Foreign Exchange Insights and Next Week
Stocks and Commodities Fell, while Dollar and Treasury Yields Rose During Yellen Press Conference
December 14, 2016
The success of a press conference is often measured by whether such elicited a positive market response. That didn’t necessarily happen today. The conference ended at 15:21 EST, a shade sooner than the usual full hour taken. Comparing market levels then to those just before the FOMC statement was released at 14:00 EST, the dollar […] More
Central Bank Watch
Fed Funds Target Raised by 25 Basis Points as Expected
December 14, 2016
The Federal Open Market Committee agreed unanimously to raising the interest rate target range to 0.5-0.75%. The released statement speaks of moderate growth but with continuing soft business investment. Note is made of a strengthening labor market and rising inflation, which is projected in newly released forecasts to be 1.9% next year and at the […] More
Central Bank Watch
Central Bank of Iceland Eases Somewhat Unexpectedly
December 14, 2016
The seven-day deposit rate was cut to 5.0% from 5.25%. Although the rate had be reduced by 50 basis points in August, today’s action was somewhat surprising as growth has been strong. In a released statement, officials note that the strength of the krona influenced this second rate reduction of 2016. Inflation measured 2.1% in […] More
Central Bank Watch
FOMC Preview
December 14, 2016
The last FOMC meeting occurred right before the U.S. election result heard round the world. Trump’s unanticipated victory and the broad-based policy changes that he intends to pursue have also produced unexpected market moves. Stocks are sharply higher. Sovereign debt yields have risen even more dramatically. The dollar has rallied especially against the yen. Oil […] More
New Overnight Developments Abroad - Daily Update
Awaiting a Likely Fed Rate Hike and Yellen’s Press Conference
December 14, 2016
The Fed’s announcement is due at 14:00 EST (19:00 GMT). A rate hike is like for the first time in a year. Chair Yellen’s press conference starts 14:30 EST. New forecasts will be unveiled. The dollar is down 0.3% against the euro and yen. Ten-year sovereign debt yields fell overnight by six basis points in […] More
