Deeper Analysis
U.S. Non-manufacturing Activity Quickened in June Absolutely and Relative the Euro Area
July 6, 2016
The U.S. Institute of Supply Management’s non-manufacturing purchasing managers survey revealed a 3.6-point increase in June to 56.5, implying pretty robust expansion. This followed a slowdown in May and raised the rate of expansion to a 7-month high. The reacceleration was broadly based, with business activity up 4.4 points, orders up 5.7 points, and jobs […] More
Central Bank Watch
Swedish Repo Rate Kept at -0.50%
July 6, 2016
The Swedish Riksbank introduced a negative interest rate of -0.10% in February 2015 cut such subsequently at three later meetings: by 15 bps in March 2015, 10 bps in July 2015 and, most recently by 15 bps in February of this year. Officials complement the negative interest rate with quantitative stimulus (QE) via bond buying, […] More
New Overnight Developments Abroad - Daily Update
Blame It on the British: Bond Yield Distress Extended
July 6, 2016
The 10-year Treasury yield touched a fresh low for the move earlier today of 1.318%. It closed on June 23 at 1.75% just before the shocking Brexit vote result became known. The 10-year Japanese JGB is off two basis points at negative 0.27%. The sovereign debt yields in Germany and Switzerland are also below zero. […] More
Central Bank Watch
Wait and See at the RBA
July 5, 2016
The Reserve Bank of Australia as expected retained a 1.75% Official Cash Rate after this month’s Board meeting and released a statement that made a number of points defending its decision. Inflation has been quite low. Given very subdued growth in labor costs and very low cost pressures elsewhere in the world, this is expected […] More
New Overnight Developments Abroad - Daily Update
Sterling and Oil Slammed…Funds Seeking Bonds and Yen
July 5, 2016
The dollar rose 1.7% against sterling but fell 0.9% relative to the yen. The greenback has also risen 1.0% against the loonie, 0.9% relative to the Aussie dollar and kiwi. Dollar/euro and dollar/Swiss are little changed. Commodities are sinking except in the case of precious metals like gold and silver. West Texas Intermediate oil fell […] More
Uncategorized
Brexit on the Mind and a U.S. Birthday
July 4, 2016
On this 240th anniversary of the U.S. Declaration of Independence, U.S. markets are closed, depleting currency markets of some leadership. The dollar is little changed against other monies like the euro, yen and sterling. Nigel Farage, head of the UKIP Leave Party, resigned, creating more confusion about Britain’s next government and when the Brexit timetable […] More
Foreign Exchange Insights and Next Week
Next Week
July 1, 2016
Central Bank Action: Interest rate policy meetings in Australia, Sweden, Poland and Serbia. Publication of ECB Account, FOMC minutes, Bank of England Financial Stability Report, and Bank of Canada Business Outlook Survey. ECB President Draghi, BOJ Governor Kuroda, and RBA Deputy Governor DeBelle speak publicly. Events and Holidays: Australian national election on Saturday. U.S. Independence […] More
Deeper Analysis
In June, Factory Activity Quickened in Both the United States and Euroland
July 1, 2016
Euroland’s manufacturing purchasing managers index rose by 1.3 points in June, but that quickening rate of activity expansion was exceeded by a 1.9-point advance in the U.S. PMI to 53.2. As a result, the spread between those two measures swung from a minuscule Ezone advantage of 0.2 points in May to a still small U.S. […] More
New Overnight Developments Abroad - Daily Update
Big Further Drop in Sovereign Debt Yields
July 1, 2016
A bond market rally based on expected monetary stimulus from a variety of authorities and other pro-growth support has taken hold of world financial markets. Commodities are up, too. The dollar is down, and profit-taking in U.S. stocks is indicated despite higher share prices in Asia and Europe. Bank of England Governor Carney gave an […] More
