Deeper Analysis
July in Figures
July 31, 2017
On the final day of July, the Dow hit a record high, and the dollar touched its weakest level against the euro since January 14, 2015 and softest yen value since mid-June. July was a difficult month for the U.S. presidency, even by Trump standards. Also, the future path of Fed policy became less certain, […] More
New Overnight Developments Abroad - Daily Update
Dollar Down Even as Stocks Continue to Rise
July 31, 2017
Lots of economic data were reported today. The dollar and U.S. share prices diverged in direction on the final day of July as they had done much of this month. The dollar lost 0.3% against the euro, Swissy and sterling, and it fell 0.2% against the yuan and 0.1% relative to the yen. The never-ceasing […] More
Foreign Exchange Insights and Next Week
Next Week
July 28, 2017
Central Banks: Monetary policy meetings in Australia, Great Britain, India, Sri Lanka, Romania, the Czech Republic and Ukraine. The Reserve Bank of Australia’s quarterly Monetary Policy Statement and Bank of Japan’s Summary will be published. Mester and Williams of the Federal Reserve speak publicly. Purchasing Manager Surveys: Many service sector PMIs and even more manufacturing […] More
Central Bank Watch
Bank of Russia’s Interest Rate Left at 9.0%
July 28, 2017
The interest rate previously had been cut this year by 25 basis points in March, 50 bps in April and 25 bps in June, but a released statement observes “The decline of inflation expectations has come to a halt, consistent with predictions, in response to price movements in a number of products and services. In order to maintain inflation close to the 4% target, the Bank of Russia […] More
Central Bank Watch
Colombia’s Central Bank Interest Rate Sliced 25 Basis Points to to 5.5% by 6-1 Vote
July 28, 2017
The Bank of the Republic of Colombia implemented its sixth interest rate reduction of 2017 following cuts of 25 basis point in February, March and May and of 50 bps in April and June. A released statement speaks of weak domestic demand and notes that both total and core inflation slowed in June, although remaining […] More
New Overnight Developments Abroad - Daily Update
Tough Session for Stocks and Dollar
July 28, 2017
Equities in the Pacific Rim dropped 1.7% in South Korea, 1.4% in Australia, 1.2% in New Zealand, 0.9% in Hong Kong, 0.8% in Singapore, 0.7% in Singapore and 0.6% in Japan. Stocks in Europe thus far are down 1.3% in France, 1.1% in Italy, 0.9% in Spain, 0.8% in the U.K., and 0.4% in Germany. […] More
Central Bank Watch
Central Bank of the Republic of Turkey Fails to Loosen Policy Stance
July 27, 2017
The central bank lending rate has been at 9.25% since hikes of 25 basis points in November 2016 and 75 bps in January of this year. A statement released after the latest policy review observes improved domestic demand and inflation but cautions that “although recent improvements in cost factors and expected partial correction in food […] More
New Overnight Developments Abroad - Daily Update
Market Churning and in Search of New Direction
July 27, 2017
A mixed day for the dollar this Thursday with a rebound of 1.1% against the Swiss franc and 0.3% relative to the euro and loonie. The dollar also edged up 0.1% versus the peso, yen and kiwi but has lost 0.2% against the yuan and 0.1% versus sterling. Stocks advanced 0.9% in Taiwan, 0.8% in […] More
Central Bank Watch
Another Brazilian Central Bank Interest Rate Cut
July 26, 2017
The Selic rate has been reduced to 9.25% from 10.25%. The previous cut was made at the end of May and also 100 basis points in size. The current easing cycle began three years ago in July 2014 at 17.5%. A statement released by Copom, the Central Bank of Brazil’s policymaking committee, observes continuing disinflation […] More
Central Bank Watch
Minor Modifications Only in FOMC Statement
July 26, 2017
Today’s FOMC statement left the federal funds rate target range at 1.0-1.25% as widely expected. The document added virtually nothing meaningfully new to the market’s understanding of current policy and the intentions of its officials, yet it produced a further significant drop in the dollar, which hit a low of 1.1741 per euro during the […] More
