New Overnight Developments Abroad - Daily Update
Sterling’s the Biggest Loser Against a Strengthening Dollar
February 22, 2016
Sterling fell 2.0% against the U.S. currency, which also has risen 0.9% against the euro, 0.8% relative to the Swiss franc and 0.5% vis-a-vis the yen. Emerging market currencies and commodity-sensitive monies have also performed well this Monday. The U.S. dollar lost 1.1% against the Aussie dollar, 0.4% versus the kiwi, 0.5% against the rand […] More
Foreign Exchange Insights and Next Week
Next Week
February 19, 2016
Central Bank Activity: Interest rate policy meetings in Israel, Hungary, and Turkey. Officials speaking in public: Debelle of Reserve Bank of Australia; Praet, Nouy and Lauteuschlager of the ECB; Kiuchi of Bank of Japan; Jordan of the Swiss National Bank; Bullard, Lockhart and Williams of the Federal Reserve; and Schembri of the Bank of Canada. […] More
New Overnight Developments Abroad - Daily Update
Friday Down-Note to End an Up Week
February 19, 2016
Stock markets and sovereign debt yields overnight followed oil lower. West Texas Intermediate crude oil fell 1.8% to $30.23 per barrel. Ten-year British gilts, German bunds, and Japanese JGB yields dropped by six, two and one basis points. The Japanese Nikkei-225 slumped 1.4%, slipping back under the 16K level. Elsewhere in the Pacific Basin, share […] More
Central Bank Watch
Another Indonesian Central Bank Interest Rate Cut
February 18, 2016
Policymakers at Bank Indonesia reduced the BI rate, the lending facility rate and the deposit facility rate by 25 basis points each to 7.0%, 7.5% and 5.0%. This was the third decline in a year, after similarly-sized moves in February 2015 and January 2016. Officials also cut the primary reserve requirement by a full percentage […] More
New Overnight Developments Abroad - Daily Update
Expressions of Concern
February 18, 2016
St. Louis Fed President Bullard, who had previously been urging interest rate normalization, gave a speech warning that further rate hikes would be risky in light of the continuing decline of market-based indicators of expected inflation and because a buildup of unhealthy asset bubbles has become less probable. A member of the Bank of Japan’s […] More
Foreign Exchange Insights and Next Week
The Year is Still Young, Yet Already Full of Surprise
February 17, 2016
The first eighth of 2016 was eventful. The surprises are not limited to China and other developing economies, either. Financial markets have been very volatile. Although near the middle of its high-low range thus far, the price of oil is down around 16% on balance, and gold is more than $100 above its end-2015 level. […] More
New Overnight Developments Abroad - Daily Update
Dovish Remarks from a Federal Reserve President
February 17, 2016
Boston Fed President Eric Rosengren gave a speech overnight that warned of long-lasting effects on inflation from the plunge of energy prices and predicted that such could impeded efforts to raise U.S. interest rates. Rosengren is one of the more dovish FOMC members. ECB Governing Council member Nowotny of Austria struck a very different tone, […] More
Central Bank Watch
Bank of Korea
February 16, 2016
The seven-day repo rate was left at 1.5%, its level since a 25-basis point cut last June. Five such reductions were spaced out between May 2013 and June 2015. Monetary officials, who meet monthly, released a statement, projecting sub-trend, domestic demand-led growth and low inflation. Considerable attention is being devoted to “external risk factors such […] More
New Overnight Developments Abroad - Daily Update
Concerns about Europe
February 16, 2016
European markets had rallied Monday, spurred by upbeat remarks from ECB President Draghi regarding the economic outlook and the readiness of central ban policymakers to act further to stimulate growth and boost inflation closer to target. But Tuesday saw a return of risk aversion related to concerns about the health of European banks and the […] More
New Overnight Developments Abroad - Daily Update
Several Points of Keen Interest Despite U.S. Presidents Day Market Closure
February 15, 2016
A 1.2% increase in the Chinese yuan against the dollar was its biggest daily advance since a 2% revaluation engineered in July 2005. People’s Bank of China Governor Zhou made upbeat remarks about the yuan and China’s economy and balance of payments. The cause of U.S. Supreme Court Justice Scalia’s death was ruled a heart […] More
