Central Bank Watch
Reserve Bank of Australia’s Official Cash Rate Reduced to 1.75%
May 3, 2016
The 25-basis point OCR reduction was not anticipated but likewise is not shocking juxtaposed against such recent data reports as these: Consumer prices had been expected to rise 0.2% last quarter but instead fell 0.2%, resulting in a 0.4 percentage point drop in the year-on-year pace to 1.3%. Core CPI inflation decelerated by 0.4-0.5 percentage […] More
Foreign Exchange Insights and Next Week
Covert Currency War Games
May 3, 2016
Even with U.S. monetary stimulus being throttled back and other central banks pressing harder on the stimulus pedal, the pace of policy change thus far and in the future will be too gradual to make a huge difference in a direct way through their influence on short- and long-term interest rate differentials. The cutting edge […] More
New Overnight Developments Abroad - Daily Update
Risk Aversion Returns after Upbeat Monday
May 3, 2016
Stocks, Treasury yields, and oil prices faltered Tuesday for various reasons. Disappointing Chinese, British and Irish manufacturing purchasing manager surveys reported. Mediocre first-quarter U.S. corporate reports in the background. EU Commission’s Spring Forecast revised 2016 and 2017 projected growth marginally downward. Credibility of BOJ policy very low. Japanese market shut for first of three consecutive […] More
