New Overnight Developments Abroad - Daily Update

Stronger-Than-Forecast U.S. & Canadian Labor Market Reports Reverse Market Momentum

December 2, 2022

North American labor markets again showed great resilience in the face of elevated inflation, tighter monetary policies, and mounting inflation fears. Normally, that would be a good development for financial markets but not, like the present, when central bankers are trying to endow labor  markets with some slack. U.S. share prices had marked time prior […] Read Article

Foreign Exchange Insights and Next Week

Coming Week’s Menu: November 26 – December 2, 2022

November 27, 2022

Central Bank Activity: Monetary policy will be reviewed at the Bank of Thailand, and the Federal Reserve publishes its Beige Book of economic conditions in the twelve separate FRS districts. Powell, Cook, Williams, Evans, Logan and Bowman are some of the Fed officials speaking publicly during the period. European Central Bank President Lagarde and Vice […] Read Article

Central Bank Watch

Interest Rate Hike in Sweden and South Africa

November 24, 2022

The Swedish Riksbank’s repo rate was increased today by 75 basis points to 2.5%, and another increase early in 2023 is also anticipated. Even before the pandemic’s onset, Riksbank officials had experimented with a negative interest rate of as much as -0.50% until a pair  of 25-basis point hikes in December 2018 and December 2019. […] Read Article

Deeper Analysis

November 2022 in Figures

November 30, 2022

The dollar, Bitcoin and long-term interest rates in North America and Europe fell sharply in November, while equities and oil and gold prices climbed substantially. November was an active month  for central banks. In addition to the 75-basis point policy rate hikes shown below at the Fed and Bank of England, monetary benchmark rates were […] Read Article

New Overnight Developments Abroad - Daily Update

Manufacturing in Recession Here, There and Just About Everywhere

December 1, 2022

November purchasing manager surveys released today paint a very gloomy picture, with activity declining at the fastest pace since May 2020 (near Covid ground zero) in the United States (according to both the ISM and S&P Global reports), Brazil, Australia (AIG survey), Turkey, Ireland, Czech Republic, and Sweden. Japan’s PMI index got revised downward and  […] More

New Overnight Developments Abroad - Daily Update

Month-End, Powell’s Speech, and a Whole Lot of Released Data to Digest

November 30, 2022

Investors are awaiting Fed Chairman Powell’s luncheon speech today at the Brookings Institution, scheduled to start at 13:30 EST (18:30 GMT). The last business day of each month typically offers a very heavy menu of released data. November saw the biggest monthly drop  in the dollar in over a decade, as long-term interest rates fell […] More

New Overnight Developments Abroad - Daily Update

Some Upside Data Surprises and Kyrgyzstan’s First Central Bank Rate Cut Since May 2019

November 29, 2022

The dollar traded lower this Tuesday and has so far lost 1.2% against the Aussie dollar, 1.0% relative to the  kiwi, 0.8% versus the Mexican peso, 0.7% vis-a-vis the Chinese yuan, 0.5% against the yen and sterling and 0.3% versus the euro and loonie. The Swiss franc edged 0.1% higher, in contrast. A report out […] More

New Overnight Developments Abroad - Daily Update

World Financial Markets React to Street Protests in China Against Covid Policy

November 28, 2022

A Fresh burst of risk aversion to start the week sent the dollar up 0.8% against the Australian dollar, 0.7% relative to the kiwi, 0.5% versus the loonie and Chinese yuan, 0.4% vis-a-vis sterling, 0.2% against the yen, and 0.1% versus the Swiss franc. The euro notably edged 0.1% higher against the dollar, aided by […] More

New Overnight Developments Abroad - Daily Update

Dollar Recovers Some Ground

November 25, 2022

The dollar rose overnight by 0.6% against the yen, Swiss franc, and both Australian and New Zealand dollars. The dollar also climbed 0.5% versus the euro and 0.4% relative to the Canadian dollar and sterling. U.S. financial markets will close early today at 13:0o EST for equity trading and 14:00 EST (19:00 GMT) in the […] More

Central Bank Watch

Central Bank of Turkey Takes One More Rate Cut for the Road

November 24, 2022

The curious case of monetary policy at the Central Bank of Turkey moved further down the rabbit hole today with a 150-basis point additional drop in the policy rate to 9.0%. That’s ten percentage points below the 19% level that prevailed from March 2021 until September 2o21. This easing has been juxtaposed against accelerating inflation, […] More

New Overnight Developments Abroad - Daily Update

Several Central Bank Policy Meetings Elsewhere on This U.S. Thanksgiving Day

November 24, 2022

With the U.S. observing its quintessentially most unique holiday, the dollar continued to back off from recent highs, dropping 0.3% on a weighted DXY basis  overnight and extending its cumulative decline from peak to 7.8%. The dollar lost 0.9% against the yen today and 0.6% versus sterling but just 0.1% relative to the euro. Prices […] More

Central Bank Watch

Rate Hikes at the Reserve Bank of New Zealand and the Central Bank of Iceland

November 23, 2022

Although not a surprise to investors, the Reserve Bank of New Zealand official cash rate was increased by a larger 75-basis point increment to 4.25%. The prior five changes had been each an increase of a half percentage point. At the start of the tightening cycle in October 2021, the rate  had been just 0.25%. […] More

New Overnight Developments Abroad - Daily Update

November PMIs and Many U.S. Releases Just Before the Thanksgiving Break

November 23, 2022

Japanese are observing their Labor Thanksgiving holiday today, and Americans are getting ready for Thanksgiving, which will see a closure tomorrow and an extended long weekend for many companies. The dollar fell  overnight by 1.0% against sterling, which crossed above the $1.2000 threshold, up from a 2022 low of $1.0349. The dollar also lost 0.7% […] More

New Overnight Developments Abroad - Daily Update

Dollar and Sovereign Debt Yields Lower, while Equities Rebound

November 22, 2022

The dollar  fell overnight  by 0.8% against the Swiss franc, 0.5% versus the yen and sterling and 0.3% relative to the euro, Aussie dollar and loonie. Ten-year sovereign debt yields dropped six basis points in the U.S., four bps in the U.K. but just a basis point in Germany. The DOW and S&P 500 are […] More

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