New Overnight Developments Abroad - Daily Update
Heavier Flow of Data Releases
November 13, 2014
The dollar is narrowly mixed. Equities fell 1.4% in Australia, 0.6% in China, 0.5% in New Zealand and 0.3% in South Korea but climbed 1.1% in Japan and 0.7% in Singapore and Taiwan. In Europe, stocks are down 0.6% in Italy and 0.4% in Spain but up 0.5% in Germany and Switzerland and 0.1% in […] More
Foreign Exchange Insights and Next Week
Dollar Uptrend Substantial Already
November 12, 2014
Despite deepening concern about the euro area’s economic outlook, the dollar’s recovery versus the euro understates the U.S. currency’s overall turnaround. EUR/USD had declined slightly less than 10% since the start of 2014 but only 5.5% since the end of 2012. Almost 7/8ths of a 33% plunge in the Russian ruble since end-2012 happened this […] More
New Overnight Developments Abroad - Daily Update
Weaker Pound and Dollar
November 12, 2014
Sterling fell 0.5% against the dollar, which has otherwise depreciated 0.8% relative to the kiwi, 0.3% versus the euro, 0.2% vis-a-vis the yen and Australian dollar and 0.1% against the loonie. The Swiss franc at 1.2022 per euro moved nearer to the 1.2000 ceiling that Swiss National Bank officials promise unlimited intervention to prevent further […] More
New Overnight Developments Abroad - Daily Update
Spotlight on Japan and APEC Meetings
November 11, 2014
Dollar/yen hit a new high for the move of 116.12 and shows a net overnight advance of 0.9%. The yen also touched a low of 144.02 per euro. The Japanese Nikkei gained 2.1%, supplanting 17K to 17,124. The ten-year Japanese JGB yield rose four basis points to 0.48%. Greater optimism toward Japan’s outlook has followed […] More
New Overnight Developments Abroad - Daily Update
Focus on China and Russia and a Softer Dollar
November 10, 2014
The annual summit of APEC leaders began in Beijing. Chinese President Xi met with Japanese Prime Minister Abe and agreed to a framework for handling geopolitical crises between the two Asian powers. A stock trading link between China and Hong Kong was finalized and will be launched on November 17th. China also reported October price […] More
Foreign Exchange Insights and Next Week
Next Week
November 7, 2014
Monetary policy meetings are planned next week in Norway, South Korea, Indonesia, Peru and Serbia. The Bank of England will publish its quarterly Inflation Report, and Rosengren, Kocherlakota, Bullard and Plosser are some of the Fed officials with speaking engagements. National consumer price data will be reported for China, Denmark, Norway, the Czech Republic, Greece, […] More
New Overnight Developments Abroad - Daily Update
More Trouble in Ukraine
November 7, 2014
Fighting has intensified in Ukraine, lending a more guarded mood to investor sentiment. While the rhetoric of ECB President Draghi’s comments Thursday were bearish, investors are asking, where’s the beef? The dollar is marking time ahead of the U.S. monthly labor force report. The greenback is unchanged against the yen and kiwi and down 0.3% […] More
Central Bank Watch
Czech National Bank
November 6, 2014
The Czech central bank extended its exchange rate policy past end-2015 and retained a virtual zero interest rate policy after this month’s policy meeting. The two-week repo rate has been at 0.05% for the past two years. A year ago this month when more stimulus was needed but room to cut interest rates no longer […] More
Central Bank Watch
Central Bank of Malaysia: No Further Rate Change
November 6, 2014
Malaysia’s operating policy rate had been lifted from a base of 2.0% by 25 basis points each in March 2010, May 2010, July 2010, May 2011 and, most recently, July of this year. A statement from officials today defends the existing accommodative yet appropriate policy. It observes that “while the moderating trends [in exports and […] More
Central Bank Watch
Bank of England: Nothing New to Report
November 6, 2014
The Bank of England’s monthly meeting of the Monetary Policy Committee ended with the announcement of no new policy setting and notification that people interested in learning about the committee’s latest thinking should refer to the quarterly Inflation Report that arrives November 11 and minutes of the just completed policy meeting that will be published […] More
