Foreign Exchange Insights and Next Week
Time Going By
May 2, 2017
A great hullabaloo was made as the 100th day of the Trump presidency approached, and now that it has passed, we’re left to wonder what that arbitrary milestone really signified. Perhaps a more significant milestone is six days away, namely that a half-year will then have elapsed since the 45th president of the United States […] More
Deeper Analysis
Soft Euro Lifting Euroland Manufacturing at U.S. Expense
May 2, 2017
The manufacturing purchasing managers index of Euroland, 56.7, surpassed its U.S. counterpart, 54.8, in April for the first time since April. The lagged effect of the post-Trump dollar rally is a major reason why. Manufacturing is more sensitive to currency movement than non-manufacturing. Although the table below uses the ISM compilation for its U.S. component […] More
Central Bank Watch
Australian Monetary Policy Rate Stays at Record Low 1.5%
May 2, 2017
The RBA’s Official Cash Rate has been at 1.5% since 25-basis point reductions in May and August of 2016. A pair of 25-basis point cuts each were also implemented in the final quarter of 2012, May and August 2013 and February and May of 2015. Governor Lowe’s statement explaining today’s action acknowledged that inflation has […] More
New Overnight Developments Abroad - Daily Update
Yen Weakens to a Six-Week Low
May 2, 2017
The yen is down 0.3% on balance after touching an overnight low of 112.32 per dollar, its weakest value since March 21. Japan’s services purchasing managers index and composite PMI slipped to 2-month lows of 52.2 and 52.6 in April from 19-month peaks set in March. On-year growth in Japan’s monetary base slid under 20% […] More
