Deeper Analysis
July in Figures
July 31, 2018
Net dollar movement against currencies in other well-developed economies was modest in July, but the U.S. currency extended gains against developing country monies. The rise in long-term U.S. interest rates pulled up other sovereign debt yields, blunting the impact on rate differentials. The Bank of Canada was the only central bank examined for this update […] More
Central Bank Watch
Bank of Japan
July 31, 2018
The Bank of Japan did not change its policy interest rates of negative 0.1% on overnight Policy-Rate balances or about zero percent on the 10-year JGBs. In controlling the yield curve, officials still expect to purchase about 80 trillion yen of JGBs per year, and the quantitative settings for purchases and/or holdings of ETFs, J-Reits, […] More
New Overnight Developments Abroad - Daily Update
Exhausting Barrage of Data and Developments on Final Day of July
July 31, 2018
The dollar recovered 0.4% against the yen while sliding 0.3% relative to the euro and Australian dollar, 0.2% versus sterling and 0.1% vis-a-vis the loonie and Swiss franc. The Bank of Japan changed the policy framework only marginally, which allowed the worried JGB market to settle down and the 10-year yield to slide back four […] More
New Overnight Developments Abroad - Daily Update
Big Rise in Sovereign Debt Yields Ahead of BOJ, FOMC, and BOE Policy Reviews Later This Week
July 30, 2018
Ten-year sovereign debt yields climbed so far today by 7 basis points in the U.K., 5 bps in Germany, France, Italy and Spain, and 3 bps in the United States. Share prices fell in the Pacific Rim by 0.7% in Japan, 0.8% in New Zealand, 0.5% in Hong Kong and Singapore, and 0.4% in Taiwan […] More
Foreign Exchange Insights and Next Week
Next Week
July 27, 2018
Central Banks: The Federal Reserve, Bank of England, and Bank of Japan lead a list of central banks reviewing monetary policy next week that also includes centrals in India, the Czech Republic, Sri Lanka, Brazil, and Mexico. An updated BOJ Outlook will be published, and Governor Kuroda will hold a press conference. Governor Carney of […] More
New Overnight Developments Abroad - Daily Update
Dollar, U.S. Stocks, and Treasury Yields Little Changed After Strong U.S. GDP Report
July 27, 2018
U.S. GDP expanded 4.1% last quarter at a seasonally adjusted annualized rate. That was the fastest quarterly pace since the third quarter of 2014, but analysts had anticipated such a figure. Personal consumption, non-residential investment and government spending climbed 4.0%, 7.3% and 2.1%, respectively. Net foreign demand augmented the growth rate by 1.1 percentage points […] More
Central Bank Watch
No Change in ECB Policy Stance
July 26, 2018
The Governing Council’s fifth of eight scheduled meetings in 2018 ended as expected with no change in its policy stance. A released statement is upbeat about prospects for inflation rising back to its targeted pace but balances that confidence with the continuing assertion that it is conditioned upon a continuing stimulative policy — The underlying strength […] More
New Overnight Developments Abroad - Daily Update
Facebook Plunges, ECB and OPEC Review Things, and a U.S.-EU Trade Accord Is More Truce than Agreement
July 26, 2018
The ballooning credibility gap of Facebook finally hit the company’s share price, which has tumbled 19.4% so far today from $217.50 to $178.28. Alphabet, the parent of Google, is down 4.3%, but the DOW is up 0.5%. The ECB Governing Council reviewed its policy stance and decided not to change such. The ECB interest rate […] More
New Overnight Developments Abroad - Daily Update
Softer Dollar and Share Prices
July 25, 2018
The dollar fell 0.8% overnight against the peso and 0.5% versus the yuan, and it has slipped 0.3% against the loonie, 0.1% vis-a-vis the Australian dollar, and 0.2% relative to the yen, euro, Swiss franc, kiwi, and sterling. Share price losses amount to 0.3% in Taiwan and South Korea, 0.8% in the U.K., 0.6% in […] More
Central Bank Watch
No Turkish Interest Rate Hike This Month
July 24, 2018
Amid a vicious circle of currency depreciation and accelerating inflation, policymakers at the Central Bank of Turkey had hiked their benchmark interest rate by 75 basis points in April, 300 bps at an unscheduled conference on May 24, and 125 bps on June 7. This restraint had slowed but not halted market trends. Inflation rose […] More
