Central Bank Watch
Reserve Bank of Australia
July 3, 2018
As was expected, Australia’s Official Cash Rate (OCR) was left at the record low of 1.50% that it has been at since a 25-basis point cut in August 2016. A released statement from Governor Lowe exhibits no near-term possible consideration of raising such. Several risk factors and other justifications are mentioned to keep the status […] More
New Overnight Developments Abroad - Daily Update
Softer Dollar… No Respite from Trade War Threat
July 3, 2018
A left-leaning candidate and critic of U.S. President Trump, Andrea Manuel Lopez Obrador, scored a huge win in Mexico’s presidential election with a majority 53% of the popular vote. Terms are for six years. The peso rallied on the news. A U.S. sanction-enforced program against Iran has WTI oil trading above $75.0 per barrel for […] More
Foreign Exchange Insights and Next Week
Dollar at Mid-2018
July 2, 2018
Unlike several past eras, the dollar is not currently experiencing a multiyear directional bias. Against other currencies monitored regularly on this web site, the U.S. currency rose in more instances than it fell during 2016. It depreciated in all instances last year but climbed, except against the yen, during the first half of 2018. To […] More
Deeper Analysis
U.S. Advantage Versus Euroland Swelled Last Month in Manufacturing
July 2, 2018
A 5.3-point differential in June between the ISM-compiled U.S. manufacturing purchasing managers index and the IHS-compiled euro area manufacturing PMI represented the widest U.S. advantage in 43 months and was 2.1 points greater than the spread in May. The U.S. PMI score of 60.2 was at a 4-month high, while Euroland’s 55.4 reading constituted the slowest […] More
New Overnight Developments Abroad - Daily Update
Third Quarter Begins with Dramatic Dollar Appreciation and Stock Market Losses
July 2, 2018
The dollar strengthened 1.1% versus the peso and kiwi, 0.8% relative to the yuan and Australian dollar, 0.7% against the euro and sterling, 0.6% vis-a-vis the Swiss franc, 0.4% against the loonie but just 0.1% versus the yen. Share prices slumped 2.5% in China, 2.4% in South Korea, and 2.2% in Japan as well as […] More
