U.S. CPI
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
More Volatile Global Markets as Concern Mounts about Turkey
August 10, 2018
Turkey commands the spotlight of global financial markets this Friday. Talks broke down between the U.S. and Turkey over the latter’s continuing detention of an American evangelical pastor, which has prompted economic sanctions by the United States on an economy already gripped with upward spiraling inflation and a central bank interest rate near 18%. The […] More
Awaiting China’s Response on Tariffs and Watching Price Data
July 12, 2018
Today saw more hope than on Wednesday that officials in Beijing will take a step back rather than escalate the trade war with the United States following the latest tariff increases proposed by President Trump. Perceptions on this issue remain highly fluid, however, and could turn gloomier very quickly. Share prices advanced 2.2% in China, […] More
Weaker Yen in Early Tuesday Trading
March 13, 2018
Ahead of the release of U.S. consumer price data, the yen has dropped 0.8% against the dollar to a near 2-week low and 3-week low versus the euro. Japanese producer prices and its tertiary index were released overnight. Japanese domestic corporate goods prices were unchanged in February, trimming their 12-month rate of increase to 2.5% […] More
Dollar Slide Accelerates Against Several Key Currencies
January 12, 2018
The dollar dropped overnight by 0.9% against the euro, 0.7% relative to the yuan and sterling, and 0.5% versus the Swiss franc and Mexican peso. The catalyst for this accelerated decline was a tentative political plan in Germany between the center-right Christian Democrats and center-left Christian Socialists to form a new “grand coalition.” Those two […] More
Dollar Slips and Stocks Rise Ahead of Last FOMC Decision of the Yellen Era
December 13, 2017
The dollar fell overnight by 0.7% against the kiwi, 0.6% versus the Aussie dollar, 0.4% relative to sterling, 0.3% vis-a-vis the yen and 0.1% against the euro, Swiss franc and loonie. Core U.S. CPI inflation in November was 0.1 percentage point less than forecast with a rise of 0.1% from October and a 1.7% 12-month […] More
More Evidence of Subdued Inflation
October 13, 2017
The dollar fell overnight by 0.7% against the Australian dollar, 0.6% relative to the kiwi, 0.4% versus the yen and sterling, 0.3% vis-a-vis the Swiss franc, 0.2% against the euro and 0.1% versus the yuan. The peso and loonie remained unchanged even as President Trump suggests that it may not be possible to fix the […] More
Some Fresh Developments
September 14, 2017
The Bank of England’s Monetary Policy Committee did not change interest rates or asset purchase parameters but signaled a growing probability of a rate increase within a couple of months. In response, sterling rose 0.8% against the dollar, the 10-year British gilt yield climbed three basis points to 1.17%, and the Ftse stock index declined […] More
Cross-Currents: U.S./Asian Political Tensions Versus Continuing Low U.S. Inflation
August 11, 2017
Concerns about a U.S./North Korean war continue to weigh on investor minds, but lower-than-forecast U.S. CPI data for July kept U.S. stocks stable and at the open following Thursday’s sell-off. Trump declared America’s military options “locked and loaded” in the event that North Korea fires a missile near Guam. U.S. total consumer prices ticked up […] More
Broad Financial Market Adjustments Intensify in Wake of FOMC Meeting
December 15, 2016
The dollar gained overnight by another 2.0% against the Australian dollar, 1.5% versus the euro, 1.6% vis-a-vis the kiwi, 1.2% relative to the yen, 0.9% against sterling, and 0.6% versus the yuan. Key levels are being approached such as parity with the euro, 120 yen, and 7 renminbi. Throughout the 8-year Obama stewardship, Republicans fought […] More
