British CPI

Dollar Rebound Extended 0.3%

February 17, 2021

The dollar is 0.3% stronger on an effective trade-weighted basis. It is up 0.4% against the euro and near the day’s high and touched a 5-month high of 106.22 Japanese yen overnight. The reviving dollar reflects climbing long-term U.S. interest rates as investors are betting on the Congress approving a pandemic relief package of around […] More

Coronavirus Infections Kicking into Higher Gear

October 21, 2020

The trend in new cases of Covid-19 are intensifying and becoming more dispersed in both Europe, where many governments have been compelled to reimpose restraints on social activity, and the United States where the 24-hour increase again topped 60k. Optimism has swelled that a U.S. fiscal stimulus may get passed before the election. Talks continued […] More

Greater Pessimism Surrounding Brexit, U.S.-China, and Global Growth

October 16, 2019

Investor confidence regarding the main geopolitical risks of Brexit and U.S.-Sino trade continue to flip-flop seemingly on a daily basis, often without any concrete new actions. Still no deal on Brexit has been announced with the main sticking point being the handling of Northern Ireland’s border with Ireland, and time is getting exceedingly short. Trade […] More

Fed Expected to Announce Interest Rate Cut Today But Forward Guidance Uncertain

September 18, 2019

Investors will be focused not on what actions the Fed implements today but rather on what is said about future monetary policy where FOMC voting members appear divided. Macroeconomic forecasts will be updated, and Chairman Powell will hold a press conference afterward. The dollar has been decently bid today, with gains overnight amounting to 0.4% […] More

Yield Curve Inversion Amplifies Recession Fears and Flight to Safe Assets

August 14, 2019

The 2-year Treasury note yield edged marginally above the 10-year yield for the first time in 14-1/2 years. This and a similar yield curve inversion in the U.K. happened as investors selectively fixated on weak data while ignoring some better-than-expected statistics, causing share prices to drop sharply in Europe and the United States. Losses amount […] More

Brexit Mess and Central Bank News

May 22, 2019

The latest Brexit proposal from British Prime Minister May was defeated heavily by a parliamentary vote of 432-202. That was a significantly bigger defeat than on her previous attempt. Sterling dropped to a four-month low of $1.2641. The ten-year British gilt yield slid six basis points to 1.02%, but the Ftse-100 avoided the slide experienced […] More

Three-Pronged Blow to European Confidence

May 23, 2018

Italy is poised to get a populist, anti-euro, anti-austerity, and pro-Russia governing coalition. Being the third largest economy to use the euro, this development poses an existential risk to the common European currency that is far greater than the debt problems of Greece. Ten-year sovereign debt yields rose 10 basis points today in Italy in […] More

Lessening Inflation in Europe and Some Significant Meetings

April 18, 2018

Japanese Prime Minister Abe and President Trump are meeting in Florida. CIA Director Pompeo, who has been nominated by Trump to be Secretary of State, met secretly with North Korean President Kim Jong-Un, to decide arrangements for Kim’s historical talks next month with Trump. Investors perceive lessening geopolitical tension. British CPI inflation in March fell […] More

Another Selling Wave Hits Stocks

February 13, 2018

Concern about the U.S. fiscal deficit appears to have been the catalyst for the latest drop in equities. A bill that passed the House by a vote of 240 to 186 and the Senate by 71 to 28 has been signed by President Trump, aborting a short-lived government shutdown, the second one of his administration. […] More

Dollar, Pound and Most Equities Falter as a Ton of Economic Data Got Released

November 14, 2017

The dollar rose 0.7% against sterling while posting losses overnight of 0.7% against the euro, 0.4% versus the Swiss franc, 0.2% vis-a-vis the Australian dollar, and 0.1% relative to the yen, loonie, peso and yuan. The kiwi fell 0.5%. Share prices declined 0.9% in Australia, 0.6% in Indonesia, Singapore and Hong Kong, and 0.5% in […] More

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