Foreign Exchange Insights and Next Week
Next Week
September 29, 2017
Central Banks: Monetary policy reviews scheduled in Australia, India, Iceland, Poland, Hungary, and Romania. Various Fed officials will be speaking publicly, including Yellen, Dudley, Powell, Williams, Bostic, Harker, George and Kapan. Minutes of the ECB Governing Council meeting to be published. Holidays: China all week to commemorate Communist revolution victory in 1979. Hong Kong on […] More
New Overnight Developments Abroad - Daily Update
Ton of Released Data but Tepid Market Reaction
September 29, 2017
Strong dollar gains this week were in most cases not extended on the final business day of September and the quarter. The dollar is down 0.2% against the euro and 0.1% relative to the yuan and Swiss franc. The loonie and peso are unchanged. The dollar rose 0.2% against the New Zealand and Australian dollars, […] More
Central Bank Watch
Reserve Bank of New Zealand
September 28, 2017
New Zealand’s official cash rate has been at a record low of 1.75% since a 25-basis point reduction in November 2016, and that’s only half as high as the 3.50% peak maintained from July 2014 until June 2015. Monetary policy will remain accommodative for a considerable period. Numerous uncertainties remain and policy may need to […] More
New Overnight Developments Abroad - Daily Update
U.S. Tax Reform Details Extend Rise in Sovereign Debt Yields
September 28, 2017
Ten-year sovereign debt yields climbed additionally overnight by 3 basis points in the U.S., Japan and Germany and 2 bps in Great Britain. The dollar see-sawed. On balance, it advanced 0.4% against the Australian dollar and Chinese yuan and by 0.2% versus the Swiss franc, but it slipped 0.2% against the euro and 0.1% relative […] More
Central Bank Watch
Czech National Bank
September 27, 2017
Monetary officials kept their 2-week repo rate at 0.25% at today’s policy review after having broken a streak dating back to November 2012 when such had been pinned at 0.05%. A ceiling on the koruna at 26.0 per euro, which was introduced in November 2013, was lifted back in April, but authorities reserve the right […] More
Central Bank Watch
Bank of Thailand’s One-Day Repo Rate Left at 1.5% as Expected
September 27, 2017
The last central bank interest rate changes in Thailand were a duo of 25-basis point reductions in March and April of 2015 that culminated two percentage points of easing since November 2011. The policy stance is being kept accommodative in light of sub-target inflation and the baht’s appreciation against other Asian currencies. Some political pressure […] More
New Overnight Developments Abroad - Daily Update
Dollar Rises and Long-Term Sovereign Debt Yields Spike Upward
September 27, 2017
The dollar advanced overnight by 0.9% against the Mexican peso, 0.6% versus the yen and Swiss franc, 0.4% relative to the euro, and 0.3% vis-a-vis the Aussie dollar, loonie and sterling. The yuan is flat, and the kiwi edged up 0.1%. Ten-year German bund and British gilt yields leaped six and five basis points. Futures […] More
Central Bank Watch
Central Bank of Sri Lanka
September 26, 2017
Once again, Sri Lanka’s Monetary Policy Committee elected not to change its key deposit and lending rates of 7.25% and 8.75%. They have been at those tight levels since a 50-basis point increase in July 2016. An earlier move of same magnitude had been implemented in February. Headline and core CPI inflation picked up somewhat […] More
New Overnight Developments Abroad - Daily Update
Dollar Strengthens
September 26, 2017
The dollar rose overnight by 0.8% against the kiwi, 0.6% versus the Aussie dollar, 0.5% vis-a-vis the Swiss franc, 0.4% relative to the euro and 0.3% versus the yen, loonie and sterling. Stocks in the Pacific Rim dropped 0.8% in Taiwan, 0.5% in Indonesia, 0.3% in Japan and South Korea, and 0.2% in Australia but […] More
Uncategorized
Monday’s Spotlight on Politics and Central Banks
September 25, 2017
Saturday’s parliamentary election in New Zealand resulted in a hung parliament. The center-right National Party of Prime Minister English took a 46.0% plurality of the popular vote (58 of 120 seats) and will need to cobble together a coalition with smaller parties to form a government. Labour won 35.8% of the vote, good for 45 […] More
