid-19 were identified worldwide, and over 133,000 died from the disease. The U.S. share of the total 362,829 identified deaths related to the pandemic remains at 28.5% even though the United States has just 4.3% of the world’s population. The racial protests in Minneapolis have spread to other […] More
Central Bank Watch
South Korean Central Bank Rate Cut after Big Downward Growth Forecast Revision
May 28, 2020
Another central bank interest rate cut was announced today, this time by the Bank of Korea, where by a unanimous decision the 7-day repo rate was lowered 25 basis points to 0.50%. This was the second cut of 2020 following a 50-basis point reduction back in March. The 0.50% level represents what officials have considered […] More
New Overnight Developments Abroad - Daily Update
U.S.-Sino Tensions Mount but Dollar Steady and Equities Mostly Higher
May 28, 2020
The Chinese National People’s Congress passed the proposed Hong Kong security bill, disregarding President Trump’s warnings against doing that. Secretary State Pompeo said America will no longer consider the former British colony as autonomous, and the Trump Administration is mulling a range of sanctions against Beijing and had its call for a special UN Security […] More
New Overnight Developments Abroad - Daily Update
Reopening Fuels Optimism But Escalating U.S./Chinese Political Tensions Introduce Caution
May 27, 2020
Movements overnight in the dollar were mixed, with gains of 0.3% against the yuan, 0.4% relative to the Swiss franc, and 0.1% versus the yen but declines of 0.5% relative to the kiwi, 0.4% versus the euro, 0.3% against the loonie and Australian dollar and 0.1% relative to the peso. European stock markets advanced in […] More
New Overnight Developments Abroad - Daily Update
Broadly Softer Dollar amid More Hopeful Investor Mood
May 26, 2020
The evolution of the Covid-19 pandemic remains highly uncertain, but investors have chosen hope over fear at least for a day or so. Economies are being reopened at varying speeds, and there has been some encouraging news regarding vaccine development. Released economic data have confirmed improvement in many cases, meaning a slower implosion rather than […] More
New Overnight Developments Abroad - Daily Update
Holiday Closures Hit Pause Button
May 25, 2020
Markets on Monday lacked direction due to holiday observances in the United States for Memorial Day, Great Britain for its late Spring bank holiday, and many Islamic countries where Ramadan’s end is being celebrated. The dollar is unchanged from Friday’s close against the euro, Swiss franc, loonie and kiwi, while changes versus the yen, sterling, […] More
Deeper Analysis
GDP Contractions and Covid-19 Deaths
May 24, 2020
Not even a half year has passed since the earliest reports of a new and lethal illness in Wuhan China. The Covid-19 pandemic has been the biggest global news story of 2020 and very possibly will be in the spotlight for a good deal longer. First-quarter real GDP growth estimates have recently been reported in […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: May 23 – 29, 2020
May 22, 2020
Central Banks: Monetary policy meetings in South Korea, Hungary, Poland and Israel. Federal Reserve publishes Beige Book of regional economic conditions. Bank of Canada Governor Poloz speaks publicly. Holidays: U.S. Memorial Day and late spring British Bank holiday on Monday. Some Islamic countries to observe end of Ramadan. Scheduled U.S. Economic Statistical Releases: Quarterly GDP […] More
Central Bank Watch
40-Basis Point Indian Central Bank Interest Rate Cut on Top of March’s 75-Basis Point Reduction
May 22, 2020
The Reserve Bank of India Monetary Policy Committee also held an emergency policy review ahead of the regularly scheduled one previously set for early June. The Committee announced a 40-basis point reduction of its repo rate to 4.0%, which follows a previous 75 basis point cut in late March. Officials released a statement enumerating a […] More
Central Bank Watch
Bank of Japan Board Holds Emergency Session
May 22, 2020
The Bank of Japan held an emergency unscheduled policy Board meeting that lasted just under an hour and did not change the the short-term policy interest rate of -0.1% or the 10-year JGB yield target of around zero percent. However, officials did unveil a new lending facility for small to mid-sized firms and moved out […] More
