Deeper Analysis
December and 2016 in Figures
December 31, 2016
Although the federal funds rate was raised three fewer times in 2016 than many U.S. monetary officials were expecting a year ago, short-term interest rate differential moved significantly more in favor of U.S. assets over the course of the year. This shift was reflected in 10-year bond yield spreads between the United States and both […] More
Foreign Exchange Insights and Next Week
Next Week
December 30, 2016
Holiday Closures: No holiday is more widely shared than New Years Day. Since such fall on a Sunday in 2017, most markets will be shut on Monday. New Zealand and Japan well remain closed Tuesday, and Japan’s markets will observe only a half day on Wednesday. Some markets like Spain and Italy will be observing […] More
New Overnight Developments Abroad - Daily Update
Closing the Book on a Year of Surprise
December 30, 2016
The dollar and yen slipped on this final session of 2016. The U.S. currency rose 0.3% against the yen overnight but otherwise depreciated 0.5% against the euro and Swiss franc, 0.4% versus sterling, 0.3% relative to the loonie and Mexican peso, and 0.2% vis-a-vis the Chinese yuan. Markets were shut in Russia, Ukraine, New Zealand […] More
Foreign Exchange Insights and Next Week
2016 Market Movements Before and After the U.S. Election
December 29, 2016
The U.S. election on November 8th was a turning point for many financial market instruments. The ten-year Treasury yield had declined 41 basis points to 1.86% between the end of 2015 and the election. This was twice the net increase registered in calendar 2015. Since the election, the yield has climbed 63 basis points. Since […] More
New Overnight Developments Abroad - Daily Update
Dollar, Bond Yields, and Japanese Nikkei Slip
December 29, 2016
The dollar fell overnight by a further 0.5% against the yen, 0.4% relative to the euro, Aussie dollar and kiwi, 0.3% versus the loonie, peso and Swiss franc, 0.2% against sterling and 0.1% relative to the yuan. The Japanese Nikkei dropped 237 points (1.3%). Equities in Europe are down 0.3% in Spain and the U.K., […] More
New Overnight Developments Abroad - Daily Update
Favorable Japanese Data Releases
December 28, 2016
Markets that had been closed for holiday on Tuesday reopened but to a continuing trickle of data reports with the exception of Japan, where industrial production, auto output and retail sales were reported. Japanese industrial production climbed 1.5% in November, warranting an official trend upgrade to “picking up movement” from “shows signs of an increase at […] More
New Overnight Developments Abroad - Daily Update
Japanese and U.S. Data Dominate Tuesday News
December 27, 2016
Core Japanese consumer price inflation remained at -0.4% in November, but Tokyo’s core rate of deflation was -0.6% in December, a new extreme for 2016. Energy price deflation is lessening, but overall price data are not responding commensurately. The Japanese jobless rate edged up 0.1 percentage point to 3.1% in November. Employment grew 1.1% on […] More
Central Bank Watch
Bank of Israel Retains 0.1% Key Interest Rate
December 26, 2016
Israel’s policy interest rate has been 0.1% since a 15 basis point cut in February 2015. The rate previously had dropped from 3.25% to 0.25% during 2011-14. The Bank of Israel released a formal statement and remarks from Governor Flug justifying the need for the accommodative stance and explaining how Israel’s economy reflects the United States […] More
New Overnight Developments Abroad - Daily Update
Time Out for the Holidays
December 26, 2016
The dollar is unchanged against the euro and Swiss franc, up 0.2% relative to the yen and 0.1% vis-a-vis the yuan and Mexican peso but down 0.5% against the kiwi, 0.3% versus the Aussie dollar and 0.2% against the loonie. Share prices rose 0.4% in China, reversing an initial sharper slide, but fell 0.2% in […] More
Foreign Exchange Insights and Next Week
Next and Last Week of 2016
December 23, 2016
Many Holiday Closures Including: United States, U.K., Germany, France, Spain, Italy, Switzerland, Australia, New Zealand, Canada, Hong Kong and South Africa on Monday and Australia, New Zealand, Hong Kong, Britain, Greece and Canada on Tuesday for a combination of Christmas, Boxing Day or St. Stephen’s Day. Also, Russia and early closes in Germany and Britain […] More
