Focus Shifting to Upcoming ECB and BOJ Monetary Policy Reviews

July 19, 2017

Yesterday’s story centered on the failed U.S. healthcare repeal and replace bill, which sent the dollar sharply lower. The dollar today has declined a further 0.4% against the yen and Australian dollar, 0.3% relative to the loonie and kiwi, and 0.1% vis-a-vis sterling and the Swiss franc. But the dollar recovered 0.2% against the euro […] More

ECB Officials Becoming More Optimistic But Not Enough So to Reduce Stimulus

April 27, 2017

A statement released after today’s meeting of the European Central Bank Governing Council proclaims, “that the cyclical recovery of the euro area economy is becoming increasingly solid and that downside risks have further diminished” but goes on to say “underlying inflation pressures continue to remain subdued and have yet to show a convincing upward trend. […] More

Three Central Bank Meetings, Weaker Oil, and Several Data Releases

April 27, 2017

The dollar is up 0.5% against the kiwi, 0.4% relative to the loonie, and 0.3% against the euru and Aussie dollar but flat against sterling and softer versus the peso. Stocks are slightly lower in the U.S., Europe and Japan. Ten-year sovereign bond yields fell six basis points in Germany, France and Italy and by […] More

Oil Swoons, Dollar Firm, and an ECB Policy Meeting

March 9, 2017

West Texas Intermediate crude oil, which closed February above $54 and at 53.20 this past Tuesday, extended its plunge by 2.3% overnight to $49.12, a 3-month low. U.S. inventories are bloated. Due to a likely Federal Reserve interest rate hike next week and mounting expectations of perhaps three more increases during 2017, the dollar rose […] More

Several Central Banks Hold Scheduled Policy Meetings

January 19, 2017

Central banks in Euroland, Indonesia, Malaysia and Chile hold their first interest rate policy meetings of 2017. The ECB retained a zero percent refinancing rate, flanked by a 0.25% interest on its marginal lending facility and a negative 0.40% deposit rate. Bond buying of EUR 80 billion per month will continue this quarter, followed by […] More

European Central Bank Does Something Unexpected

December 8, 2016

Back last March, the Governing Council had augmented monetary policy easing in several ways, such as cutting the interest rates by 5 bps each in the case of the refinancing rate (now at zero percent) and marginal lending facility (0.25%) as well as the deposit rate by 10 bps to -0.40%. Monthly asset purchases were […] More

ECB Passes on an Opportunity to Augment Stimulus

September 8, 2016

In a show of shock and awe six months ago, the Governing Council reduced its refinancing rate, marginal lending facility rate and deposit rate to zero, 0.25% and negative 0.40%, plus quantitative stimulus was expanded 33% to monthly asset purchases of EUR 80 trillion. Although not universally expected by analysts, some believed and even more […] More

ECB Fails to Ease.. Several Japanese and Chinese Indicators Reported

September 8, 2016

The dollar fell overnight by 0.6% against the Australian dollar, 0.5% relative to the euro, 0.3% versus the Swissie, and 0.1% vis-a-vis the yen, loonie and sterling. The yuan is steady. Share prices around the Pacific Rim fell 0.7% in New Zealand and Australia and 0.3% in Japan but rose 0.6% in Hong Kong. In […] More

People and U.S. Data Making News

July 21, 2016

At the Republican National Convention in Cleveland, Texas Senator Ted Cruz shocked the crowd by not endorsing Donald Trump for president and was booed for his disloyalty.  Indiana Governor Mike Pence gave a more effective VP nomination speech than had been expected, but the broad picture is one of tensions within the GOP.  Donald Trump speaks […] More

ECB Review

June 2, 2016

The Governing Council left key interest rates unchanged.  The last changes in March sliced the refinancing rate and marginal lending facility rate by 5 basis points each to zero and 0.25%, respectively, and the deposit rate by 10 basis points to negative 0.40%. A released statement from ECB President Draghi placed the focus on implementing […] More