Deeper Analysis
February in Figures
February 28, 2015
The short month of February lacked a consistent story to tie around different asset market classes. Share prices appreciated across the board, but the dollar underwent mixed and rather diverse changes ranging from a 3.8% rise against the Swiss franc to a similarly-sized depreciation versus the New Zealand dollar. U.S. and British long-term interest rates […] More
Foreign Exchange Insights and Next Week
Next Week
February 27, 2015
Central Banks: The ECB holds its second monetary policy meeting of 2015. Under a new framework, there will be eight such scheduled meetings in 2015 instead of one each month as done before. Monetary policy meetings are also scheduled in Canada, Great Britain, Brazil, Australia, Poland, and Malaysia. The Federal Reserve Beige Book, which assesses […] More
New Overnight Developments Abroad - Daily Update
Europe Gets Better News on Inflation
February 27, 2015
Increasing domestic political rumbling in Greece sent share prices there down 4.1% and lifted the 10-year government bond yield by six basis points. The parliament in Germany approved the recent agreement to extend the bailout aid timetable by four months. The dollar is mostly softer, with overnight losses of 0.5% against the Swiss franc, 0.4% […] More
New Overnight Developments Abroad - Daily Update
Busy Day of Data
February 26, 2015
A surprise 2.2% decline in Australian private investment last quarter rekindled speculation about an interest rate cut by the RBA. British GDP grew 0.5% last quarter and 2.7% from the final quarter of 2013. Average growth accelerated from 1.5% in 2013 to 2.6% last year. The slowdown of growth in the final quarter from 0.7% […] More
Foreign Exchange Insights and Next Week
Dollar Strength Depends on One’s Frame of Reference
February 25, 2015
The dollar has already gained considerable ground against a broad cross-section of other currencies, propelled by relatively strong U.S. growth and the divergent direction of monetary policy guidance from the Fed and the policy outlook for many other central banks that have recently loosened their credit stances and are signaling a bias favoring more support. […] More
Central Bank Watch
Central Bank of Sri Lanka
February 25, 2015
Sri Lankan central bank interest rates haven’t changed in slightly over a year. The Standing Lending Facility Rate has been at 8.0% since a 50-basis point cut in January 2014, and Standing Deposit Facility rate has been 6.5% since it was last reduced in October 2013. As inflation receded, both rates were cut by a […] More
New Overnight Developments Abroad - Daily Update
Positive Reaction to Tuesday’s Yellen Testimony and China Reopens
February 25, 2015
Today is a quiet day from a data-release standpoint, so investors will be looking to testimonies by Fed Chairperson Yellen and ECB President Draghi for direction. Yellen reprises yesterday’s Humphrey-Hawkins semiannual appearance before congress, this time testifying to the House Financial Services Committee. Draghi will be speaking before the EU parliament. The ECB took a […] More
Central Bank Watch
Magyar Nemzeti Bank Still in Pause Bode But…
February 24, 2015
During the two years through last July, Hungary’s central bank policy rate was lowered by 490 basis points to the current level of 2.10%. Seven months have now passed since the last policy modification. Today’s released policy statement, however, puts markets on notice to the possibility of a further easing of the stance as soon […] More
Central Bank Watch
Central Reserve Bank of the Republic of Turkey Eases Only Slightly
February 24, 2015
Cuts today in Turkey’s one-week repo rate, overnight lending rate, and overnight borrowing rate were anticipated but are too small to assuage the frustration of a government that faces parliamentary elections in June, prefers rates to be considerably lower especially since Turkish inflation has fallen to a 20-month low of 7.24%, and has increasingly gone […] More
New Overnight Developments Abroad - Daily Update
Awaiting Janet Yellen’s Semi-Annual Humphrey-Hawkins Testimony
February 24, 2015
Day One of Fed Chair Yellen’s testimony on the economy and monetary policy begins at 10:00 before the Senate Banking Committee. On Wednesday, she will reprise the testimony before the House Financial Services Committee. The testimony comes amid rising Congressional hostility to an independent central bank. Indeed, a major question before the American people in […] More
