Foreign Exchange Insights and Next Week
G20 Leaders Made No Change to Currency Policy
September 6, 2016
Leaders from the Group of 20 completed their meetings in Hangzhou, China and released a statement of roughly 7,250 words. Four sentences summarize their common view on exchange rates: We reiterate that excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability. Our relevant authorities will consult closely on […] More
Central Bank Watch
Reserve Bank of Australia
September 6, 2016
Glen Steven’s decade-long stewardship as Governor of the Reserve Bank of Australia ends this month, and his last interest rate policy meeting ended with an as-expected decision to leave the Official Cash Rate unchanged at 1.5%. The rate had been sliced by 25 basis points each in February and May of 2015 and May and […] More
Deeper Analysis
Disappointing U.S. News Including Latest Purchasing Manager Surveys
September 6, 2016
U.S. data released today reinforce the view of those analysts who do not expect the federal funds rate to be increased later in September. First, the Federal Reserve’s proprietary labor market conditions index fell 2.0 points, swinging from a reading of +1.3 to a 3-month low of -0.7 in August. Secondly, the IBD/TIPP index of […] More
New Overnight Developments Abroad - Daily Update
Message of Jackson Hole Didn’t Stick
September 6, 2016
Speeches and various comments emerging from the Jackson Hole Symposium late last month had been coordinated to plant in investors’ minds the notion that the Fed would be raising its interest rate sooner than assumed and that two hikes before yearend in fact remained possible. The shift in market psychology was only fleeting, however, and […] More
