New Overnight Developments Abroad - Daily Update
Asian Stocks and Yuan Falter on Last Day of G7 Summit… Germany Gets Some Bad Economic News
August 26, 2019
The Chinese yuan slumped 0.7% against the dollar, touching a new intra-day low of 7.1527. Stock markets around the Pacific Rim fell Monday by 2.2% in Japan, 1.9% in Hong Kong, 1.6% in South Korea, 1.7% in Taiwan, 1.5% in Singapore, 1.3% in Australia and New Zealand and 1.2% in China. U.S. President Trump, who […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu
August 23, 2019
Central Banks: Monetary policy reviews scheduled in Hungary, South Korea, Israel and Iceland. Lowe and Debelle of the Reserve Bank of Australia and Suzuki of the Bank of Japan speak publicly. Events and Holidays: The annual Central Bank Symposium at Jackson Hole, Wyoming ends on Saturday, and the annual Group of Seven summit begins that […] More
Central Bank Watch
Central Bank of Sri Lanka’s Interest Rates Cut by 50 Basis Points in Mostly Unexpected Move
August 23, 2019
Friday brought word of another central bank rate cut. This time it involved the Central Bank of Sri Lanka. The rate cut size was 50 basis points each to the key deposit rate (now 7.0%) and lending rate (now 8.0%). The cut follows a similarly sized reduction engineered in May, which together almost offset a […] More
New Overnight Developments Abroad - Daily Update
Dollar Slightly Firmer as Markets Await Speeches from Powell and Other Central Bankers
August 23, 2019
The dollar climbed overnight by 0.4% against the Swiss franc and sterling and by 0.2% relative to the yen, euro and loonie. It’s unchanged on balance against the yuan but touched a new 11-year intra-day high of 7.0987 against the Chinese yuan. The peso and Australian dollar are unchanged against the greenback, while the kiwi […] More
Central Bank Watch
Rate Cut at Bank Indonesia
August 22, 2019
There’s been an unexpected second consecutive cut of Bank Indonesia’s 7-day reverse repo rate, which now becomes 5.50%. Overnight deposit and lending rates were also sliced 25 basis points to 4.75% and 6.25%. Indonesia’s central bank interest rates had been lifted by 175 basis points last year, with the final move in November, in order […] More
New Overnight Developments Abroad - Daily Update
Sterling Up, Yuan Down
August 22, 2019
Sterling strengthened 0.9% against the dollar and euro overnight. This appreciation was a response to remarks by German Chancellor Merkel after talks with British Prime Minister Johnson. Merkel considers a solution on the contentious border issue between Northern Ireland and the rest of Ireland still possible by the October 31st Brexit deadline. The Chinese yuan […] More
Deeper Analysis
Diminishing Dollar Swings Since Trump Became a Market Factor
August 21, 2019
Since emerging on the geopolitical stage as a candidate for U.S. president around mid-2015, Donald Trump has personified uncertainty in style and substance. He is a leader without equal in generating event risk for market players. There’s a lot of money to be made from making money in the market only if one had advance […] More
New Overnight Developments Abroad - Daily Update
Wednesday Brings Mix of Data and Market Movements
August 21, 2019
Compared to closing dollar levels on Tuesday, the greenback has declined 0.4% against the loonie and peso and by 0.3% relative to the Australian dollar. Alternatively, the U.S. dollar is up 0.3% against the Swiss franc, 0.2% versus the yen and sterling and 0.1% against the yuan. Once more the euro shows no net change […] More
Foreign Exchange Insights and Next Week
Fed Policy, Dollar Policy and Trade Policy
August 20, 2019
Among the most consistent themes of Donald Trump from his time as private sector businessman through his candidacy for president and since becoming president of the United States is the view that the country is competing on an unfair trading playing field. Surpluses are good regardless of context. Deficits are bad, and tariff wars can […] More
New Overnight Developments Abroad - Daily Update
Yesterday’s Rebound in Sovereign Debt Yields Trimmed
August 20, 2019
Ten-year sovereign debt yields slipped Tuesday by five basis points in Germany and the United States, three bps in Great Britain and a basis point in Japan. Yields had dropped very sharply earlier in August but staged a rebound yesterday. Without government stimulus, investors fear a continuing global growth slowdown and possibly even a recession. […] More
