Markets Closed for Holiday in Japan, the United States and Canada

October 13, 2014

After last week’s swoon, financial market volume on Monday will be suppressed by three market closures, Japan for Health and Sports Day, the U.S. for Columbus Day, and Canada for Thanksgiving. Stocks in the Pacific Basin closed down 2.8% in Taiwan, 1.1% in New Zealand, 1.0% in Indonesia, 0.7% in Singapore and South Korea, 0.6% […] More

A Number of Surprises

October 9, 2014

Fed officials rarely comment on the dollar, so the following passage from minutes of September 16-17 meeting of the FOMC caught the market’s attention, sending the dollar and bond yields lower and turning around Tuesday’s swoon in equities. Some participants expressed concern that the persistent shortfall of economic growth and inflation in the euro area […] More

Euro Remains Firm ahead of Draghi Testimony

July 14, 2014

ECB President Draghi will be testifying today before the EU Parliament in Strasbourg, France.  Excessive euro strength is a more pressing issue. Federal Reserve Chair Janet Yellen testifies Tuesday on Monetary Policy and the State of the Economy before the Senate Banking Committee.  She will reprise that testimony Wednesday before the House Financial Services Committee.  […] More

Holiday Closures in U.K. and United States

May 26, 2014

The United States is observing Memorial Day, and there is a spring bank holiday in Britain.  These closures will dampen market activity today.  The dollar is unchanged against the euro, Swiss franc and kiwi, up 0.1% versus the Chinese yuan and off 0.1% relative to the yen, loonie, Australian dollar and sterling. Share prices advanced […] More

Euro Weakens Further in Post-Draghi Reaction

May 9, 2014

The takeaway from yesterday’s ECB press conference is that it’s a matter of what kind of stimulus the ECB will announce next month, rather than whether something is going to be introduced then.  A big part of this preparation stems from mounting frustration with the euro’s prior appreciation and how the currency’s strength could promote […] More

Many Central Banks Meet — Most Retain Existing Policy Stances

May 8, 2014

Central banks in Malaysia, Indonesia, Norway, and the Philippines left key interest rates unchanged at 3.0%, 7.5%, 1.5% and and 3.5%, respectively.  All these actions were as expected.  The National Bank of Serbia, in contrast, cut its key policy interest rate to 9.0% from 9.5%.  Next up is the Bank of England, then the ECB […] More

Further Rise of Share Prices Ahead of ECB Event

March 6, 2014

Stocks have risen 1.6% in Japan, 1.1% in India, 0.9% in Taiwan, 0.8% in New Zealand, 0.6% in Hong Kong and Indonesia, and 0.5% in China.  In Europe, equities are up so far by 1.3% in Spain, 0.7% in France, 0.3% in Germany and Switzerland, and 0.2% in Britain.  The dollar fell overnight by 0.8% […] More

Aussie and New Zealand Dollars Weaken while Euro and Swissie Strengthen

November 22, 2013

The U.S. dollar has risen 0.7% and 0.6% against the Oz and kiwi but is 0.3% softer relative to the euro and Swiss franc.  The dollar also climbed 0.3% relative to the loonie and is unchanged vis-a-vis the yen, yuan and sterling. Share prices rose 0.9% in Australia, 0.6% in South Korea, 0.5% in Hong […] More

More Productive U.S. Budget Talks???

October 10, 2013

There were unconfirmed overnight press reports that budget negotiators were showing greater willingness to compromise on a temporary extension of the budget ceiling that would push the drop dead date a month or so past mid-October.  Meanwhile, the release of more scheduled U.S. data has been delayed. Brazilian monetary authorities lifted the Selic interest rate […] More

Janet Yellen’s Day

October 9, 2013

Press reports emerged overnight that President Obama will announce today his nomination of Fed Vice-Chairperson Yellen to succeed Chairman Bernanke, whose term expires at the end of January 2014.  Yellen has extensive training as an economist and experience in the Federal Reserve System.  While she has an image in market circles for being dovish because […] More