Central Bank Watch

Overnight Filipino Reverse Repo Rate Left at 3.0%

August 10, 2017

The key interest rate at Bangko Sentral ng Pilipinas has been at 3.0% since June 2016 and will stay at that level after the Bank Board’s latest review. The decision is explained in a statement that defines the inflation environment as still “manageable.” Although inflation has recently risen somewhat and despite acknowledging price risks tilted […] More

New Overnight Developments Abroad - Daily Update

Risk Off Investor Mood

August 10, 2017

Gold has inched closer to $1,300 per ounce, climbing 1.0% overnight to $1,292.60 per ounce. The dollar fell another 0.6% against the yen, touching an 8-week low against that currency. The dollar also dropped 0.4% relative to the yuan but booked marginal gains versus the euro, Swissy, loonie, and Aussie dollars. A bigger advance was […] More

Central Bank Watch

Reserve Bank of New Zealand Retains 1.75% Official Cash Rate as Expected

August 9, 2017

The last of seven straight 25-basis point interest rate cuts was implemented eight months. This cycle began in June 2015 after nearly a year in which the official cash rate crested at 3.5%. A released statement, like the one before released in June, suggests the policy bias in the short term leans toward further ease. […] More

New Overnight Developments Abroad - Daily Update

U.S./North Korean Tensions Lift the Swiss franc, Yen, Yuan and Gold

August 9, 2017

President Trump’s warning to North Korea of fire and fury has captured market attention. The dollar fell 0.8% against the franc, 0.5% versus the Chinese yuan, 0.3% relative to the yen, and 1.2% against gold. Sovereign debt is in demand, meanwhile, with 10-year yields down 4 basis points in the United States and France, six […] More

New Overnight Developments Abroad - Daily Update

Chinese, Japanese and German Trade Figures Reported Plus Several Second Tier Other Releases

August 8, 2017

China’s $46.74 billion trade surplus in July was the widest since $51.35 billion last January. Japan recorded a JPY 935 billion current account surplus in June, 4.3% less than a year earlier, the the seasonally adjusted surplus rose 8.7% on month to JPY 1.523 trillion. The settlements trade surplus was 32% smaller than a year […] More

Foreign Exchange Insights and Next Week

Ten Years after the Onset of the Financial Crisis

August 7, 2017

The initial tremors of the financial crisis that triggered the Great Recession were felt ten years ago this week. The dollar is 56% and 17% stronger now than then against sterling and the euro but 18.6% and 7.6% weaker relative to the Swiss franc and yen. The dollar has also appreciated versus commodity-sensitive currencies such […] More

New Overnight Developments Abroad - Daily Update

Monday Rundown

August 7, 2017

Comparatively small changes can be seen so far in U.S. and European stocks. Likewise, the dollar shows a dip of 0.1% against the yuan and resilient euro but gains of 0.3% versus the loonie, 0.2% against the Australian dollar and 0.1% relative to the yen, Swissie, and sterling. Bigger dollar advances of 0.7% against the […] More

Foreign Exchange Insights and Next Week

Next Week

August 4, 2017

Central Banks: Monetary policy meetings are scheduled in New Zealand, The Philippines, Mexico, Peru and Serbia. Kashkari, Dudley and Kaplan are some of the Fed officials speaking publicly. So will Reserve Bank of Australia GovernorLowe and Reserve Bank of New Zealand Governor Wheeler. Holidays: A Civic Holiday Monday in Canada. Women’s Day in South Africa […] More

Central Bank Watch

National Bank of Romania

August 4, 2017

NBR Board members agreed to leave Romania’s 1.75% key interest rate unchanged and released a statement that updated macroeconomic forecasts, observed new uncertainties, noted that inflation had risen in June but, at 0.85%, remained below the 2.5% medium-term target, and reiterated confidence that inflation will trend toward that objective. ┬áThe new scenario of the projection […] More

New Overnight Developments Abroad - Daily Update

Dollar and Treasury Yields Lifted by U.S. Jobs Report

August 4, 2017

The dollar rebounded sharply, advancing 1.0% against the euro, 0.8% relative to the yen and sterling, 0.7% versus the loonie, 0.6% vis-a-vis the Australian dollar, 0.5% against the Swiss franc and kiwi, 0.3% versus the peso and 0.2% relative to the yuan. The 10-year Treasury yield climbed six basis points to 2.28% and exerted coattails […] More

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