Deeper Analysis
The Enigmatic U.S. Economy
August 12, 2016
U.S. economic data trends span a wide spectrum, hampering analysts from synthesizing current conditions and prospective trends into a coherent direction with strong confidence. Start with the good. Jobs growth in June and July averaged a robust 274K per month, well above the 75-100K needed to avoid a rising jobless rate, which at 4.9% is […] More
Foreign Exchange Insights and Next Week
Next Week
August 12, 2016
Monday Holidays: Assumption Day observed in several European markets. South Korean National Liberation Day commemorating freedom from Japanese colonialism. Central Banks: Bank Indonesia has an interest rate policy. The Fed, ECB and Reserve Bank of Australia publish policy meeting minutes. Fed district bank presidents Williams, Bullard and Lockhart speak publicly. U.S. Economic Statistical Releases: Consumer […] More
Central Bank Watch
Central Bank of Chile
August 12, 2016
The notable element in the latest statement from Chilean monetary authorities isn’t the announced decision to keep its interest rate benchmark at 3.5% or the reasons given for doing so but rather that language found in earlier such statements that explicitly projected more rate normalization (code for rate hikes) was deleted. Instead, officials just pledge […] More
Central Bank Watch
Central Reserve Bank of Peru
August 12, 2016
Peru’s monetary policy rate had been raised during the final quarter of 2015 twice by 25 basis points and again in January and February of this year by the same amount. But there have been no further changes including at the latest Board meeting today. A statement released after the meeting justifies keeping the rate […] More
New Overnight Developments Abroad - Daily Update
Markets Sustained by a Belief that Help is on the Way
August 12, 2016
Investors are confident that central banks won’t let bad things happen. The Central Bank of Chile kept a 3.5% interest rate benchmark and dropped language about future rate normalization. Like many other monetary authorities except perhaps the Fed, plans to tighten are getting delayed and in many cases like the Bank of England and BOJ […] More
