New Overnight Developments Abroad - Daily Update
Dollar Softens Further
August 22, 2018
The dollar lost some further modest ground against major currencies like the euro (0.3%), Swiss franc and Canadian dollar (0.2%), and New Zealand dollar (0.1%). The dollar edged up 0.1% against the Aussie dollar and sterling, by contrast. U.S. stocks remained buoyant yesterday on strong corporate earnings prospects, but investor misgivings about Trump’s legal uncertainties […] More
Central Bank Watch
Hungary’s Monetary Policy Held Unchanged
August 21, 2018
The Monetary Council at Magyar Nemzeti Bank kept its interest rate structure unchanged. Hungary’s deposit rate has been at -0.15% since a 10 basis point cut last September, and the overnight and one-week collateralized lending rates have been at 0.90% since a cut of 15 bps in May 2016. A released statement also keeps other […] More
New Overnight Developments Abroad - Daily Update
A Wide-Ranging Trump Interview Depresses the Dollar
August 21, 2018
In an exclusive interview with Reuters, President Trump criticized Fed Policy as insufficiently accommodative and having an unconstructive influence on ongoing trade talks. Regarding Fed Chairman Powell, whom he appointed previously to replace Janet Yellen, he answered his own rhetorical question: ” Am I happy with my choice? I’ll let you know in four years” when […] More
Foreign Exchange Insights and Next Week
U.S. Trade Policy and the Dollar
August 20, 2018
Even as a candidate in 2015-16, President Trump identified reducing the U.S. merchandise trade deficit as a top economic policy goal. There have been several other U.S. administrations in the floating exchange rate era that have taken steps to cut America’s external imbalance, but the Trump administration is taking an approach that hasn’t put the […] More
New Overnight Developments Abroad - Daily Update
Few Data Releases, Firmer Share Prices and Metals, Steady Oil and Sovereign Debt Yields
August 20, 2018
Dollar/yen is unchanged. The dollar is down 0.3% against the yuan but has risen 0.3% against the euro, 0.2% relative to the Australian dollar, kiwi, and Mexican peso, and 0.1% versus the Swiss franc, loonie and sterling. Equities climbed Monday by 1.9% in Indonesia, 1.5% in Hong Kong, 1.1% in South Korea, 0.9% in India […] More
Foreign Exchange Insights and Next Week
Next Week
August 17, 2018
Holiday and Special Event: The Islamic Festival of the Sacrifice will be observed Wednesday in countries such as Indonesia, Singapore, and India. The Kansas City Federal Reserve’s sponsored symposium in Jackson Hole, Wyoming runs from August 23 through August 25. This year marks the 40th anniversary of this annual gathering of top central bankers, economists […] More
New Overnight Developments Abroad - Daily Update
Fresh Bout of Weakness in Turkish Lira
August 17, 2018
The dollar was little changed on net overnight against the the euro, Swiss franc, sterling, yuan, Canadian dollar, Australian dollar or New Zealand dollar, but it jumped 4.8% against the Turkish lira. Turkey’s finance minister said capital controls or a deal with the IMF won’t been necessary. President Trump is considering additional tariffs against Turkey […] More
New Overnight Developments Abroad - Daily Update
Yuan Rebounds and U.S. Stocks Set to Rise Too
August 16, 2018
Equity losses early in Asia’s session were trimmed after an announcement from China’s Minister of Commerce Wang Shouwen that China accepts the invitation from U.S. Undersecretary of the Treasury Malpass to resume trade talks. Talks broke down in June. A delegation of Chinese officials will visit the U.S. late this month for new talks, kindling […] More
Central Bank Watch
Indonesia’s Fourth Central Bank Interest Rate Hike Since Mid-May
August 15, 2018
In the face of a wider current account deficit in Indonesia, intensifying global trade tensions, and Turkey’s crisis, which makes many emerging economies more vulnerable, Bank Indonesia’s key 7-day reverse repo rate was lifted by another 25 basis points to 5.50%. The deposit facility and lending facility rates also went up 25 basis points to […] More
New Overnight Developments Abroad - Daily Update
Global Equities Slide Amid Policy Changes in Turkey, China, and Indonesia
August 15, 2018
Turkey raised tariffs on a slew of U.S. imported goods, including the doubling of those on cars and alcoholic beverages. In a move to boost the beleaguered lira by impeding short selling of the currency, Turkish authorities also imposed curbs on currency swaps and similar vehicles. The U.S. dollar is down 3.3% against the lira […] More
