New Overnight Developments Abroad - Daily Update
Oil Prices Sink Sharply to One-Year Low
November 23, 2018
The price of West Texas Intermediate crude oil dived 6.9% to $50.44 per barrel. Gold has fallen 0.4%. There was no trading in Japan due to the Labor Thanksgiving holiday. The dollar edged 0.2% lower against the yen overnight but rose 0.4% against the euro, 0.3% relative to sterling, and 0.2% vis-a-vis the Swiss franc. […] More
Central Bank Watch
South African Reserve Bank Tightens
November 22, 2018
The South African Reserve Bank surprised markets with an unexpected 25-basis point increase of the repo rate to 6.75% after their sixth and final planned policy review of 2018. This was the first rate change since a cut of 25 basis points last March. Officials want to head of rising inflation expectations amid inflation stubbornly […] More
New Overnight Developments Abroad - Daily Update
A Stronger Pound on Brexit Hopes
November 22, 2018
The dollar has declined 0.7% against sterling. European Council President Tusk kindled hopes for a Brexit deal, declaring, that a deal “has been agreed at negotiators’ level and agreed in principle at political level.” The British Ftse has fallen 1.0%, and the 10-year British gilt yield climbed four basis points. With the United States celebrating […] More
New Overnight Developments Abroad - Daily Update
An Unrepresentative Day
November 21, 2018
Equities have rebounded but just partly from earlier steep losses this week. Moreover, being the day before the U.S. Thanksgiving, trading is distorted and should probably not be viewed as representative of either economic and political fundamentals or of the state of investor psychology. U.S. stocks are up less sharply than those in Germany, Canada […] More
New Overnight Developments Abroad - Daily Update
Intensifying Market Pessimism
November 20, 2018
Equities are taking a beating around the world, with losses exceeding 1.0% in Europe, Japan, and the United States. WTI crude oil is down 2.9%, and the value of crypto currencies is crumbling. The dollar is generally firmer in this flight to safety. Ten-year U.S. treasury and German bund yields have edged lower. British gilt […] More
New Overnight Developments Abroad - Daily Update
Softer Equities and No Trade Deal Yet
November 19, 2018
Stocks have begun another week on a downbeat. The DOW is off slightly more than 1.0%. Share prices fell 0.6% in Germany, France and Australia but firmed 0.7% in Japan. The dollar is softer, too, with losses of 0.4% versus the euro, 0.3% vis-a-vis the yen and sterling, and 0.2% against the Canadian dollar. However, […] More
Foreign Exchange Insights and Next Week
Next Week
November 16, 2018
Central Banks: Monetary policy reviews will occur in Hungary and South Africa. Minutes from the last policy meetings will be released by the European Central Bank and Reserve Bank of Australia. RBA Governor Lowe, BOJ Governor Kuroda, and NY Fed President Williams speak publicly. Holidays and Special Events: Indonesia celebrates the birthday of Muhammed on […] More
Central Bank Watch
Bank of Mexico Tightens to Contain Inflation
November 16, 2018
The Bank of Mexico raised the overnight interbank rate by another 25 basis points, citing significant peso depreciation since the last policy review, concerns regarding the incoming administration’s policy intentions, above target inflation, indications of higher expected inflation, recent downgrades by some ratings agencies of Mexico’s debt rating outlook, and likely future increases in global […] More
New Overnight Developments Abroad - Daily Update
Mixed Dollar
November 16, 2018
The exit of British officials protesting the Brexit deal terms did not snowball, and Prime Minister May remains in power for now. Sterling rebounded 0.3% against the dollar and euro. The Ftse has lost 0.3%, and the 10-year British gilt yield climbed four basis points. The dollar also fell 0.3% against the yen and 0.1% […] More
Central Bank Watch
A Fifth Straight Filipino Central Bank Interest Rate Hike
November 15, 2018
A desire to counter perceived upside inflation risks such as the rice tariffication bill, the suspension of the oil excise tax, wage pressures, and elevated inflation expectations justified a further hike of Bangko Sentral ng Pilipinas’ overnight reverse repo rate to 4.75% from 4.5%, according to a released central bank statement. Officials also felt obliged to […] More
