Deeper Analysis
June and the Second Quarter in Figures
June 30, 2015
The dollar against currencies in the table below closed mixed both in June and for the second quarter. Long-term interest rates advanced pretty substantially, but short-term rates barely moved. Equities had a difficult month, recording the bulk of their declines in the final days of the month, but the performance in the whole quarter was […] More
New Overnight Developments Abroad - Daily Update
Quarter-end Data Deluge
June 30, 2015
The dollar is trading with overnight gains of 1.4% against the kiwi, 0.5% relative to the euro and Swiss franc and 0.1% vis-a-vis sterling. It is unchanged versus the yen and Australia and dollar and down 0.1% against the loonie and yuan. Stocks in China rebounded by a big 6.7%, buoyed by a liquidity injection […] More
Central Bank Watch
Easier Chinese Monetary Policy
June 29, 2015
The People’s Bank of China announced several policy-easing steps over the weekend. The one-year lending rate was cut to 4.85% from 5.10%. Prior reductions in in November, February and May had trimmed the rate by a total of 140 basis points from 6.00%, and there were also single cuts of 25 basis points and 31 […] More
New Overnight Developments Abroad - Daily Update
Post-Greek Spike in Dollar Not Sustained
June 29, 2015
Greece and China made big news over the weekend. First from Greece: PM Tsipras threw world financial markets a curve ball, vesting the country’s decision on whether to comply with the terms of the creditors in the hands of the people to be decided by referendum next Sunday, July 5. If his intent was in […] More
Foreign Exchange Insights and Next Week
Next Week
June 26, 2015
Central Banks: Interest rate policy meetings at Swedish Riksbank and National Bank of Romania. Bank of England Financial Stability Report and ECB “Account” of Governing Council meeting get published. Reserve Bank of Australia Governor Stevens delivers a speech. Holidays: Canada Day on Wednesday and U.S. Independence Day (observed) on Friday. Special Events: Greek $1.5 billion […] More
New Overnight Developments Abroad - Daily Update
Big Drop in Chinese Stock Market and an Unresolved Greek Debt Crisis
June 26, 2015
Equities slumped 7.9% in China, 2.3% in Hong Kong, 1.5% in Australia, 0.9% in Singapore but fell just 0.3% in Japan. Greece dominates today’s meeting of eurozone finance ministers, which will be followed by a 2-day summit of EU leaders. The Greek government never resubmitted a revised reform plan, after Monday’s offering was rejected by […] More
Central Bank Watch
Czech National Bank More Upbeat Regarding Economic Trends but No Change in Policy
June 25, 2015
The latest CNB Board’s policy statement conveys three messages: The Czech economy is experiencing stronger growth and faces a reduced deflationary risk. Board members voted unanimously not to change monetary policy settings. The commitment not to tighten policy settings before the second half of 2016 remains intact. The Czech interest rate has been at 0.05% […] More
Central Bank Watch
No Changes to Filipino Monetary Policy After Latest Board Meeting
June 25, 2015
Not only did the Monetary Board leave the 4.0% overnight borrowing rate, 6.0% overnight lending rate and reserve requirements unchanged after its latest policy meeting, but it also released a statement that reiterates virtually identically the points summarized in my review of the prior meeting held on May 14. Officials at Bangko Sentral ng Pilipinas […] More
New Overnight Developments Abroad - Daily Update
Greek Talks Looking Grim
June 25, 2015
Daybreak on Thursday brings news of an ultimatum to the Tsipras government from its Troika of creditors, not the breakthrough that investors had been hoping to hear. The deadline has already passed. Final decision now moves on to eurozone finance ministers, who meet later this day, but the outlook for a deal does not appear […] More
Foreign Exchange Insights and Next Week
Markets Doomed to Be Always Waiting for Something
June 24, 2015
For the record, the past statement week from Wednesday to Wednesday was a good one for the dollar, which appreciated at two speeds. Advances of 1.4% to 1.8% were clocked against the euro, Swiss franc, Canadian dollar and New Zealand and of 0.7% were accrued against the yen, Australian dollar and sterling. The dollar’s strength […] More
