Deeper Analysis
January 2018 in Figures
January 31, 2018
The euro ranged from a low of $1.1914 to a high of $1.2583 in January, averaging $1.2195 in the month and closing 3.4% stronger than its end-2017 level. Against the yen, the dollar ranged between JPY 113.41 and JPY 108.28 during the month, with a mean value of JPY 110.92 and a 3.1% net drop […] More
Central Bank Watch
FOMC Statement
January 31, 2018
The Federal Open Market Committee as assumed by market players decided to keep its 1.25-1.50% federal funds target range unchanged and did so by a unanimous 9-0 vote in the last meeting to be chaired by Janet Yellen. A statement released today at 19:00 GMT characterizes the labor market as improving, economic growth as solid, […] More
Central Bank Watch
FOMC Preview
January 31, 2018
Seven weeks have passed since the last FOMC meeting when the federal funds rate target range was hiked by 25 basis points for the fourth time since December 2016. The range then became 1.25 – 1.50% and is not expected to be lifted again at this, the first policy review of 2018 and the last […] More
New Overnight Developments Abroad - Daily Update
Between the State of the Union and Yellen’s Final FOMC Meeting
January 31, 2018
Reaction to President Trump’s first State of the Union address last night has been typically partisan. For good or bad, citizens have already solidified their impressions of him for however much longer he is their president. The next big event will be the FOMC’s released statement at 14:00 EST (19:00 GMT). No press conference follows, and […] More
New Overnight Developments Abroad - Daily Update
Yesterday’s Dollar Rebound Already Petering Out
January 30, 2018
The dollar‘s advance on Monday was trimmed by overnight losses of 0.5% against the Swiss franc, 0.3% relative to the euro and yen, 0.2% vis-a-vis the New Zealand and Australian dollars, and 0.1% versus the loonie and sterling. Investors want to see exactly what President Trump presents in tonight’s state of the union address and […] More
New Overnight Developments Abroad - Daily Update
10-Year U.S. Treasury and German Bund Yields Each Five Basis Points Higher
January 29, 2018
The 10-year Treasury yield exceeds 2.70% for the first time since mid-April 2014. The German 10-year bund yield matched the rise of its U.S. counterpart and has already climbed 25 basis points since end-2017 to 0.67%. Ten-year British gilt and Japanese JGB yields edged a basis point higher overnight as well. President Trump made a […] More
Foreign Exchange Insights and Next Week
Next Week
January 26, 2018
Central Banks: Monetary policy meetings are scheduled in the United States (the last one with Yellen as chair), Czech Republic, Chile, Colombia and Hungary. A summary of the Bank of Japan board meeting last week will be published. Iwata of the BOJ and Mersch of the European Central Bank speak publicly. Special Events: President Trump […] More
New Overnight Developments Abroad - Daily Update
Mr. Trump Goes to Davos
January 26, 2018
While at the World Economic Forum, President Trump in interview said some unexpected things, like he seeks a stronger, not weaker dollar, and expects the currency to strengthen eventually. Rarer yet, he seemed to apologize for tweets that may have ruffled U.S. relations with Great Britain. And finally, trade is fine, so long as it’s […] More
Central Bank Watch
Bank of Norway
January 25, 2018
The Bank of Norway kept its key policy rate steady at 0.50%, the level since a 25-basis point cut in March 2016 capped 175 basis points of easing since 2011. In a released statement, members of the executive board of the central bank asserted that “the outlook and the balance of risks for the Norwegian […] More
Central Bank Watch
Bank Negara Malaysia Implements First Interest Rate Hike Since May 2011
January 25, 2018
Since Malaysia’s last interest rate increase in 2011, there had been a pair of 25-basis point cuts in July 2014 and July 2016. But growth has been picking up and is expected to exhibit continuing upward momentum in 2018, with better support from exports and continuing strong domestic demand. Although inflation averaging 3.7% in 2017 […] More
