New Overnight Developments Abroad - Daily Update

Bond Market Slide Weighing on Dollar and Stocks

January 10, 2018

Rising long-term interest rates caused by growing optimism about global growth prospects is now depressing the dollar and stocks. The 10-year Treasury yield is 18 basis points above the end-2017 level just seven business days into 2018. Another Treasury market depressant has been an apparent Chinese decision to suspend purchases of U.S. government debt. The […] More

New Overnight Developments Abroad - Daily Update

Firmer Yen

January 9, 2018

The Japanese yen advanced 0.4% overnight against the dollar and by even more versus main European currencies. Investors reacted after the Bank of Japan bought fewer 10-year and longer JGBs in its operations today, which kindled suspicion the quantitative stimulus may be throttled back in 2018. The Japanese Nikkei-225 share price index climbed 0.6%, but […] More

Central Bank Watch

First Romanian Policy Interest Rate Hike since 2003

January 8, 2018

The first change of a key central bank interest rate was made by the National Bank of Romania, where the key policy rate, deposit facility rate, and lending facility rates were raised 25 basis points each to 2.0%, 1.0% and 3.0%. The policy interest rate had been at 1.75% since a 25-basis point reduction in […] More

New Overnight Developments Abroad - Daily Update

More Evidence of Strong Growth in the Euro Area

January 8, 2018

Economic sentiment in the euro area leaped 1.6 points to a December reading of 116.0, best since October 2000. Sentiment improved across the board — industry, households, services, retail, and construction. A separate measure, the business climate index, rose 1.7 points to the best score ever in this data series dating back to 1985. The […] More

Foreign Exchange Insights and Next Week

Next Week

January 5, 2018

Central Banks: Policy meetings are scheduled in Israel, Poland, South Korea, Peru, Serbia, and Romania. Many Fed officials have scheduled public speaking engagements: Kashkari, Dudley, Evans, Bullard, Rosengren, Bostic, Potter, Mester, and Williams. ECB minutes and the Bank of Canada’s Business Outlook Survey will be published. Japanese Closure on Monday: Coming of Age Day. Scheduled […] More

New Overnight Developments Abroad - Daily Update

Dollar and Stocks Up and Commodities Down Ahead of U.S. Jobs Report

January 5, 2018

The dollar has advanced overnight by 0.5% against the yen, 0.4% vis-a-vis the peso, 0.3% versus the Aussie dollar, 0.2% relative to the euro and Swiss franc, and 0.1% against the loonie. There’s been a dip of 0.1% versus the yuan. The Nikkei-225 in Japan recovered another 0.9%, and the South Korean Kospi is 1.3% […] More

Foreign Exchange Insights and Next Week

Dollar Reflections on a Snowy Day Early in January

January 4, 2018

Economic fundamentals improved last year in the United States and many other countries. Real activity grew faster. Inflation pivoted away from being troublesomely low to levels that still remained weaker than desired but ones that permitted monetary policy normalization to proceed gradually. Current account surpluses were experienced in the usual suspects such as Germany, Switzerland, […] More

New Overnight Developments Abroad - Daily Update

Leaping Equities

January 4, 2018

The spirited surge in equities was extended in overnight trading, with Japan’s first session of the new year posting a 741-point or 3.3% rise in the Nikkei-225 index. Share prices also climbed 1.1% in Singapore, 0.8% in Hong Kong, 0.7% in Indonesia and 0.5% in India and China. With the baton passing to Europe, stocks […] More

Deeper Analysis

Manufacturing Activity Grew Last Month at a Faster Pace in the U.S. and Euro Area

January 3, 2018

The U.S.-minus-Euroland PMI spread narrowed to -0.9 percentage points in December from -1.9 percentage points in November. The ISM’s U.S. index rose to a 3-month high of 59.7% from 58.2%, and IHS’s Euroland┬ápurchasing managers index climbed to a record high of 60.6% from 60.1%. The high export content of manufacturing makes such more sensitive to […] More

New Overnight Developments Abroad - Daily Update

Stocks Keep Rising but Dollar Steadies

January 3, 2018

In overnight trading, the dollar recouped 0.4% against the Swiss franc, 0.3% versus the euro, 0.2% relative to sterling and 0.1% vis-a-vis the loonie, yuan and kiwi. A particularly large 1.1% advance against the Mexican peso followed U.S. President Trump’s renewed call for a southern border wall and tighter restraints on immigration. The dollar dipped […] More

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