ECB Enhances Stimulus

September 12, 2019

Policymakers at the European Central Bank as expected cut the deposit rate by 10 basis points to minus 0.50%, announced an open-ended asset purchase program to start in November at EUR 20 billion per month, said targeted LTRO operations will carry the average deposit rate, and introduced a a 2-tiered system of reserve remuneration in […] More

Anxious Times for Investors

January 24, 2019

Investors continue to face three big uncertainties: the U.S. government shutdown, the fast-approaching Brexit deadline, and the failure so far of U.S. and Chinese trade negotiators to reach a mutually satisfying agreement. Planned senate votes on the border wall and shutdown are not likely to pass. The on-again, off-again scheduled state of the union address […] More

Many Central Bank Meetings and a Stunning Deceleration of U.S. Import Price Inflation

December 13, 2018

The dollar shows no net overnight change against the Swiss franc, Chinese yuan, New Zealand dollar, or Canadian dollar. The greenback rose 0.8% versus the Mexican peso, 0.4% relative to the yen, and 0.1% versus the euro while dipping 0.1% vis-a-vis the Australian dollar and sterling. Asian equities rallied, but share prices in Europe and […] More

Thursday’s Menu: Central Bank Decisions, Price Data, Hurricane Florence, and a U.S. Offer for a New Round of High Level Trade Talks with China

September 13, 2018

The Central Bank of the Republic of Turkey lifted its key 0ne-week repo rate by a greater-than-expected 625 basis points to 24.0%. The dollar lost 2.8% against the lira afterward and has also fallen 1.0% against the Russian ruble, 1.6% relative to the South African rand, and 0.6% versus the Mexican peso. The Bank of […] More

Facebook Plunges, ECB and OPEC Review Things, and a U.S.-EU Trade Accord Is More Truce than Agreement

July 26, 2018

The ballooning credibility gap of Facebook finally hit the company’s share price, which has tumbled 19.4% so far today from $217.50 to $178.28. Alphabet, the parent of Google, is down 4.3%, but the DOW is up 0.5%. The ECB Governing Council reviewed its policy stance and decided not to change such. The ECB interest rate […] More

Modest Market Retrenchment Ahead of ECB Announcement

April 26, 2018

The ECB Governing Council is holding a policy review to be followed by Draghi’s press conference. The Bank of Japan Board began a two-day meeting whose results will be revealed Friday. The BOJ also releases a quarterly Outlook for Economic Activity and Prices tomorrow, which will update its macroeconomic forecasts. After meetings with U.S. President […] More

Thursday Round-Up

March 8, 2018

The dollar rose against the euro, Swiss franc and sterling but closed little changed today on the yen. Equities firmed, but commodities, Treasury yields, and other sovereign debt yields declined. Trump imposed tariffs of 25% on steel and 10% on aluminum but with exemptions for now in the case of Nafta partners and flexibility in […] More

Dollar Extends January Losses

January 25, 2018

The dollar declined overnight by 0.5% versus the yuan, 0.4% relative to the Swiss franc and sterling, and 0.2% against the euro, yen, and peso. President Trump arrived in Europe to attend the Davos World Economic Forum. His threat of protectionism is now transitioning into actual action. The Governing Council of the European Central Bank […] More

European Central Bank

December 14, 2017

ECB officials continue to strike a fine balance between hailing a better functioning economy but without encouraging markets to anticipate higher interest rates. The end-year policy review retained a negative 0.4% deposit rate and reiterated that “we continue to expect [rates] to remain at their present levels for an extended period of time, and well […] More

Central Bank Policies in the Spotlight

October 26, 2017

The Governing Council of the European Central Bank left its interest rate structure including a negative 0.4% deposit rate as is. The current monthly purchases of securities at a pace of 60 billion euros will continue this quarter and be reduced by half to 30 billion euros per month as of January. Quantitative stimulus at […] More