Foreign Exchange Insights and Next Week
Managing the Dollar Through a Period of Policy Normalization
March 24, 2016
So far, so good. After years of running an extraordinarily loose monetary policy required by insufficiently high inflation, excessive labor market capacity, an inappropriately tight U.S. fiscal stance, and broken-down Washington politics offering no hope for a more balanced macroeconomic strategy, the Fed faces the challenging task of policy normalization. It goes without saying that […] More
Central Bank Watch
Central Bank of the Republic of Turkey Narrows Overnight Interest Rate Corridor by 25 Basis Points
March 24, 2016
The 7.5% one-week repo rate and 7.5% overnight deposit rate were left unchanged, but the 10.75% overnight lending rate was cut to 10.5% at the latest meeting of Turkey’s Monetary Policy Committee. At a few previous meetings, officials had delayed a promised simplification of their Byzantine rate structure, but now a small first step in […] More
Central Bank Watch
Central Bank Interest Rate Cut in Taiwan
March 24, 2016
The Board of the Central Bank of the Republic of China (Taiwan) meets on a quarterly basis and, as done last September and December, cut its three interest rates including the main rediscount rate by 12.5 basis points at this month’s review. Three of the five 12.5-basis points hikes engineered between June 2010 and June […] More
New Overnight Developments Abroad - Daily Update
Investor Sentiment Spooked by Fed Official Rhetoric
March 24, 2016
Led by oil, commodity prices have dropped. West Texas Intermediate crude oil dropped 2.5% to $38.81 per barrel after indications of rising U.S. inventories. Comex gold edged 0.1% lower to $1,218.83 per ounce. The Shanghai Composite index of Chinese share prices fell 1.6%, most in two weeks. Equities closed down 1.3% in Hong Kong, 1.1% […] More
