Foreign Exchange Insights and Next Week
Muted Movement in EUR/USD and USD/JPY Pairs During New York Trading Hours
May 30, 2018
For decades, I’ve been recording at least two quotes a day in major dollar relationships. Sometimes, I take down more than two quotes, but I always get a quote shortly after 4 PM and an earlier record around 7:30 in the morning. The latter quotes are the ones I use for my daily rate series […] More
Central Bank Watch
Bank of Canada Moves Closer to Enacting a Fourth Rate Hike
May 30, 2018
The Bank of Canada’s overnight rate hike had earlier been raised by 25 basis points each in July and September of 2017 and on January 17, 2018. While leaving the rate at 1.25% at this week’s scheduled policy review, officials in a released statement observed that both inflation and real activity had lately been somewhat […] More
Central Bank Watch
Second Indonesian Central Bank Rate Hike Within Two Weeks
May 30, 2018
In follow-up to the 25-basis point tightening done on May 17th, Bank Indonesia’s Board lifted the 7-day reverse repo rate by 25 basis points to 4.75% after an unscheduled meeting. The deposit facility and lending facility rates were also raised by 25 basis points to 4.0% and 5.5%. Although the economy is performing soundly, a […] More
New Overnight Developments Abroad - Daily Update
Less Fear about Italy, More Fear Over Trade
May 30, 2018
Highly successful Italian 10-year and 5-year sovereign debt auctions following growing incohesion among anti-euro political elements in that country alleviated one source of market strains. 10-year government bond yields fell by 24 basis points in Italy, 21 bps in Greece, 9 bps in Portugal and 4 bps in Spain. Yields, by contrast, rose 11 bps […] More
