New Overnight Developments Abroad - Daily Update
Draghi, Yellen and Greece in the News
July 16, 2015
Not much data were released in Asia and Europe today. ECB President Draghi’s press conference at 12:30 GMT will be dominated by questions about Greece. As expected, ECB interest rates were left unchanged by the Governing Council. The refinancing rate, deposit rate, and marginal lending rate stay at 0.05%, -0.20%, and 0.30%. With violent protests […] More
Central Bank Watch
Bank of Canada Monetary Policy Stance Eased for Second Time This Year
July 15, 2015
A famous Monty Python skit produced the line, “Nobody expects the Spanish inquisition,” and the idea applies equally well to the forecasts of public authorities particularly central banks when it comes to forewarnings about coming recessions. In cutting the overnight money target by 25 basis points to 0.50% today, Bank of Canada officials published an […] More
Central Bank Watch
Bank of Japan Left Policy Settings Unchanged But Cut Growth and Inflation Forecasts
July 15, 2015
There’s been another 8-1 Board decision to continue the open-ended quantitative and qualitative monetary stimulus, buying JPY 80 trillion of long-dated JGBs per year until 2.0% core inflation is secured and deemed maintainable. The decision was as expected. Policy stimulus is not expected to be augmented before October, if then. That will be the occasion […] More
New Overnight Developments Abroad - Daily Update
Dollar Stronger on this Day of Important Developments
July 15, 2015
The dollar hit a high of $1.0954 per euro, strongest since July 7 and 4.4% above its June 18 low. The euro has also weakened against sterling is is barely remaining above 0.7000 per pound. Compared to Tuesday closing levels, the dollar has risen 0.7% against the Swiss franc, 0.5% versus the kiwi, 0.4% vis-a-vis […] More
Central Bank Watch
Bank Indonesia
July 14, 2015
The BI interest rate benchmark was again kept at 7.5%. The 5.5% deposit rate and 8.0% lending facility rate were likewise not changed at the July Policy Board meeting. In a a compressed span between June and November 2013, the BI rate was lifted by 175 basis points to its present 7.5%. Last November, officials […] More
New Overnight Developments Abroad - Daily Update
Greek Dismay and a Nuclear Deal Reached with Iran
July 14, 2015
The price of West Texas Intermediate crude oil fell 2.1% to $51.12 per barrel on news that deal was reached to greatly relax economic sanctions on Iran in exchange for constraints on Iranian nuclear production and enhanced western access to inspecting Iranian facilities. The agreement follows nearly three weeks of intense talks and is opposed […] More
New Overnight Developments Abroad - Daily Update
Eurozone Leaders Announce Agreement in Principle on a Greek Bailout
July 13, 2015
A third financial bailout for Greece contingent on the Greek parliament passing a long list of stringent economic reforms by Wednesday, July 15 was hammered out after around-the-clock weekend talks in Brussels that did not end until Monday morning. The deal includes higher VAT on restaurants, higher taxes on Greek shipping companies, ending tax breaks […] More
Foreign Exchange Insights and Next Week
Next Week
July 10, 2015
Greek Debt Crisis: It’s crunch time. Tomorrow and Sunday, finance ministers and political leaders hold meetings to consider whether to accept the Greek proposal. July 20, when Greece owes a payment to the ECB, is the absolute latest date to have a deal and avert default. Central Banks: Monetary policy meetings are scheduled next week […] More
Central Bank Watch
Central Reserve Bank of Peru
July 10, 2015
Peru’s central bank Board kept its interest rate benchmark at 3.25%, which lies below the level of inflation even though inflation accelerated from 3.0% in April to 3.54% in June and despite an uptick also in expected inflation that was observed recently. Four reductions of 25 basis points in the interest rate were engineered in […] More
New Overnight Developments Abroad - Daily Update
Possible Game-Changer in the Greek Debt Crisis
July 10, 2015
The latest Greek proposal of reforms for financial support contains a broad range of concessions that go beyond what Greek voters overwhelmingly rejected by referendum. It includes such areas that were taboo until now such as higher VAT on restaurants, pension reform, labor market reform, and a corporate tax hike. In return, Greece would get […] More
