New Overnight Developments Abroad - Daily Update
Steady Dollar in Spite of Many Data Releases
June 27, 2014
The dollar is down 0.3% against the yen, 0.2% versus the Swiss franc and 0.1% relative to the euro and yuan. The dollar is unchanged vis-a-vis the loonie and 0.2% firmer against the kiwi and up 0.1% against the Aussie dollar and sterling. Japan’s Nikkei fell 1.4% after some disappointing Japanese data. Although CPI inflation […] More
New Overnight Developments Abroad - Daily Update
Aftermath of U.S. GDP Shocker
June 26, 2014
Markets continue to ponder the implications of yesterday’s announced revision in U.S. GDP last quarter to a contraction of 2.9% from previous estimates of -1.0% made in May and +0.1% made in April. After such a weak start to 2014, GDP will not expand as much as presumed previously in full-2014. Slack in the U.S. […] More
New Overnight Developments Abroad - Daily Update
Fresh Worries about Iraq and Ukraine
June 25, 2014
Risk-off psychology staged a return. Stock prices and sovereign debt yields are lower. So are emerging market currencies like the Indonesian rupiah. However, the dollar is generally steady, and oil and gold prices are higher. Sunni rebels control more of Iraq territory. The cease-fire in Ukraine was violated by pro-Soviet rebels. U.S. 1Q GDP […] More
Central Bank Watch
Streak of Hungarian Central Bank Rate Cuts Extended With Another 10-Basis Point Reduction”
June 24, 2014
Monetary policy was eased for a 23rd straight month. The key rate of 2.3% is down from 7.0% prior to August 2012. The move was justified by low inflation, lessening risk factors, and monetary easing at the ECB, and the statement indicated that more easing is probable. “Considering the outlook for inflation and taking into […] More
New Overnight Developments Abroad - Daily Update
Little Overnight Change in the Dollar
June 24, 2014
It’s been another quiet summer session in the dollar, which has changed on net by 0.3% or less. Share prices rose 1.4% in India and 1.0% in South Korea but hardly at all elsewhere. The Nikkei closed up 0.1%, and the German Dax is off 0.1%. The 10-year British gilt yield of 1.74% is sharply […] More
New Overnight Developments Abroad - Daily Update
Mixed PMI Signals
June 23, 2014
The dollar has fallen 0.9% against the Australian dollar, 0.4% versus the kiwi, 0.3% vis-à-vis the yen, and 0.1% relative to the loonie. The U.S. currency is unchanged against the Swiss franc, yuan and sterling and has risen 0.1% against the euro. A 1.7% drop in the Hang Seng index was the largest daily decline […] More
Foreign Exchange Insights and Next Week
Next Week
June 20, 2014
Central bank monetary policy meetings will be held next week in Israel, Brazil, Turkey, the Czech Republic, Taiwan and Hungary. The Governors of the Bank of England and the Bank of Japan have public speaking engagements, as to Federal Reserve regional bank presidents Plosser, Bullard and Lacker. Political leaders in the European Union hold their […] More
New Overnight Developments Abroad - Daily Update
Not Much Happening at the Solstice
June 20, 2014
The dollar is up 0.3% against the kiwi and shows upticks of 0.1% versus the euro, yen, Swissie, sterling, and Australian dollar. The dollar is 0.1% softer relative to the yuan. The ten-year British gilt yield firmed three basis points. The equivalent German bund is a basis point higher, but the Japanese JGB dipped a […] More
Foreign Exchange Insights and Next Week
Early Days in a Newly Perceived Threat to Currency Market Stability
June 19, 2014
A lack of meaningful currency market movement this year among the major advanced pairs like EUR/USD and dollar/yen has been one element of a broader dampening of volatility in all sorts of financial markets. Many commentators have noted that often such stability came before disruptive crises, and the worry that we may be in a […] More
Central Bank Watch
Filipino Monetary Policy Tweaked as SDA Interest Rate is Raised to 2.25%
June 19, 2014
Inflation risks in the Philippines are skewed to the upside because of El Nino, which has generated weather extremes that could elevate food and utility costs. The baseline inflation forecast sees consumer prices hovering in the upper part of this year’s 3-5% target band and falling within next year’s corridor of 2.4%. Accordingly, the overnight […] More
