Central Bank Watch
First Swedish Monetary Policy Rate Hike since 2011
December 20, 2018
The Swedish Riksbank Executive Board raised its repo rate from -0.50% to -0.25%, marking the first rate hike since July 2011 and the first change since a 15-basis point cut in February 2016. The rate has been zero percent or lower since October 2014. A statement from the Board doesn’t anticipate another rate hike until […] More
New Overnight Developments Abroad - Daily Update
Softer Dollar on the First Day After the Fed’s Rate Hike
December 20, 2018
Markets did not take comfort from Wednesday’s FOMC interest rate hike or the upbeat economic prognosis of Chairman Powell. The dollar fell overnight by 0.6% against the euro, 0.5% relative to the yen and Swiss franc, 0.4% vis-a-vis sterling, 0.3% versus the Australian dollar, and 0.2% against the yuan and loonie. Share prices fared poorly […] More
Central Bank Watch
Markets Not Reassured by Today’s Signals from the Fed
December 19, 2018
The FOMC statement accentuated the U.S. economy’s strong trends of domestic demand and labor market conditions. Comments about inflation were not modified. Concessions to recent jittery markets, President Trump’s criticism that raising interest rates is inappropriate, and the tilt in global data from mostly better-than-expected to primarily softer-than-expected results were slight and worded in a […] More
Central Bank Watch
FOMC Preview
December 19, 2018
It’s been a very eventful period in the market during the 6-week FOMC cycle since the early November policy meeting, but notably the dollar only slipped 0.25% against the euro on balance. Outside of this oasis of stability, however, the ten-year Treasury yield is now 42 basis points lower than then, and the Dow Jones […] More
Central Bank Watch
Bank of Thailand Tightens for First Time Since August 2011
December 19, 2018
The Bank of Thailand’s one-day repo rate was lifted 25 basis points to 1.75% in an expected move. This was the first hike since August 2011 and the first rate change since a pair of 25-basis point cuts in March and April of 2015. According to a released statement, the rate hike was made in […] More
New Overnight Developments Abroad - Daily Update
Dollar Softer Ahead of FOMC Decision and After U.S. Current Account Release
December 19, 2018
Despite weaker data and pressure from Trump, the Federal Open Market Committee is expected to announce the fourth rate hike of 2018 later today but to couch such within more accommodative forward guidance regarding likely policy in 2019. The U.S. current account deficit jumped to $124.8 billion in the third quarter from $101.2 billion in […] More
New Overnight Developments Abroad - Daily Update
U.S. Share Prices Open Higher as Wednesday’s FOMC Decision Nears
December 18, 2018
The dollar is narrowly mixed with tiny downticks of 0.2% against the euro and yen and 0.1% relative to the Swiss franc, Aussie dollar and sterling offset by gains of 0.7% versus the kiwi and 0.5% against the peso. Stocks in the Pacific Rim tumbled 1.8% in Japan, 2.2% in Singapore, 1.4% in Hong Kong, […] More
New Overnight Developments Abroad - Daily Update
Market Worries about Trump
December 17, 2018
The DOW has fallen more than 1.0% to start the new week and to below 24,850, territory not seen since last March. President Trump is the common element in a slew of developments worrying investors. The threat of a presidential veto against any budget bill that doesn’t fund a border wall may shut down the […] More
Foreign Exchange Insights and Next Week
Next Week
December 14, 2018
As officials and the private sector rush to get the month’s work done before yearend holidays, the third week of December tends to be crowded with activity, and 2018 is no exception. Central Banks: Central bank policy reviews in the United States, Japan, the U.K., Sweden, Indonesia, Hungary, Taiwan, Thailand, Mexico, Colombia, and the Czech […] More
New Overnight Developments Abroad - Daily Update
Weak Data Intensify Investor Flight from Risky Assets
December 14, 2018
Equities fell 2.0% in Japan, 1.9% in Hong Kong, 1.5% in China, 1.3% in New Zealand and South Korea, 1.1% in Australia and Singapore, and 0.9% in Taiwan. Share prices are also down 1.0% in the U.S. and Switzerland, 0.8% in France, 0.7% in Italy, and 0.6% in Canada and Germany. The flight to safety […] More
