Deeper Analysis
November in Figures
November 30, 2017
The dollar fell mostly during November, constituting a change in direction from movements in October. Nonetheless, U.S. stocks recorded impressive gains just as they had the month before. Japanese share prices also climbed sharply in November, but many European stock markets declined. Investors became more confident that the Federal Reserve would hike interest rates in […] More
Central Bank Watch
First South Korean Central Bank Rate Hike in Around Six Years
November 30, 2017
The South Korean Base Rate was lifted to 1.50% from 1.25% but accompanied by a comparatively dovish statement that doesn’t guarantee subsequent increases soon: As it is forecast that inflationary pressures on the demand side will not be high for the time being, while the domestic economy is expected to continue its solid growth, the […] More
New Overnight Developments Abroad - Daily Update
New Highs in the U.S. Stock Market on Final Day of November
November 30, 2017
There’s been the usual ton of data released on this final day of the month, but other matters seem to be lifting confidence. Another gradual Federal Reserve interest rate hike in December seems increasingly probable. For once, news from the Brexit talks has been encouraging. Progress continues on the U.S. tax bill’s movement through Congress. […] More
New Overnight Developments Abroad - Daily Update
Sharp Rise in Long-Term Interest Rates
November 29, 2017
Ten-year sovereign debt yields this Wednesday have climbed nine basis points in the U.K. and five basis points in the United States and Germany. The 10-year Japanese JGB yield bucked the trend and has dipped a basis point to 0.02%. Janet Yellen, the outgoing Fed Chair, delivered her final major congressional testimony, asserting that economic […] More
Foreign Exchange Insights and Next Week
U.S. Populism Already Depressing the Dollar
November 28, 2017
The dollar has lost approximately 13% against the euro, 6% relative to the yen, and 9% on a trade-weighted basis compared to its strongest levels since the November 2016 U.S. election. The dollar has declined so far this quarter by a bit about 2% against the common European currency on top of a 3.3% drop […] More
New Overnight Developments Abroad - Daily Update
Stronger Dollar and Stocks
November 28, 2017
Financial markets are in a healthy mood as November winds down. The dollar shows gains of a half percent or less against the euro, yen, Swissie, sterling, and Aussie dollar. The DOW is up 0.3%. Share prices have advanced 0.9% in the U.K., 0.6% in Spain, 0.5% in Switzerland and France, and 0.4% in Germany. […] More
New Overnight Developments Abroad - Daily Update
Little Change in Dollar after Long Thanksgiving Holiday Break
November 27, 2017
The dollar turned into the final week of November, showing no overnight net movement against the loonie, Australian dollar or sterling, a dip of 0.1% against the euro and a 0.1% uptick relative to the Swiss franc. Slightly larger declines of 0.4% have occurred against the kiwi and yen. Commodity prices fell rather significantly. West […] More
New Overnight Developments Abroad - Daily Update
Euro See-Saws After German Coalition Talks Break Down
November 20, 2017
In Germany’s national parliamentary election on September 24, the center-right Christian Democratic Party of Chancellor Angela Merkel won it smallest share of the vote since 1949, but its center-left grand coalition partner, the Social Democratic Party, also suffered big losses and got its smallest voter share since the Second World War. The SDP had ruled […] More
Foreign Exchange Insights and Next Week
Next Week
November 17, 2017
Central Banks: There are monetary policy meetings in South Africa, Hungary and Colombia. Meetings of recent meetings will be released at the Fed, ECB and Reserve Bank of Australia. Fed Chair Yellen delivers a speech as do ECB President Draghi, Swiss National Bank Jordan and RBA Governor Lowe. Holidays: Revolution Day in Mexico and Black […] More
New Overnight Developments Abroad - Daily Update
Concerns Return to Market
November 17, 2017
Questions have resurfaced about the strength of China’s economy. Retail sales, industrial production, and business investment posted slower on-year gains in October, and the People’s Bank of China has injected heavy amounts of liquidity to the banking system via reverse repurchase agreements. The Mueller probe into Russian influence in the 2016 U.S. elections appears to […] More
