New Overnight Developments Abroad - Daily Update
End-Month Data Blizzard and Sterling Strengthens
April 30, 2019
A lot of economic statistics around the world gets released on the final day of each month. The main market development this Tuesday has been a 0.7% overnight rise of sterling against the dollar, reflecting reports that talks between Prime Minister May and the Labour Party on Brexit have made surprising progress. It remains to […] More
New Overnight Developments Abroad - Daily Update
Sharp Drop this Month in Euroland Economic Sentiment
April 29, 2019
Economic sentiment in the euro area recorded the steepest month-to-month deterioration since December, printing at a 31-month low of 104.0 versus 105.6 in March and 111.8 last June. The biggest hit was absorbed by industrial sector sentiment, which fell by 2.5 points to -4.1. Construction, retail, and consumer confidence also lost ground in April, while […] More
Foreign Exchange Insights and Next Week
Next Week
April 26, 2019
Central Banks: Monetary policy meetings are scheduled next week at the Federal Reserve, Bank of England and Czech National Bank. Fed Chairman Powell holds a press conference on Wednesday following the FOMC announcement, and Vice Chairman Clarida, Williams, Evans, Bullard, Mester, Daly and Kaplan also will be speaking publicly next week. So will Bank of […] More
Central Bank Watch
Central Bank of Russia Hints of Coming Interest Rate Hike
April 26, 2019
Officials at the Central Bank of the Russian Federation left the one-week repo rate unchanged at 7.75% for a third straight policy review. Such had been raised by 25 basis points each last September and December. But a released statement expressed confidence that a nascent upturn in inflation was nipped early by those tightenings and […] More
Deeper Analysis
A Strange and Unexpected U.S. GDP Report
April 26, 2019
U.S. real GDP grew 3.2% at a seasonally adjusted annualized rate (SAAR) last quarter, which is close to a percentage point higher than was predicted. Year-on-year growth in the first quarter was also 3.2%. The acceleration of quarter-on-quarter growth to 3.2% from 2.2% SAAR did not stem from the usual suspects. Real final private domestic […] More
New Overnight Developments Abroad - Daily Update
Several Japanese Data Reported but Investors Marking Time Ahead of U.S. Figures
April 26, 2019
Shortly before the first release of U.S. first-quarter GDP, the dollar showed no net overnight change against the euro, loonie or sterling. There were 0.1% upticks relative to the yen, Swiss franc and peso, a 0.1% downtick vis-a-vis the yuan and drops of 0.5% against the kiwi and 0.3% versus the Australian dollar. European share […] More
Central Bank Watch
Bank of Japan Keeps Rates Policy Unchanged and Updates Forecasts
April 25, 2019
The third scheduled Japanese monetary policy review of 2019 coincided with publication of the quarterly Outlook for Economic Activity and Prices, in which the baseline projections have been updated for GDP growth and core CPI inflation (excluding fresh food and adjusted to exclude as well the effect of a 2-percentage point consumption sales tax due […] More
New Overnight Developments Abroad - Daily Update
Stronger Dollar, Weaker Stocks, and Four Central Bank Meetings
April 25, 2019
The dollar advanced overnight by 0.4% against the yuan and peso, 0.3% relative to the euro, 0.2% versus the Swiss franc, sterling and Australian dollar, and 0.1% vis-a-vis the loonie. One currency against which the dollar fell was the yen, which climbed 0.3%. Share prices dived 2.4% in China to a 3-week low on continuing […] More
Central Bank Watch
Bank of Canada’s Overnight Interest Rate Target Kept at 1.75%
April 24, 2019
As analysts expected, no change was made today in Canadian central bank interest rates following the third of eight scheduled monetary policy reviews. Officials engineered rate normalization in five 25-basis point steps between July 2017 and October 2018 but made an important change to its forward guidance at its March 6th review. As recently as […] More
New Overnight Developments Abroad - Daily Update
Australian Dollar Sinks 1% against U.S. Counterpart
April 24, 2019
Australian dollar weakness, evidence of gloomier business conditions in Germany, and a review of Canadian monetary policy highlight today’s market and economic developments. Softer-than-expected consumer price inflation depressed Australia’s currency by spurring speculation that the Reserve Bank of Australia might cut its 1.5% Official Cash Rate further. Consumer prices were flat on quarter in 1Q, […] More
