Central Bank Watch
Magyar Nemzeti Bank
December 20, 2016
Having cut Hungary’s key central bank interest rate by 45 basis points in March-May of this year to 0.90% and by 610 basis points since August 2012, monetary authorities shifted their focus from easing via progressive cuts in the interest rate to other monetary tools that promote the pass-through of a lower central bank rate […] More
Central Bank Watch
Bank of Japan
December 20, 2016
The final BOJ Board meeting of 2016 left all policy settings unchanged as expected. A released statement upgraded economic conditions and prospects, proclaiming that “Japan’s economy has continued its moderate recovery trend and is likely to turn to a moderate expansion” and deleting previous qualifying language that warned “sluggishness is expected to remain in exports and […] More
New Overnight Developments Abroad - Daily Update
Japanese Satisfaction Evident with a Weakening Yen
December 20, 2016
The yen fell 0.8% against the dollar after the Bank of Japan left its accommodative monetary stance unchanged despite a sharply lower yen. Governor Kuroda dispelled any thought of a possible rate hike, noting that depreciation lifts import prices, overall inflation, growth and expected inflation. The dollar also advanced 0.5% against the pound, 0.3% versus […] More
New Overnight Developments Abroad - Daily Update
Yen Strengthens as Markets Begin Yearend Positioning
December 19, 2016
The U.S. electoral college votes today and is widely expected to make Donald Trumps victory last month official. The dollar fell 0.9% against the yen. Japan reported another set of robust trade data. The customs trade surplus widened to JPY 536 billion in November, highest so far this year. Seasonally adjusted exports and imports posted […] More
Foreign Exchange Insights and Next Week
Next Week
December 16, 2016
Central Banks: In the week before Christmas, monetary policy meetings are scheduled in Japan, Hungary, Sweden, the Czech Republic, Thailand and The Philippines. Central Banks in Australia, India and Japan will publish minutes of their last meetings. Friday Holidays: Emperors Birthday. A number of markets will shut early Friday for Christmas. Scheduled U.S. Economic Statistical […] More
Central Bank Watch
Bank of Russia
December 16, 2016
Monetary officials left Russia’s key central bank interest rate at 10.0% and released a report that was more equivocating than prior reports about how soon the rate can be lowered further. Actual inflation is behaving as assumed, but expected inflation is higher than hoped. A number of inflation risk factors are mentioned. The restraining effect […] More
New Overnight Developments Abroad - Daily Update
Market Breather as Week Draws to a Close
December 16, 2016
Relentless market trends since the U.S. election characterized by a rising dollar and higher share prices but weaker bond and gold prices paused on this final day of the week. The weeks before and after Christmas are potentially unpredictable even in times not characterized by high uncertainty. Action at the yearend holidays ranges from listless to […] More
Central Bank Watch
Central Reserve Bank of Peru
December 15, 2016
A statement released after this month’s monetary policy meeting said the decision to leave the key interest rate at 4.25% “is consistent with an inflation forecast in which inflation converges to 2 percent towards the end of 2017. … Expectations of inflation in 12 months have increased slightly but continue showing a declining path within […] More
Central Bank Watch
Bank of Mexico
December 15, 2016
Mexican monetary officials just engineered the fifth 50-basis point interest rate hike of 2016. Along with a 25-basis point hike in December 2015, the rate has risen from 3.0% to 5.75% in the space of twelve months, nearly matching the dramatic tightening done by the Fed in 1994-5. The inflation dynamic faced by Mexican officials […] More
Central Bank Watch
Swiss National Bank
December 15, 2016
The Swiss National Bank reported result of its quarterly policy review today, which ended without a change in the interest rate of -0.75% on overnight sight deposits or the pledge to intervene as needed to counter what central bank officials to be a still significantly overvalued franc. Since January 2015, intervention has been done on […] More
