Archive for February 1st, 2016

Central Bank Watch

Central Bank of Colombia

February 1, 2016

Colombian monetary policymakers like to change their interest rate in consecutive monthly moves.  From 5.25%, the rate was sliced by 25 basis points each in July and August, followed by five straight cuts totaling 150 basis points from November 2012 through March 2013.  When an initial 25-basis point rate hike was done a year later […] More

Foreign Exchange Insights and Next Week

Tougher Dollar Sledding Against the Euro and Yen

February 1, 2016

The strong dollar performance of 2015 carried over into the first month of 2016 against a large number of currencies.  Appreciation last month was most pronounced against commodity sensitive currencies and emerging economy monies and also included the performances against the Swiss franc and sterling. The dollar’s two most influential relationships moved only slightly on […] More

Deeper Analysis

First Favorable Shift in U.S.-Minus-Eurozone Factory PMI Since May

February 1, 2016

The U.S. manufacturing purchasing managers index edged up 0.2 points to 48.2 in January.  Not since August has the reading been above 50.0, the breakeven line between improving and deteriorating conditions.  Jobs registered a 2.1-point slide to 45.9, indicating a significantly faster rate of jobs loss.  The prices index was only 33.5 for a second […] More

New Overnight Developments Abroad - Daily Update

Most Stock Markets Head Back Lower

February 1, 2016

Share prices fell 1.8% in China, 1.0% in Singapore, 0.4% in Hong Kong and 0.2% in India.  European equities are so far down 1.1% in Germany, France, and the U.K., 0.8% in Italy a and 0.3% in Switzerland and Spain.  Stocks rose 2.0% in Japan, 0.8% in Australia and 0.7% in South Korea. Ten-year sovereign […] More