New Overnight Developments Abroad - Daily Update
Stocks and Commodities Up, Dollar and Bond Yields Down
October 18, 2016
The dollar eased overnight against the currencies of other advanced economies. Losses of 1.1% against the kiwi and 1.0% versus sterling led this move. The dollar also fell 0.7% relative to the Australian dollar, 0.5% versus the loonie, and 0.1% relative to the yen, euro and Swiss franc. The pound was lifted by news that […] More
Foreign Exchange Insights and Next Week
A Most Peculiar Time
October 17, 2016
Precedent plays a central role in currency forecasting whether one relies on fundamental economic analysis or technical analysis. However, things have changed so profoundly in 2016 as to render precedent inapplicable in explaining the present or projecting the future. Doubts have arisen about the laws governing macroeconomic relationships in the face of things behaving differently […] More
New Overnight Developments Abroad - Daily Update
Expected U.S. Inflation Moves Up
October 17, 2016
Janet Yellen’s wide-ranging speech before the weekend appears to have lifted price expectations. The Fed Chair seemed to favor letting inflation exceed target temporarily. Share and bond prices, as well as oil are generally softer. So is the dollar, sterling and some emerging market currencies like the Turkish lira. Turkey’s jobless rate jumped 0.5 percentage […] More
Foreign Exchange Insights and Next Week
Next Week
October 14, 2016
Final Trump/Clinton Presidential Candidates Debate: Wednesday October 19 at 21:00 EDT from Las Vegas (at UNLV campus). Central Bank Developments: Monetary policy meetings scheduled for the euro area, Canada, Brazil, Turkey, Chile, and Indonesia. The Fed publishes the Beige Book of regional economic trends. The Bank of Canada publishes latest Monetary Policy Report. Draghi of […] More
Central Bank Watch
Unchanged Monetary Policy in Singapore
October 14, 2016
Interest rate policy in Singapore is subordinated to an exchange rate target corridor, defined by the following three elements: the band’s width, midpoint and slope. The Monetary Authority of Singapore assesses the policy stance twice a year in April and October. Policy was loosened at both meetings of 2015 by flattening the upward slope of […] More
New Overnight Developments Abroad - Daily Update
Chinese Price Data Lend Support to Investor Sentiment
October 14, 2016
The perceived strength of the Chinese economy continues to exert enormous influence over market sentiment. Poor trade data on Thursday sent global stocks tumbling, but today’s price reports indicated higher-than-expected inflation and generated a relief rally. Chinese consumer prices advanced 0.7% on month in September and 1.9% on year, the biggest 12-month increase since a […] More
Central Bank Watch
Central Reserve Bank of Peru
October 13, 2016
Officials at Peru’s central bank left their policy interest rate unchanged at 4.25% and released a statement that projected a drop of CPI inflation below the target range ceiling fairly soon and to 2.0% by the end of next year. Measures of expected inflation are diminishing, and real GDP is expected to grow at a 3% […] More
Central Bank Watch
National Bank of Serbia’s Key Interest Rate Left at 4.0%
October 13, 2016
Serbian inflation continues to run below the 2-4% inflation target band, but officials expect a rise above the target floor by the middle of next year according to a short statement released after the latest monetary policy meeting. The current 4.0% central bank rate is only half as high as its level at the start of […] More
Central Bank Watch
Bank of Korea
October 13, 2016
Policymakers at the Bank of Korea did not raise their one-week repo rate of 1.25%, a record low, in spite of a tripling of CPI inflation to 1.2% in September and a projection that positive growth will continue in the vicinity of 3%. In a statement released after the October policy meeting, officials stressed the […] More
New Overnight Developments Abroad - Daily Update
Many Factors Weighing on World Stocks
October 13, 2016
Share prices around the Pacific Basin fell 1.6% in Hong Kong and India, 0.9% in South Korea, 0.7% in Australia, 0.5% in Indonesia, and 0.4% in Taiwan and Japan. Equities in Europe are so far showing losses of 1.6% in Greece, 1.3% in France, Germany and Italy, 1.1% in Spain, 0.9% in Switzerland, and 0.7% […] More
