foreign exchange
August in Figures
August 31, 2019
The most discussed financial market development of August is actually not depicted in the standard month in figures table below, and that was the inversion of the U.S. yield curve, which has been a pretty reliable leading indicator of a recession beginning 18-24 months later. Between the end of July and August 30th, the U.S. […] More
July 2019 in Figures
July 31, 2019
Even though only the Fed among major central banks cut interest rates in July, long-term interest rates declined in Europe but changed hardly at all over the course of the month in the United States, Canada, or Japan. The Fed’s 25-basis point interest rate cut announced on the final day of the month was its […] More
Stronger Dollar
July 16, 2019
The dollar strengthened overnight by 0.9% against sterling, 0.6% relative to the peso, 0.4% versus the euro and Swiss franc, 0.3% vis-a-vis the yen, 0.2% against the Aussie dollar and 0.1% versus the kiwi. In other euro cross-rate developments, sterling weakened to a half-year low against the common currency, but the Swiss franc is hovering […] More
June and the Second Quarter in Figures
June 28, 2019
Although the major central banks did not change their key short-term interest rates in the second quarter, global disinflation and decelerating economic growth depressed expected inflation and fanned speculation that monetary policies will be eased later in 2019. This in turn put downward pressure on long-term interest rates but incentivized share prices to climb. President […] More
May 2019 in Figures
June 1, 2019
The month of May exemplified the global interdependence national financial markets, and the unifying force was rising risk aversion. Whereas equities had climbed broadly in April, all the ones shown below dropped just about as sharply in May. Likewise, climbing 10-year sovereign debt yields in April were reversed last month, and except in the case […] More
Sovereign Debt Yields Rise Further
April 15, 2019
Ten-year sovereign debt yields rose overnight in Europe and Japan. Share prices climbed 1.4% in Japan, 0.9% in New Zealand, 0.7% in Taiwan, 0.5% in Indonesia, and 0.4% in India but fell 0.3% in China and Hong Kong. European equity markets are little changed. West Texas Intermediate oil dropped 1.1%, and Comex gold is trading […] More
March and First Quarter 2019 in Figures
March 30, 2019
The table below documents changes in key market variables during March and the first quarter of 2019. Sharply reduced sovereign debt yields in both time intervals amidst slowing global growth and lessening inflation were a driving force behind other markets as well. Equities benefited but not nearly as much in March when the U.S. yield […] More
Sterling Takes a Hit… Brexit Not Going Well
March 12, 2019
Sterling depreciated 0.9% overnight against the dollar, which is otherwise down 0.2% against the yuan and Swiss franc and by 0.1% vis-a-vis the euro and kiwi. The dollar is also unchanged relative to the yen, loonie, Australian dollar and Mexican peso. Prime Minister May’s attorney general said changes in the handling of the Irish border […] More
February in Figures
February 28, 2019
Sterling and the dollar strengthened during February. Ten-year sovereign debt yields rose slightly more sharply in the month than their counterparts in the other countries featured in the table below, but none of the central bank rates among them were changed. Equities in most of the places continued to recover, although not as much as […] More
Greater Optimism on A U.S. Border Security Deal
February 12, 2019
The U.S. Congress reached an accord “in principle” on a border security deal. Details still need to be fleshed out, and it’s not clear if President Trump is prepared to sign such. But the development inspired enough hope to lift U.S. share prices about 1% in early Tuesday trading. Stocks earlier rose 2.6% in Japan, […] More
