Central Bank of Brazil
Parade of Other Central Banks
June 17, 2021
Markets had reacted late Wednesday to the Federal Reserve‘s signal that its initial interest rate hike is likely to occur during 2023, rather than 2024 as implied previously. Several other central banks had scheduled policy reviews whose results were learned subsequently. At the time of the opening of U.S. stock market trading on Thursday, the […] More
Lower Dollar
May 6, 2021
The dollar settled back 0.4% on a weighted basis and against the euro overnight. The dollar also lost 0.5% relative to the Swiss franc, 0.3% versus the loonie, and 0.1% relative to the New Zealand and Australian currencies. The dollar alternatively edged 0.1% higher against the peso and sterling and held steady on balance versus […] More
Brazilian Selic Rate Hiked to 2.75%
March 18, 2021
As in Turkey, monetary policymakers at the Central Bank of Brazil out-tightened market expectations. The Selic interest rate was raised by 75 basis points, not 50 bps as forecast, to 2.75% in the first hike of any sort since 2015. The rate had been cut five different times last year from February through August by […] More
U.S. Treasury Yield Climbs Sharply in Spite of Fed’s Message and Lifts Dollar
March 18, 2021
Markets aren’t buying yesterday’s dovish policy message from the Federal Reserve. The 10-year U.S. Treasury yield roared ten basis points higher overnight to 1.74%, just shy of doubling mid-December’s level. The 10-year British gilt yield rose 6 basis points even though the Bank of England maintained its policy settings, too, and called its current monetary […] More
Slew of U.S. Executive Orders and Central Bank Policy Reviews
January 21, 2021
President Biden’s inaugural address yesterday called for national unity to face down the many severe challenges now juxtaposed. 17 executive orders followed to reverse several polices of the Trump era. Contrary to warnings, inauguration day was free of domestic violence. U.S. stocks experienced their greatest advance on a presidential inauguration day since 1985, when Reagan […] More
No Deals and Many More Covid Cases… Also Several Central Bank Meetings
December 10, 2020
Talks last night between British Prime Minister Johnson and EU Commission President Von Der Leyden failed to achieve a trade deal. The U.S. senate grinch, Mitch McConnell, put the brakes on efforts to nail down a fiscal stimulus. U.S. Covid deaths yesterday nudged above 3k, and that pace has accelerated to 3,340 over the last […] More
Dollar Rebound Continues While Equities Remain Exposed
October 29, 2020
There’s much to digest today: monetary policy reviews in Japan and Euroland, a first glimpse of U.S. 3Q growth, Covid lockdowns in France and Germany, and latest U.S. political developments as election campaign enters final days. The dollar strengthened overnight by another 1.4% versus the peso, 1.3% against the Australian dollar, 0.8% relative to the […] More
Equities Fall Even as Central Banks Commit to Maintaining Low Interest Rates
September 17, 2020
Share prices in Asia closed down 1.6% in Hong Kong, 1.2% in South Korea, 0.8% in Taiwan and India, 0.7% in Japan and 0.4% in China and Indonesia. Equities in Europe so far today have dropped 1.2% in Italy, 0.9% in France, 0.8% in Germany and Spain, and 0.5% in the U.K.. The dollar recovered […] More
Central Bank of Brazil Cuts Interest Rate Further as Expected
August 6, 2020
The Brazilian Selic interest rate was sliced another 25 basis points as expected to 2.0%. This was its fifth reduction of 2020, following cuts of 25 basis points in February, 50 bps in March, and 75 basis points each in May and June. The rate has been lowered progressively since the final quarter of 2016 […] More
No U.S. Fiscal Package Yet as New Jobless Claims Exceed 1 Million for 20th Consecutive Week
August 6, 2020
Congressional talks on an additional fiscal stimulus reportedly remain far apart. The hope has been to secure agreement by tomorrow. Global Covid-19 cases just rose above the 19 million mark, and the U.S. total is closing in fast upon 5 million confirmed infections. Although more than 200k less than forecast, new U.S. jobless insurance claims […] More
