Central Bank Watch
Magyar Nemzeti Bank Winds Up Interest Rate Reduction Cycle
July 22, 2014
Hungary’s central bank declared an end to a 2-year easlng cycle after cutting the key rate by more than expected. A greater-than-forecast reduction of 20 basis points in the bank interest rate to 2.1% put an end to a streak of cuts that included 12 reductions of 25 basis points, 6 of 20 bps, 2 […] More
New Overnight Developments Abroad - Daily Update
Less Risk Aversion
July 22, 2014
Now that Ukraine rebels are handing over the bodies of Flight 17 victims, investors are less fearful about an escalating cold war between Russia and Western powers. Share prices climbed 1.7% in Hong Kong and India, 1.2% in China, 0.8% in Japan, 0.6% in Taiwan, 0.5% in South Korea and 0.1% in New Zealand, Australia […] More
New Overnight Developments Abroad - Daily Update
Light Day of Data Leaves Market Focus on Geopolitical Risk
July 21, 2014
There’s continuing momentum to impose harsher economic sanctions on Russia over the downing of Malaysian Airlines Flight 17 in Ukraine. Israel’s ground invasion of Gaza intensified over the weekend. The dollar is unchanged against the euro, yuan and sterling. It has dipped 0.1% against the yen, Swissie and kiwi but risen by 0.5% versus the […] More
Larry's Blog
Blast from the Past with Lessons for the Present and Future
July 20, 2014
I’ve accumulated way too much paper stuff in my four decades as a currency market watcher and, out of necessity, find myself culling files on a lot of weekends. This is generally tedious work, but every once in a while I find something I wrote that represents a career milestone as I did today. It’s […] More
Uncategorized
Next Week
July 18, 2014
Central banks in New Zealand, Hungary, Russia and Colombia have scheduled interest rate policy meetings next week, and minutes from this month’s Bank of England meeting get published. Reserve Bank of Australia Governor Stevens speaks publicly. Japan will be closed on Monday for Marine Day. A G20 taskforce on employment meets in Brisbane, Australia Tuesday-Thursday. […] More
New Overnight Developments Abroad - Daily Update
Geopolitical Tensions Overhang Market
July 18, 2014
Markets are on edge following the downing of Malaysian Airlines Flight 17 in Ukraine by a surface to air missile, the invasion of Gaza by Israeli ground troops, and augmented trade sanctions against Russia by the EU and United States. If anything is going to break the low volatility environment in the marketplace, this toxic […] More
Central Bank Watch
South African Reserve Bank Tightens
July 17, 2014
As in Turkey, whose central bank cut interest rates earlier today, South Africa faces the dilemma of both weak growth and excessive inflation. In South Africa’s case, however, the decision was to tighten slightly. The repo rate, which was increased by 50 basis points six months ago, was this time raised 25 basis points to […] More
Central Bank Watch
Turkish Monetary Policy Eased Again
July 17, 2014
Following cuts of 50 basis points in May and 75 bps in June, the Monetary Policy Committee at the Central Bank of the Republic of Turkey authorized a 50-basis point cut of its one-week repo rate. The overnight borrowing rate, which hadn’t been changed at those two earlier meetings, was this time sliced to 7.5% […] More
Central Bank Watch
Central Bank of Brazil Keeps 11% Selic Interest Rate
July 17, 2014
The 184th meeting of Copom, Brazil’s monetary policy committee, voted unanimously to leave its Selic interest rate at 11.0% and released a replica of the prior May 28th meeting statement that also decided unanimously to keep the rate steady. These terse, 92-word communications convey very scant information particularly with regard to any future decisions. All […] More
New Overnight Developments Abroad - Daily Update
Geopolitical Risk Weighs on Share Prices
July 17, 2014
The U.S. and Europe imposed further economic sanctions against Russia in protest of its meddling into Ukraine affairs. Russia led European stocks and U.S. futures lower. Fighting between Israel and Hamas and the ISIS insurgency in Iraq are causing additional geopolitical worry. Investors remain confused about Fed forward guidance. Share prices are down 1.0% in […] More
