New Overnight Developments Abroad - Daily Update

Softer Dollar/Stronger Equities

October 19, 2021

The dollar fell against most currencies overnight including drops of 0.4% against the euro and weighted DXY index. The dollar also lost 0.7% relative to sterling and 0.8% versus the Aussie dollar but just 0.2% against the Japanese yen. The 10-year Treasury yield is a basis point lower, while its German and Japanese counterparts are […] Read Article

Foreign Exchange Insights and Next Week

Next Week’s Menu: October 16 – 22, 2021

October 14, 2021

Central Banks: Monetary policy reviews are scheduled next week in Indonesia, Turkey, Ukraine, Hungary, and Russia. Also, the People’s Bank of China will set its loan prime rates for the coming month, and the Federal Reserve Beige Book and minutes of the last Reserve Bank of Australia policy meeting will be published. RBA Governor Lowe […] Read Article

Central Bank Watch

Monetary Authority of Singapore Tightens Stance

October 14, 2021

Today, the Monetary Authority of Singapore, which targets the exchange rate rather than an interest rate and which reviews its stance only semi-annually, surprised analysts by raising the slope of the S-dollar’s allowed trading band. The band had been lowered in April 2020 as Covid hit to a slope of zero percent. Officials did not […] Read Article

Deeper Analysis

September 2021 and Third Quarter in Figures

September 30, 2021

The summer quarter of 2021 was a volatile one, as it became increasingly apparent to central bankers, economists and investors alike that because of relentless and deepening supply bottlenecks inflation was rising faster and likely to remain very elevated for considerably longer than had been assumed in the first half of the year. Meanwhile, uncertainties […] Read Article

New Overnight Developments Abroad - Daily Update

Investors React to Global Inflation and Slower Growth in China

October 18, 2021

The third week of October commenced with sharply higher long-term interest rates, a strengthening dollar, and a setback in equities. The rising price of West Texas Intermediate crude oil touched its highest level in the past 52 weeks and is currently showing a 1.6% advance from Friday’s closing level. Bitcoins cost over $60,000 and are […] More

New Overnight Developments Abroad - Daily Update

Dollar Unchanged Overnight but Down Slightly for the Week

October 15, 2021

The DXY weighted dollar index is 0.2% softer than a week ago, setting the stage for its first weekly decline in six weeks. Overnight movements have been diverse, with a 0.6% slide against sterling but a 0.6% rise against the yen, touched a multiyear high of 114.4 earlier today. The dollar slipped 0.3% against the […] More

Bank of Chile

Central Bank of Chile

October 14, 2021

More central banks have reacted to the rise in inflationary risks. Late Wednesday came news from the Central Bank of Chile of a unanimously agreed greater-than-projected 125-basis point high in its policy interest rate. This move was the third recent hike following increases of 25 basis points in July and 75 bps at the end […] More

New Overnight Developments Abroad - Daily Update

Optimism Bumps Up that Recovery Can Withstand Covid, Higher Inflation, and Central Bank Tightening

October 14, 2021

Equities have experienced a better session, with higher closes in Asia of 1.5% in Japan and South Korea and 1.4% in Indonesia. Hong Kong was closed for the Chung Yeung festival. The German Dax, Paris Cac and British Ftse are respectively up 0.9%, 1.0% and 0.7%, and U.S. futures point to similar gains. The move […] More

New Overnight Developments Abroad - Daily Update

Many Data Already Reported… Now Waiting for U.S. CPI and FOMC Minutes

October 13, 2021

The dollar slipped overnight by 0.3% against the Swiss franc and sterling, 0.2% versus the euro, peso and on a DXY weighted basis, and 0.1% relative to the Canadian dollar, Chinese yuan, and Turkish lira. Ten-year sovereign debt yields have dropped four basis points in Germany and five bps in the U.K. but only a […] More

New Overnight Developments Abroad - Daily Update

Data Mix of Elevated Inflation Despite Moderating Growth

October 12, 2021

Today’s menu of price data around the world revealed The highest rate of Japanese domestic producer price inflation (6.3%) since September 2008 and also a larger 31.3% year-on-year leap in import prices. The steepest on-year jump in German wholesale prices (13.2%) since June 1974. As then, energy played a prominent role in the spike. The […] More

New Overnight Developments Abroad - Daily Update

Big Jump in Fossil Fuel Prices Marks U.S. Holiday

October 11, 2021

Financial market depth today will be diminished by holidays in Canada (Thanksgiving) and the United States (formerly known as Columbus Day but renamed Indigenous Peoples’ Day in many states). Inflationary concerns around the world are being inflamed by a 3.3% overnight additional leap in the price of WTI oil to around $82/barrel. That price hadn’t […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: October 9 – 15, 2021

October 8, 2021

Central Banks: Monetary policies will be reviewed in South Korea, Sri Lanka, and Chile. FOMC minutes will be published. We’ve also entered a window when President Biden will be revealing his nomination for Fed Chair-person. It could be another 4-year term for Jerome Powell, whose current term ends in January, or somebody else. Four years […] More

New Overnight Developments Abroad - Daily Update

Awaiting U.S. September Jobs Data

October 8, 2021

Equity markets and the dollar stayed in place overnight, pending new clues from the U.S. Labor Dept report. The dollar on balance is unchanged against the euro, loonie, Swiss franc and weighted DXY index. The dollar edged up 0.1% versus the yen, kiwi, and Aussie dollar and down 0.2% relative to the peso and 0.1% […] More

Central Bank Watch

National Bank of Serbia

October 7, 2021

Policymakers at the National Bank of Serbia, unlike several other central banks earlier this month, did not raise their key interest rate at the latest review. Following four reductions totaling 125 basis points between March and December last year, such will remain at a record low of 1.0%. However, an initial snugging of monetary policy […] More

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