New Overnight Developments Abroad - Daily Update

Sterling Lifted by Decision to Hold Early British Election

April 18, 2017

British Prime Minister Theresa May will reportedly announce a decision tomorrow to hold a snap parliamentary election on June 8. The previous British election was held in May 2015, and another one isn’t required until May 2020. May, who succeeded the resigning David Cameron last July, had previously been opposed to calling snap elections but […] More

New Overnight Developments Abroad - Daily Update

Important Developments on Easter Monday

April 17, 2017

A slew of markets remained closed including the U.K., Australia, New Zealand, Germany, France, Italy, Spain, Portugal, Belgium, The Netherlands, Greece, Switzerland, Hong Kong, South Africa, Sweden, Denmark, Norway, and Hungary. A Turkish referendum over the weekend has given President Erdogan sweeping additional powers. The lira appreciated initially more than 2.0% in response. North Korea’s […] More

New Overnight Developments Abroad - Daily Update

Bad Vibrations

April 14, 2017

Most markets around the world are closed for Good Friday.  Share prices in those few open markets are lower, with declines of 1.4% in Russia, 0.9% in China, 0.8% in Pakistan, 0.6% in South Korea, 1.1% in Taiwan, and 0.4% in Malaysia, Japan, and Vietnam. Dangerous geopolitics has maintained a sour mood. Russian officials now […] More

Foreign Exchange Insights and Next Week

Next Week

April 13, 2017

A lean holiday-shortened week lies ahead both from a data-release and central bank standpoint. Central Banks: Bank Indonesia holds an interest rate policy meeting on Thursday. Minutes from the last Reserve Bank of Australia meeting get released. So does the Fed Beige Book that examines regional U.S. economic trends. Eric Rosengren has a public speaking […] More

Central Bank Watch

Semi-Annual Review of Singapore’s Monetary Policy

April 13, 2017

The Monetary Authority of Singapore does not target an interest rate. Instead, monetary policy in a domestic money market sense is derivative of currency policy. The goal is a target corridor for the Singapore dollar’s trade-weighted value. Goals are made for the width of the currency band, its slope over time, and the mid-point between […] More

Central Bank Watch

Bank of Korea

April 13, 2017

South Korea’s central bank base rate was cut five times from August 2014 to June 2016 by a total of 125 basis points, halving the key interest rate to 1.25%. While modestly bumping up projected GDP growth in 2017 from 2.5% that was forecast three months ago, monetary officials still anticipate only moderate expansion and […] More

New Overnight Developments Abroad - Daily Update

Reaction to Trump Remarks Muted by Coming Holidays

April 13, 2017

President Trump gave an exclusive interview to the Wall Street Journal in which among other things he complained that the dollar was too strong, proclaimed that China is not a currency manipulator, and jaw-boned the Fed to keep interest rates low. Markets were closed today in Norway and Mexico. Good Friday observances tomorrow will shut […] More

Central Bank Watch

Full Percentage Point Reduction of the Brazilian Selic Interest Rate

April 12, 2017

The monetary policy committee at the Central Bank of Brazil, known as Copom, cut the Selic rate to 11.25% from 12.25%. This larger incremental cut after ones of 75 basis points in both January and February and 25 bps each last October and November was deemed appropriate according to a released statement. Analysts were anticipating […] More

Central Bank Watch

Bank of Canada Leaves Policy Rate at 0.5%, Projects Modest Growth and Inflation Dipping by Mid-2017

April 12, 2017

Canada’s overnight interest rate target has been 0.50% since cuts of 25 basis points engineered in January and July of 2015. While there’s no urgency to begin tightening as the Federal Reserve is doing, all consideration of a near-term cut has been removed since January due to stronger-than-anticipated growth early this year. Excess slack in the […] More

New Overnight Developments Abroad - Daily Update

Several Disinflationary Signs Around the World

April 12, 2017

Chinese consumer prices fell 0.3% on month in March and  remained below a 1% 12-month trend at 0.9%. PPI inflation settled back to a 2-month low of 7.6%. U.S. import prices posted a monthly drop (0.3%) for only the third time in the past year and a smaller on-year advance of 4.2%. Non-fuel import price […] More

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