Central Bank Watch
August 4, 2022
The Bank of England’s 50-basis point interest rate hike to 1.75% also matched expectations, but the decision was not a unanimous one. Committee member Tenreyro preferred an increase of 25 basis points, the size of the previous four increases done in February, March, May and June. The Bank of England’s initial rate hike last December […] More
Tags: Bank of England
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New Overnight Developments Abroad - Daily Update
August 4, 2022
The dollar edged 0.1% lower against the euro, Swiss franc, and on a weighted DXY basis. The dollar also fell 0.5% versus the New Zealand dollar and 0.3% relative to the Australian dollar. There was no net dollar movement overnight versus the Japanese yen, Chinese yuan or Canadian dollar. The weakest major currency has been […] More
Tags: Bank of England, Canadian trade surplus, Czech National Bank, Euroland construction PMI, German factory orders
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Central Bank Watch
August 3, 2022
The monetary policy committee at the Central Bank of Brazil, known as Copom, today implemented its twelfth interest rate hike since March 2021. After cutting the rate by 250 basis points during 2020, the rate level when normalization began was 2.0%. Seven increases during 2021 had totaled 725 basis points, and today’s move was the […] More
Tags: Central Bank of Brazil
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New Overnight Developments Abroad - Daily Update
August 3, 2022
Investors breathed a sigh of relief that the Pelosi visit to Taiwan is over but continue to worry that adverse geopolitical repercussions will outweigh any symbolic benefits. In its present fragmented political conditions, America could do without the trio of elevated tensions with Russia, China, and the Middle East. Yesterday’s primary U.S. elections demonstrated the […] More
Tags: Composite purchasing manager indices, Euroland retail sales and PPI, National Bank of Georgia, New Zealand labor market statistics
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Central Bank Watch
August 2, 2022
The Reserve Bank of Australia‘s Officials Cash Rate was raised to 1.85% from 1.35%. This was the third straight monthly hike of half a percentage point. An initial 15-basis point move from the record low of 0.10% was done in May. A released statement predicts a further rise in Australian CPI inflation to 7.75% this […] More
Tags: Reserve Bank of Australia
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Central Bank Watch
August 2, 2022
The Central Bank of Armenia had cut its refinancing rate in 2020 to a 10-year low of 4.5%. Increases from May 2021 had totaled 325 basis points by the end of that year and have been followed three more moves so far in 2022: 25 basis points in February, 125 bps in March and 50 […] More
Tags: Central Bank of Armenia
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New Overnight Developments Abroad - Daily Update
August 2, 2022
The game of chicken between House Speaker Pelosi and Chinese President Xi has generated a new run by investors into safer assets. Pelosi appears determined to not scrap her Asian trip stop in Taiwan, and Xi is warning of unspecified reprisals. In overnight market action, share prices closed down 2.4% in Hong Kong, 2.3% in […] More
Tags: Central Bank of Armenia, Pelosi-Xi tension, Reserve Bank of Australia
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New Overnight Developments Abroad - Daily Update
August 1, 2022
The dollar fell overnight by a further 0.5% on a weighted basis and is 3.6% below last month’s multi-decade high. Dollar losses so far this Monday amount to 2.0% against the kiwi, 1.0% versus the yen, 0.7% relative to the Australian dollar, 0.6% vis-a-vis sterling, 0.4% against the euro and peso, and 0.2% versus the […] More
Tags: Euroland unemployment, German retail sales, Manufacturing PMI surveys
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Foreign Exchange Insights and Next Week
July 29, 2022
Central Banks: Monetary policy reviews in the Czech Republic, Australia, U.K., Brazil, India and Georgia. Bank of England Governor Bailey and Reserve Bank of Australia Governor Lowe speak publicly. The quarterly RBA Monetary Policy Statement and Band of England Monetary Policy Report will be published. Monday Holidays: Bank holiday in Australia, Civic Holiday in Canada, […] More
Tags: Economic Data Calendar
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New Overnight Developments Abroad - Daily Update
July 29, 2022
The last business day of each month tends to experience a load of economic data reports, and July has been no exception. A market misconception caused by a policy dynamic fraught with uncertainty that translates into lessening transparency about future policy has complicated the task of reducing inflation. I personally did not think that Powell’s […] More
Tags: Euroland GDP and CPI
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