Foreign Exchange Insights and Next Week

Next Week: August 10 – 17, 2019

August 9, 2019

Central Banks: Monetary policy reviews in Norway and Mexico. With summer vacation scene fully upon us, very few central bank officials are scheduled to speak, Kent and Debelle of the Reserve Bank of Australia being an exception. Holidays: Japan observes Mountain Day on Monday, and Thursday is Assumption Day in several European countries. Scheduled U.S. […] More

Central Bank Watch

Central Reserve Bank of Peru

August 9, 2019

The latest central bank to cut its benchmark interest rate is the Central Reserve Bank of Peru, whose reference rate was lowered late yesterday to 2.5% from 2.75%. The statement announcing the decision cites the widely experience havoc being spread by changes in U.S. trade policies by the Trump Administration: “Global growth risks persist and […] More

New Overnight Developments Abroad - Daily Update

Sterling Weakens on Data

August 9, 2019

The dollar edged down 0.2% against the yen and kiwi, 0.3% versus the peso, and 0.1% relative to the euro, Swiss franc and Canadian dollar on this 45th anniversary of the resignation of former President Nixon. But today’s weakest major currency has been sterling, down 0.6% against the dollar in response to  news that British […] More

Central Bank Watch

Second Serbian Central Bank Rate Cut of 2019 Announced Today

August 8, 2019

The National Bank of Serbia’s Executive Board lowered the policy interest rate by 25 basis points. There had also been a reduction of that size last month. At 2.5% the rate is at a 10+ year low. But officials stressed a cautious approach in light of “global trade tensions, a possibility that monetary policy decisions […] More

Central Bank Watch

Filipino Central Bank Rate Structure Lowered by 25 Basis Points

August 8, 2019

Monetary officials skipped only one review before resuming their easing. The benchmark rate, which is the reverse repo, was cut by 25 basis points to 4.25%, and the overnight deposit and lending rates were cut to 3.75% and 4.75%, respectively. This is the second reduction in this cycle after an initial one in May. A […] More

New Overnight Developments Abroad - Daily Update

More Central Banks Cut Interest Rates, Persistent Trade Tensions, and Lower Inflation

August 8, 2019

Central bank interest rates were cut by 25 basis points today in the Philippines and  Serbia. Earlier this week, rates had been reduced by central banks in India (35 bps), Thailand (25 bps), and New Zealand (50 bps).  The common thread in these moves is the trade war unleashed by U.S. President Trump, the weaker […] More

New Overnight Developments Abroad - Daily Update

Dollar Gives Back Part of Monday’s Sharp Gain against the Yuan

August 6, 2019

The yuan yesterday had slumped to 7.0525 per dollar, its weakest level since May 2008. In response, the U.S. Treasury released a protest, labeling Beijing a “currency manipulator.” This is the first such designation since 1994. By law, the Treasury reviews the currency policies of foreign governments every six months. The most recent review was […] More

New Overnight Developments Abroad - Daily Update

Yuan Sinks to 11-Year Low and Depresses Global Stocks & Sovereign Debt Yields

August 5, 2019

It’s been a chaotic day in financial markets, with America seemingly at war on several fronts and non-manufacturing PMIs down in the U.S., Europe, Japan and China. The dollar rose 1.6% against the yuan and 1.3% relative to the peso but fell 1.7% against the euro, 1.0% relative to the Swiss franc, and 0.5% vis-a-vis […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu of Data Releases and Other Things to Note

August 2, 2019

Central Banks: Monetary policy reviews in Australia, New Zealand, Thailand, India, Serbia, Romania, Peru and the Philippines. A summary of last week’s BOJ meeting and the Reserve Bank of Australia’s quarterly Monetary Policy Statement will be published. Bullard and Evans of the Fed, Reserve Bank of Australia Governor Lowe, and ECB Governing Council member Coeure […] More

New Overnight Developments Abroad - Daily Update

Trade Tensions Trigger Stampede Out of Risk

August 2, 2019

U.S.-China trade talks do not appear to be going well, and U.S. June trade data didn’t help investor confidence that the problem may get resolved. Stock markets and sovereign debt yields tumbled around the world, as investors ran from riskier assets. Among currencies, traditional safe havens like the yen (up 0.8% against the dollar overnight) […] More

css.php