New Overnight Developments Abroad - Daily Update

Turkish Lira Under Renewed Pressure

April 21, 2021

A cabinet reshuffle in Turkey has depressed the lira 0.5% against the dollar to a 10-day low. Overall, the U.S. currency shows limited and mixed overnight movement with upticks of 0.3% versus the Swiss franc, 0.2% relative to the euro and 0.1% vis-a-vis sterling, no net change against the Japanese yen or Chinese yuan, but […] Read Article

Foreign Exchange Insights and Next Week

Next Week’s Menu: April 17 – 23, 2021

April 16, 2021

Central Banks: Monetary policy reviews are scheduled at the European Central Bank and in Canada, Indonesia, Russia, and Israel. The People’s Bank of China sets its loan prime rates for the coming month, and the Reserve Bank of Australia publishes minutes of its last policy meeting. ECB President Lagarde and Govenors Macklem of the Bank […] Read Article

Central Bank Watch

Bank of Canada Reduces Pace of Bond Purchases and Adjusts Forward Guidance Slightly

April 21, 2021

As expected, Canada’s overnight interest rate target, which has been 0.25% since a trio of half-percentage point cuts in March 2020, was left unchanged. However, the targeted weekly amount of quantitative stimulus was lowered from “at least 4 billion” to $3 billion, according to a released statement. Governing Council members assert a continuing need for […] Read Article

Deeper Analysis

March and First Quarter 2021 in Figures

April 1, 2021

None of central banks below changed policy interest rates during the first quarter, but 10-year sovereign debt yield recorded sharp advances. Favorable U.S. long-term interest rate differentials became even more so during March. In spite of rising long-term bond yields, equities experienced gain last quarter including in March. The U.S. and Canadian dollars strengthened last […] Read Article

New Overnight Developments Abroad - Daily Update

Equities Retreat Additionally; Dollar Flattens

April 20, 2021

Monday’s drop in share prices has been extended amid concerns about the pandemic and higher inflation. Stocks closed down 2.0% in Japan, 0.7% in Australia and New Zealand, 0.6% in Singapore and 0.1% in China. Losses so far in Europe range between 0.8% and 2.0% in Switzerland, Germany, the U.K., France, Italy and Spain, and […] More

New Overnight Developments Abroad - Daily Update

Dollar Close to a Two-Month Low

April 19, 2021

The dollar kicked off this third week of April with a 0.5% decline on a weighted basis overnight. The U.S. currency lost 0.7% against the Swiss franc, 0.6% versus the yen, Australian and New Zealand dollars, 0.5% relative to sterling, and 0.4% against the euro and Mexican peso. To some extent, the dollar’s slippage may […] More

New Overnight Developments Abroad - Daily Update

More Evidence of Economic Recovery, Reviving Inflation, and Persistent Covid

April 16, 2021

Friday finds the dollar a touch softer, with overnight dips of 0.3% against the Swiss franc and kiwi, 0.15% relative to the U.S. currency’s weighted index, and 0.1% vis-a-vis the euro. The dollar also has firmed 0.6% against the Turkish lira, 0.2% versus the loonie and 0.1% against the yen and Australian dollar. The 10-year […] More

New Overnight Developments Abroad - Daily Update

Spotlight on Central Banks, Fresh Data and, as Always, Covid

April 15, 2021

The uncertain delayed roll-out of the J&J one-shot Covid vaccine is creating consternation, especially in light of high rates of new cases in many places. The National Bank of Ukraine’s policy interest rate was raised a full percentage point to 7.5%. This was the second straight tightening and twice the size of the initial 50-basis […] More

Central Bank Watch

Central Bank Interest Rate Hike in Belarus

April 14, 2021

Accelerating inflation was uppermost on the minds of policymakers at the National Bank of Belarus, who today announced a 75-basis point hike in their refinancing rate to 8.5%. During the first half of 2020, the rate had been cut 25 basis points in Jranuary, 75 bps in May and 25 bps in June to a […] More

New Overnight Developments Abroad - Daily Update

Awaiting U.S. Import Prices, Jay Powell’s Speech and Fed’s Beige Book

April 14, 2021

The dollar fell 0.7% overnight against the New Zealand dollar and 0.5% relative to the Turkish lira and Australian dollar. But more senior dollar relationships such as the euro, yen, Swiss franc, sterling, and yuan, the dollar is barely changed and down just 0.1% in weighted terms. For the first time in years, markets have […] More

New Overnight Developments Abroad - Daily Update

Spotlight on the United States

April 13, 2021

U.S. consumer prices rose 0.6% last month, which was marginally more than forecast and the largest month-on-month increase in 103 months. The 2.6% 12-month increase in the CPI was 0.9 percentage points more than in February and constitutes a 31-month  high. The energy component advanced 5.0% on month and 13.2% on year, but non-energy service […] More

New Overnight Developments Abroad - Daily Update

Modest Dollar Pull-Back

April 12, 2021

On a Monday with few data releases, the dollar has slipped 0.3% against the yen and sterling, 0.2% relative to the Mexican peso, and 0.1% versus the euro, Swiss franc, Australian dollar, Chinese yuan and against its weighted DXY index. Fed Chairman Powell gave an upbeat interview aired Sunday night on 60 minutes in which […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: April 10 – 16, 2021

April 9, 2021

Central Banks: Monetary policies will be reviewed in New Zealand, Serbia, South Korea, Turkey and Ukraine. The Fed Beige Book of regional U.S. economic conditions will be published, and Fed District Presidents Williams and Rosengren will be speaking publicly. Events: The World Bank/IMF meetings wrap up this weekend. EU finance ministers meet April 16th. Scheduled […] More

New Overnight Developments Abroad - Daily Update

Weaker-than-Forecast European Industrial Production Lifts Dollar

April 9, 2021

The dollar rebounded 0.2% against its weighted index overnight from a 2-week low. One boost came from a five-basis point rise of the ten-year U.S. Treasury yield, even though other comparable sovereign debt yields also advances strongly. The dollar rose 0.4% against the yen, 0.3% versus the Mexican peso, 0.2% vis-a-vis the Swiss franc and […] More

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