Foreign Exchange Insights and Next Week
The Mother of All Resistance Levels is Par (1:1)
May 11, 2016
Currencies readily alternate between cycles of appreciation and depreciation, but it is a much rarer event for a currency’s unit of account to transition from being weaker than another to being worth more. Put differently, movements through par, or in the case of USD/JPY 100:1, happen very infrequently. Take the key EUR/USD relationship, now almost […] More
Central Bank Watch
Central Bank of Iceland
May 11, 2016
Inside of less than a six-month span, the seven-day collateralized Icelandic lending rate was raised three times by 50 basis points each between June 2015 and last November to the current 6.5% level. Such is four times greater than April’s on-year pace of CPI inflation. Those tightenings of policy represented a normalization process and pre-emptive […] More
Central Bank Watch
Bank of Thailand
May 11, 2016
The 1.25% policy interest rate was retained by a unanimous vote of the Monetary Policy Committee. This is the lowest rate since June 2010 and has been unchanged since 25-basis point cuts engineered in March and April of 2015. The statement explaining today’s decision reads dovishly, conceding that “the balance of risks to economic growth […] More
New Overnight Developments Abroad - Daily Update
Abrupt Reversal of Tuesday’s Stock Market Rally
May 11, 2016
Share prices in Europe have so far fallen Wednesday by 2.2% in Italy, 1.6% in Spain, 1.3% in Greece, 1.0% in France, 0.8% in Germany and 0.1% in the U.K.. Earlier in the Pacific Rim, stocks fell 0.7% in India, 0.4% in Hong Kong, 0.3% in Taiwan and Singapore and 0.1% in South Korea but […] More
