New Overnight Developments Abroad - Daily Update
First Night
December 31, 2014
On the final day of the year, also known as First Night, the HSBC manufacturing purchasing survey of China for December was reported to have fallen by 0.4 points to an eight-month low of 49.6. This was not only the first month since April in which manufacturing activity contracted, as attested by the sub-50 score, […] More
New Overnight Developments Abroad - Daily Update
Stronger Yen as End-2014 Draws Closer
December 30, 2014
The dollar fell 1.0% against the Japanese yen on balance and got as strong overnight as 119.18 at one point, its best level since December 19. The yen was buoyed by the Bank of Japan’s announcement that it will be buying JGBs with longer maturities. The yen’s overnight high against the euro was 145.11. The […] More
Central Bank Watch
Bank of Israel Interest Rate Policy Continues in Extended Pause
December 29, 2014
Israel’s central bank interest rate of 0.25% over the past four months is not likely to change in 2015 according to the latest Bank of Israel statement that defends today’s decision not to modify policy. The Bank of Israel interest rate is expected, according to the staff forecast, to remain at 0.25 percent throughout 2015 […] More
New Overnight Developments Abroad - Daily Update
More Stimulus in China and Japan but a Political Turn for the Worse in Greece
December 29, 2014
Japanese Prime Minister Abe has approved a 3.5 trillion fiscal stimulus (roughly $29 billion) as part of a supplementary fiscal 2014 budget. The extra spending will help small businesses among other things. To provide more liquidity into China’s money market, the central bank there loosened rules governing the bank loan-to-deposit ratios of non-deposit-taking financial institutions. […] More
Foreign Exchange Insights and Next Week
Next Week
December 26, 2014
Aside from a slew of manufacturing purchasing manager surveys for December, little is scheduled next week in the way of released data or central bank watching. Only the Bank of Israel has a scheduled interest rate meeting. No holiday closure is more widely shared than New Year’s Day, and Japan’s market will be shut on […] More
New Overnight Developments Abroad - Daily Update
Holiday Conditions Continue
December 26, 2014
Many European markets stayed shut Friday for Boxing Day or St. Stephens Day. Members of the Commonwealth are also closed. The biggest share price movements were a 3.3% rebound in China’s market and a rise in Russia. Japan’s Nikkei edged up 0.1% in spite of some disappointing data. U.S. shares have risen in futures trading. […] More
New Overnight Developments Abroad - Daily Update
A Respite from Market Activity
December 25, 2014
Virtually all markets other than Japan are closed for Christmas today, so currency changes on the wires are not necessarily representative. The dollar fell overnight by 0.6% against the Swiss franc, 0.4% relative to the euro, 0.3% vis-a-vis the yen, 0.2% versus the Australian dollar and 0.1% against the kiwi and sterling. The yuan rose […] More
Central Bank Watch
Central Bank of Turkey Maintains Tight Monetary Policy Settings
December 24, 2014
As expected, monetary officials in Turkey left their overnight lending rate at 11.25%, the overnight borrowing rate at 7.5%, and the key one-week repo rate at 8.25% after December’s policy review. Inflation hovering near 9% is well above next year’s desired 6%, but a released statement today expresses optimism that inflation will recede at a […] More
New Overnight Developments Abroad - Daily Update
Little to Report on the Day Before Christmas
December 24, 2014
Deja Vu Item: In a different suburb of St. Louis, Missouri, there’s been another fatal shooting of a black youth by a white cop. The dollar edged 0.2% lower overnight against the yen, euro, Swissie, kiwi and sterling and also slid 0.1% versus the loonie, Australian dollar and yuan. Many markets closed early for Christmas […] More
Foreign Exchange Insights and Next Week
In the Year 2015
December 23, 2014
2014 has been a broadly based year of strength for the U.S. dollar, and that can only be said for a minority of time during the past four decades. Compared to its lows this year of 1.0601/AUD, JPY 101.39, 1.3993/EUR, CHF 0.8696, 0.8677/NZD, 1.7791/GBP, and CAD 1.0583, the U.S. currency is currently up by 30.9% […] More
