New Overnight Developments Abroad - Daily Update
Mixed Data and a Couple of Central Bank Meetings
July 23, 2013
The dollar rose 0.4% against the yen, drawing very near the 100 threshold. The dollar otherwise has dropped 0.3% against the loonie, which was supported by strong Canadian retail sales figures. The dollar has firmed 0.2% against the Swiss franc and 0.1% versus the kiwi and Aussie dollar but has edged down 0.1% relative to […] More
New Overnight Developments Abroad - Daily Update
LDP-Komeito Coalition Secures Upper House Japanese Parliamentary Election
July 22, 2013
Prime Minister Abe’s party, the Liberal Democrats, will hold 115 of the 242 upper chamber seats. The LDP’s junior partner, New Komeito, will hold 20 seats. Thus the ruling coalition now controls a comfortable majority of 135 seats, up from 102 seats in the previous parliament. The coalition will control key committees. This marks the […] More
Foreign Exchange Insights and Next Week
Next Week
July 19, 2013
Central bank interest rate policy meetings next week are scheduled in Hungary, the Philippines, Turkey and New Zealand. Voters in Japan select their representatives in the upper chamber of parliament. The Abe government also releases its July economic assessment. Scheduled U.S. economic data releases cover existing and new home sales, the Richmond and Kansas City […] More
Foreign Exchange Insights and Next Week
Diverse Movements in Foreign Exchange
July 19, 2013
Great stability around the $1.30 level continues to characterize the key EUR/USD relationship. Coming into 2013, the euro was expected to trade considerably weaker than this threshold. For the past several years, in fact, there have been analysts predicting a return to par, based on Europe’s relatively weak economy, the fragility of Europe’s banks, and […] More
New Overnight Developments Abroad - Daily Update
Equities Closing Week on a Down Note
July 19, 2013
Microsoft and Google reported weaker-than-expected earnings, sending both stocks lower in after-hours trading. Japan’s upper house election on Sunday and ongoing worries about the extent of China’s slowdown are other uncertainties. In his reprised testimony before the senate Thursday, Fed Chairman Bernanke continued to send a mixed, and therefore somewhat confusing, message. While not backing […] More
Central Bank Watch
South African Reserve Bank: No Interest Rate Change Satisfies Expectations
July 18, 2013
The last cut the South African repo was implemented a year ago in July 2012. The decrease of 50 basis points to a 40+ year low of 5.0% culminated a ten-step 700-basis point easing from 12.0% prior to December 2008. South African officials remain constrained by weak economic growth on the one hand and a […] More
New Overnight Developments Abroad - Daily Update
Chinese Yuan Weaker
July 18, 2013
Chinese monthly house price data revealed continuing upward pressure. Related to this, officials set the yuan at its weakest level in ten days. British retail sales figures exhibited greater-than-anticipated strength. Fed Chairman Bernanke will be reprising yesterday’s semi-annual testimony before the Senate Banking Committee today. On Wednesday, he asserted that no pre-announced tapering path of […] More
Central Bank Watch
Central Reserve Bank of Peru Keeps 4.25% Reference Interest Rate
July 17, 2013
The last change in the key Peruvian central bank rate was a 25-basis point increase in May 2011 that culminated four percentage points of tightening in 2010-11. A statement from monetary officials predicts continuing in-target inflation and observes that Peruvian GDP has continued to expand close to its sustainable long-term trend in spite of global […] More
Central Bank Watch
Fed Chairman Succession Timelines
July 17, 2013
It seems nearly certain that Ben Bernanke will not serve a third consecutive four-year term as Fed Chairman. His stewardship ends on January 31, 2014. Fed Chairmen are appointed by the president, subject to senate confirmation. Bernanke’s immediate predecessors were Paul Volcker and Alan Greenspan. The selection of Greenspan was announced by President Reagan on […] More
Central Bank Watch
Dovish Policy Mind-Set at Bank of Canada
July 17, 2013
Canadian monetary officials, now led by Stephen Poloz, decided to keep the overnight money rate target at 1.0%, its level since September 2010. In a released statement, they were less equivocal in predicting that the rate will remain at 1.0%. The forecast is still a conditional one, hinging on slack in the economy, a muted […] More
