Central Bank Watch
Central Bank of Chile
December 13, 2016
The central bank board left its key rate unchanged at 3.5% but signaled that “if the recent trends of the economic scenario persist, and so do their implications on the medium-term inflation outlook, it will be necessary to boost the monetary impulse.” According to a released statement, the peso has appreciated, growth is not expected […] More
New Overnight Developments Abroad - Daily Update
Markets Comfortable with Tomorrow’s Likely Fed Tightening
December 13, 2016
Stocks have risen in Asia, Europe and North America. Ten-year German bunds and British gilt yields are down three basis points. The 10-year JGB yield edged a basis point lower, and the 10-year Treasury is steady. Oil is trading firmly at $52.75 per barrel, albeit down 0.2% from Monday’s close. Gold declined 0.7% to $1,157.70 per […] More
New Overnight Developments Abroad - Daily Update
Solidarity of Oil Producers Lifts Oil Prices by More Than 4.0%
December 12, 2016
The price of West Texas Intermediate crude oil leaped 4.2% to $53.68 per barrel. At a meeting on Saturday, the Saudis showed a readiness to cut production even more than agreed previously, and non-cartel producers are supporting the effort to reduce global output and lift the price of oil. This oil news has reinforced the […] More
Foreign Exchange Insights and Next Week
Next Week
December 9, 2016
Central Banks: Wednesday’s Federal Open Market Committee meeting heads a list of no fewer than a dozen central bank interest rate policy meetings next week that also includes the U.K., Switzerland, Norway, Iceland, Russia, Indonesia, South Korea, Mexico, Colombia, Chile and Peru. The Fed’s meeting, which is universally expected to raise the federal funds target, will […] More
New Overnight Developments Abroad - Daily Update
Further Leap in U.S. Consumer Confidence Lifts Dollar
December 9, 2016
The Reuters/U. Michigan consumer sentiment index leaped to 98.0 in early December from final readings of 93.8 in November and 87.2 in October. The latest score almost matches the greatest optimism since 2004. Excitement about the coming Trump presidency appears responsible for this much greater-than-anticipated upturn. The dollar climbed overnight by 1.0% against the yen […] More
Central Bank Watch
European Central Bank Does Something Unexpected
December 8, 2016
Back last March, the Governing Council had augmented monetary policy easing in several ways, such as cutting the interest rates by 5 bps each in the case of the refinancing rate (now at zero percent) and marginal lending facility (0.25%) as well as the deposit rate by 10 bps to -0.40%. Monthly asset purchases were […] More
Central Bank Watch
National Bank of Ukraine
December 8, 2016
Ukraine’s central bank interest rate had been ratcheted up to as high as 30% last year to counter exchange rate depreciation and the inflation such causes. Once stabilization had been secured, such was slashed by 3 percentage points (ppts), 5 ppts and 4 ppts in August and September 2015, and May of this year. Four […] More
Central Bank Watch
National Bank of Serbia
December 8, 2016
Serbia’s key monetary policy interest rate was left at 4.0%, its level since a 25-basis point reduction in July. A statement released by the National Bank of Serbia reiterated several factors mentioned after the prior meeting last month for why inflation is likely to firm into the 1.5-4.5% target range by early 2017. But in […] More
New Overnight Developments Abroad - Daily Update
Dollar Strengthens against Euro after ECB Announcement
December 8, 2016
The dollar advanced 1.3% against the euro, 1.0% versus the Swiss franc, 0.5% relative to the Aussie dollar, 0.3% vis-a-vis the yen and sterling and 0.2% against the Mexican peso and Chinese yuan. ECB interest rates were left unchanged. The non-standard asset purchase program was extended nine months in duration but reduced to EUR 60 […] More
Central Bank Watch
Bank of Canada
December 7, 2016
This month’s Bank of Canada policy meeting, the last scheduled for 2016, was not synchronized with one of the four full monetary policy reports produced each year. As expected, the overnight money target was left at 0.50%. Since the end of the Great Recession, the rate has been changed just five times: three 25-bp increases […] More
