Foreign Exchange Insights and Next Week
Next Week
January 15, 2016
Holidays and Conferences: U.S. markets are closed Monday for Martin Luther King’s holiday. The World Economic Forum in Davos, Switzerland runs from Wednesday through Friday. Central Banks: Interest rate meetings are scheduled at the European Central Bank, Bank of Canada, and in Turkey, Brazil and Malaysia. Scheduled U.S. Data Releases: Consumer prices, housing starts, building […] More
Central Bank Watch
Central Bank of Chile Retains 3.5% Interest Rate Level
January 15, 2016
Chile’s central bank interest rate had been raised in both October and December of 2015, lifting such from 3.0% to 3.5%. A pause this month was not a surprise, nor is the likelihood of more increases during the first half of 2016. A statement from the Central Bank Board explains the determinant of policy ahead: […] More
Central Bank Watch
Tighter Peruvian Monetary Policy
January 15, 2016
A statement released after a 25-basis point hike of the Central Reserve Bank of Peru’s interest rate benchmark to 4.0% defended the tightening with the following points. Expected inflation exceeds the 1-3% target. So does actual CPI inflation of 4.4% in December. Higher food prices and utility fees plus the effects of new sol depreciation […] More
New Overnight Developments Abroad - Daily Update
Markets Step Closer to the Abyss
January 15, 2016
West Texas Intermediate oil plunged 4.7% overnight on signs that sanctions against Iranian exports will be lifted next week, boosting world supply. Commodity-sensitive currencies like the Aussie and New Zealand dollars (down 1.7% each) and the Canadian dollar (off 0.9% against its U.S. counterpart) fell sharply overnight. China’s Shanghai composite index sank 3.6%, bringing its […] More
