Central Bank Watch
Central Bank of the Republic of Turkey
January 18, 2018
Turkish central bank interest rates were not changed at the latest policy review. The one-week repo rate has been at 8.0% since a 50-basis point increase in November 2016. And the 9.25-7.25% overnight lending/borrowing rate corridor has existing since the lending rate was raised a year ago by 75 bps to 9.25%. Turkey is getting […] More
Central Bank Watch
Bank Indonesia
January 18, 2018
Indonesia’s seven-day repo rate of 4.25% since last September was again left unchanged. A released statement observes a more resilient domestic economy, including a sounder current account, low inflation supported by positive supply and demand factors and no major external pressures, ample capital inflows, a stable currency, and record reserves. The key central bank interest rate […] More
Central Bank Watch
Bank of Korea
January 18, 2018
South Korea’s central bank interest rate had been at 1.25% from June 2016 until late November of 2017 following five 25-basis point cuts in the space of 2-1/4 years. At the end of November, monetary authorities enacted their first increase since 2011, raising the rate by 25 bps to 1.5%. In doing so, the Bank […] More
New Overnight Developments Abroad - Daily Update
Dollar Down Marginally Even as 10-Year Treasury Yield Rises to 10-Month High
January 18, 2018
Released Chinese data were close to expectations. Real GDP grew 1.6% on quarter in 4Q, least in three quarters, but an on-year advance of 6.8% matched the 3Q result. Real economic growth in 2017 of 6.9% exceeded 2016’s 6.7% pace, marking the first calendar year acceleration since 10.6% in 2010 after 9.4% in 2009. Property […] More
Deeper Analysis
Fed Beige Book Review
January 17, 2018
The Federal Reserve today released findings from its latest survey of regional economic conditions, known as the Beige Book. It does this about two weeks prior to each of the eight scheduled FOMC meetings of the year. The latest report covers the period from roughly Thanksgiving to endyear. Economic growth was characterized a moderate in […] More
Central Bank Watch
Canada’s Third 25-Basis Point Central Bank Rate Hike in Six Months
January 17, 2018
The Bank of Canada’s Monetary Policy Council raised the overnight interest rate target to 1.25% from 1.0% today, following similar moves last September and July. A released statement revised upward projected GDP growth in 2018 and 2019 by 0.1 percentage point each to 2.2% and 1.6%. Growth has been led by domestic demand, whereas exports […] More
New Overnight Developments Abroad - Daily Update
Pause in the Action
January 17, 2018
Stocks show a calmer, healthier tone overnight following Tuesday’s roller-coaster ride that saw the DOW initially soar over 200 points and break above 26K to 26,086 but ultimately crash to a 10-point loss on the day. Share prices eased just 0.5% in Australia, 0.4% in Japan, 0.3% in South Korea and Singapore but firm 0.2% in […] More
New Overnight Developments Abroad - Daily Update
Dollar Lifts as U.S. Markets Reopen
January 16, 2018
Following the three-day U.S. holiday weekend, the dollar has recovered 0.4% against the kiwi, 0.3% versus the euro and sterling, 0.2% relative to the yen and Aussie dollar and 0.1% against the Swiss franc. The loonie and yuan are unchanged, and the peso advanced another 0.4%. Share prices rose 1.8% in Hong Kong, 1.0% in […] More
Foreign Exchange Insights and Next Week
Seasonality of the Dollar in Early January and Some Reflections on Rising Long-Term Treasury Yields
January 15, 2018
The dollar depreciated by 2.2% against the euro in the first half of January. That loss brings to three the streak of declines at the start of a calendar year. In the first January halves of 2016 and 2017, the dollar had on balance lost 0.5% and 0.6% relative to the common European currency. The […] More
Uncategorized
U.S. Markets Shut but Dollar Still Slides
January 15, 2018
The United States is observing the birthday of Martin Luther King, Jr. President Trump once again rejected the criticism that he’s a racist. The Bank of Japan has held a quarterly branch managers meeting and published its regional economic report. Three of the nine regions are experiencing improved conditions. Two regions are expanding, four are expanding […] More
