New Overnight Developments Abroad - Daily Update

ECB Left Policy Unchanged, and Now Investors Await FOMC Minutes

April 10, 2019

At noontime in NY, the dollar was trading at Tuesday’s closing level against the euro and loonie but had drifted lower by 0.4% against the Australian dollar, 0.3% relative to sterling, and 0.2% vis-a-vis the yen and kiwi. The dollar is down more sharply against the peso but up 0.2% versus the Swiss franc and […] More

Deeper Analysis

Comment on Inflation

April 9, 2019

The current U.S. economic upswing is just three months short of setting a new record for longevity, and yet inflation remains stubbornly below the Federal Reserve’s target. Just as it proved frustratingly hard to lower inflation sustainably during the last third of the twentieth century, policymakers in the United States, Japan, and Europe have grappled […] More

New Overnight Developments Abroad - Daily Update

Brexit and Tariff Man Leading the Overnight News

April 9, 2019

A decision is needed tomorrow on whether and how long to grant Britain another extension on Brexit talks. In the meantime, Prime Minister May today will be holding talks with her German and French counterparts. She wants a short extension to June 30th but seems no closer to forging a parliamentary coalition behind any plan. […] More

New Overnight Developments Abroad - Daily Update

Quiet Start to Week in Financial Markets

April 8, 2019

The dollar is unchanged from Friday closing levels against the Swiss franc, Australian dollar, Chinese yuan and Mexican peso. The U.S. currency has slipped 0.2% against the yen and sterling and has edged down 0.1% relative to the euro and Canadian dollar. Ten-year U.S. Treasury, British gilt and German bund yields are unchanged, while the […] More

Foreign Exchange Insights and Next Week

Next Week

April 5, 2019

Central Banks: The European Central Bank heads a list of scheduled central banks that will be reviewing monetary policy next week. Serbia, Peru and Israel are also on that list. Minutes from the FOMC meeting in March will be published. Mersch and Draghi of the ECB, DeBelle of the Reserve Bank of Australia, Fed Vice […] More

New Overnight Developments Abroad - Daily Update

Jobs Day in America

April 5, 2019

The dollar marked time overnight as investors await today’s release of U.S. March labor market data. The dollar slipped 0.2% against the euro but moved even less on balance against other key currencies. The price of gold, $1,294.10 per ounce, also is unchanged from Thursday’s close. U.S. employment growth in the prior two months was […] More

Central Bank Watch

Back-to-Back Central Bank Rate Cuts in India Reverse Last Year’s Increases

April 4, 2019

Officials at the Reserve Bank of India cut its repo rate and reverse repo rate each by 25 basis points to 6.0% and 5.75%, respectively. The cuts were decided by a 4-2 voting margin, with two dissents favoring no change. Reductions of 25 basis points had also been implemented after the prior policy review in […] More

New Overnight Developments Abroad - Daily Update

A Dive in German Factory Orders, A Cut in Indian Interest Rates, and Still No Resolution on Brexit

April 4, 2019

German factory orders, which had been expected to edge marginally higher, instead plunged 4.2% in February following a 2.1% drop in January that left the combined January-February average 3.7% lower than the 4Q mean and February’s level 8.4% below a year earlier. Export orders sank 6.0% and domestic demand for capital goods, a leading indicator […] More

New Overnight Developments Abroad - Daily Update

Dollar Eased but Share Prices and Sovereign Debt Yields Rose Overnight

April 3, 2019

The dollar slipped 0.4% against the euro and 0.2% relative to the yen, loonie, yuan, and Swiss franc. Larger dollar drops of 0.8% and 0.6% occurred versus the Australian and New Zealand dollars, and a 0.1% uptick happened versus the yen. Share prices in the Pacific Rim strengthened 1.2% in China, Hong Kong and South […] More

New Overnight Developments Abroad - Daily Update

U.K. in Greater Danger of a No Deal Brexit

April 2, 2019

The British House of Commons still cannot find sufficient agreement on the terms of withdrawing from the EU. Faced with binary scenarios of withdrawal without a deal or a lengthy delay in leaving, the first option is looking more and more likely. The 10-year British gilt yield dropped five basis points in response overnight, but […] More

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