Archive for July 27th, 2015

Foreign Exchange Insights and Next Week

The Dollar, Fed Policy and Falling Equities and Commodities

July 27, 2015

One possible explanation for the stalled dollar advance was offered in last week’s Foreign Exchange Insights essay, namely contrasting current account positions in the United States on the one hand and the eurozone and Japan on the other.  This week scopes out three other factors that may limit the U.S. currency’s strength. The first factor […] More

Central Bank Watch

Bank of Israel

July 27, 2015

The key central bank interest rate was left at 0.10%, its level since a cut of 15 basis points in February.  There were three reductions of 25 basis points each in 2014, the latest of which occurred in August.  75 basis points each were cut in 2011, 2012, 2013 from an end-2010 level of 3.25%.  […] More

New Overnight Developments Abroad - Daily Update

A Collapse in Chinese Equities

July 27, 2015

An 8.5% drop in the Chinese Shanghai Composite Index was the biggest daily decline since February 2007 and depressed investor sentiment in other markets, where stocks fell 4.0% in Hong Kong, 2.4% in Taiwan, 2.0% in India, 1.8% in Indonesia 1.2% in Singapore and 1.0% in Japan.  In European trading, equities are down already by […] More