New Overnight Developments Abroad - Daily Update
Waiting for U.S. and Canadian Labor Market Statistical Releases
October 6, 2017
Investors await the U.S. Labor Department jobs report for September at 08:30 EDT, knowing that it will be badly distorted by the hurricanes that hit Texas and Florida. Canadian labor market figures are due also. Concern over Spain’s uncertain political tension continues to fester, tempering enthusiasm that otherwise would arise from upbeat data like today’s […] More
New Overnight Developments Abroad - Daily Update
Lessening Market Impact from Spanish Political Strains
October 5, 2017
Spain’s stock market has rebounded 1.7% after government officials in Madrid took a hard line against negotiations with Catalan. In contrast, investors have become even more worried about the possibility that British Prime Minister Theresa May may before yearend get the gong from hard-line Brexiters in her own Conservative Party. The dollar advanced 0.9% against […] More
Central Bank Watch
Reserve Bank of India
October 4, 2017
The Indian repo rate was left at 6.0% by a 5-1 vote, with one dissenter favoring a cut of 25 basis points. At the previous meeting in early August, the rate had been sliced by 25 basis points. The rate previously was reduced by 50 basis points in two moves during 2016 and by a […] More
Central Bank Watch
Bank of Iceland
October 4, 2017
Monetary officials in Iceland implemented a 25-basis point cut of the 7-day term deposit rate after today’s policy review. This reduction to 4.25% follows similar cuts in May and June. While officials consider a generally tight stance appropriate, today’s released statement observes that “developments in inflation and inflation expectations and diminishing demand pressures indicate that […] More
Central Bank Watch
Bank of Poland
October 4, 2017
Poland’s central bank reference interest rate has been at 1.5% since a series of reductions ended with a pair of 50-basis point cuts in January and March 2015. The benchmark had been at 4.75% prior to November 2012. Poland’s Monetary Policy Council released a statement after this week’s policy review that noted continuing low core […] More
Deeper Analysis
Faster Non-Manufacturing Growth in the U.S. and Euroland
October 4, 2017
The Institute of Supply Management reported a big 4.5-point jump during September in the U.S. non-manufacturing purchasing managers index. At 59.8, such signaled the quickest expansion of activity since August 2005. Sub-components for new business, prices, and production increased by 8.4, 5.9 and 3.8 points, respectively. IHS Markit Economics calculated a 1.1-point increase in Euroland’s […] More
New Overnight Developments Abroad - Daily Update
Somewhat Softer Dollar
October 4, 2017
The dollar overnight lost 0.6% against the peso, 0.5% relative to the Aussie dollar and yen, 0.4% versus the the kiwi, 0.3% against the the euro and loonie and 0.2% against the Swiss franc and sterling. President Trump, who travels to Las Vegas, is said to be closer to making a decision on his appointment […] More
Foreign Exchange Insights and Next Week
U.S. Economic Performance Under Seven Different Fed Chair-Persons
October 3, 2017
There have been only seven leaders of the Federal Reserve System since April 1951, a period spanning two-thirds of a century. William McChesney Martin was appointed by Truman and served from April 2, 1951 when his age was 44 until January 31, 1970 when it was 63. His father had been a central banker, but […] More
Central Bank Watch
National Bank of Romania
October 3, 2017
In seven equal increments, Romania’s central bank policy interest rate was halved to 1.75%, the current level, from 3.5% between August 2014 and May 2015. The latest policy review left that key benchmark at 1.75% but raised the standing overnight deposit rate to 0.5% from 0.25%. In conjunction with a decision to leave the standing […] More
Central Bank Watch
Reserve Bank of Australia
October 3, 2017
The Official Cash Rate of the RBA was last reduced in August 2016, the second of two 25-basis point cuts that year. The OCR previously had been cut from a peak of 3.5% by 50 basis points in the final quarter of 2012, another 50 bps during 2013 and 50 bps in 2015, and the […] More
