German GDP

Investors Continue to Mark Time Ahead of Jackson Hole Symposium

August 24, 2016

Overnight the dollar rose 0.2% against the euro and 0.1% versus the Swiss franc but slipped 0.3% against the kiwi and 0.2% relative to sterling. There’s been no net change vis-a-vis the yen or Aussie dollar. Share prices rose 0.7% in Singapore, 0.3% in India and 0.6% in Japan but fell 0.7% in Hong Kong […] More

Pound Up on Reduced Brexit Fears

May 24, 2016

A new phone poll by Daily Telegraph revealed a widening margin of voters favoring Britain staying in the European Union (55% to 42%), and sterling rose 0.9% against the dollar in response. The U.S. currency otherwise climbed 0.9% against the Aussie dollar, 0.6% versus the kiwi, 0.3% vis-a-vis the euro and yen, 0.2% relative to […] More

Fresh Focus on Chinese Policy

February 23, 2016

China again has been the straw that stirred things us.  The catalyst today was the largest daily reduction of the yuan’s fixing value by officials at the People’s Bank of China in several weeks.  The result was renewed risk aversion. A secondary depressant was a weaker-than-expected German business climate in February reported by the Ifo […] More

Chinese Central Bank to the Rescue — Really No Big Deal

August 25, 2015

The People’s Bank of China reduced its one-year lending and deposit rates by 25 basis points each to 4.60% and 1.75% while also slicing its reserve requirement ratio to 18.0% from 18.5%.  Stock markets rebounded on the news. Near 10:30 EDT, key U.S. stock market indices were up by 2.5-3%. In Europe, share prices gained […] More

Awaiting Janet Yellen’s Semi-Annual Humphrey-Hawkins Testimony

February 24, 2015

Day One of Fed Chair Yellen’s testimony on the economy and monetary policy begins at 10:00 before the Senate Banking Committee.  On Wednesday, she will reprise the testimony before the House Financial Services Committee.  The testimony comes amid rising Congressional hostility to an independent central bank.  Indeed, a major question before the American people in […] More

Swiss National Bank Lights a Firestorm and India’s Central Bank Also Surprises

January 15, 2015

There’s been a whole lot of shaking going on in world financial markets overnight. Dollar/Swissie plunged 14.2%, and Swiss equities have slumped 9.5%.  The trigger for these big moves was the Swiss National Bank’s abandonment of its 1.2000 franc per euro ceiling, which was imposed initially on September 6, 2011.  The cost of intervention was […] More

Mixed Data, Muted Market Changes

November 25, 2014

U.S. GDP growth in the third quarter was revised unexpectedly higher by almost a half percentage point to 3.9%.  The 2-quarter rise between 1Q and 3Q was the strongest in more than ten years.  The core PCE deflator inflation rate of 1.5% remains a half percentage point below target.  Growth was led by private domestic […] More

Euro Touches $1.3119, Weakest Level since September 6, 2013

September 1, 2014

Today is the 75th anniversary of Germany’s invasion of Poland that ignited the Second World War.  Germany is currently engaged in a philosophical dispute with the ECB and other European nations over the proper course of fiscal policy for the region. U.S. and Canadian markets will be closed today for Labor Day holiday observances. Precarious […] More

Sharp Decline in Chinese Yuan to a Four-Month Low

February 25, 2014

The yuan weakened 0.4% against the dollar, arousing some suspicion that Beijing officials may be orchestrating the slide as a protest against rising strains with the United States over a variety of geopolitical matters.  Share prices in China continued their retreat, falling by a further 2.6%. Bank of England Monetary Policy Committee member Ian McCafferty […] More

Equities Find Better Footing and Dollar Firmer, Too

January 15, 2014

The dollar rose overnight by 0.6% against the Swiss franc, 0.5% relative to the euro, 0.4% against the Aussie dollar, 0.2% vis-a-vis the loonie and kiwi, and 0.1% against the yuan, yen and sterling. Japan’s Nikkei rebounded 2.5% from a 3.1% slump the day before.  Equities also closed up 1.2% in India and Indonesia, 1.0% […] More