New Overnight Developments Abroad - Daily Update
Marking Time
September 17, 2019
Ahead of the FOMC’s interest rate decision on Wednesday, the dollar moved overnight by no more than +/-0.1% against the euro, yen, Swiss franc, loonie and sterling. The dollar separately rose 0.5% versus the Australian dollar after a signal that Aussie monetary policy might be eased further, and gains were made of 0.4% relative to […] More
New Overnight Developments Abroad - Daily Update
Attack on Saudi Refinery and Oil Field Sends Price of Oil Up Nearly 10%
September 16, 2019
More than 15 drone and cruise missile attacks against the largest oil refinery and an oil field in Saudi Arabia on Saturday is likely to impede over half that country’s production. The attack is believed to have been orchestrated by Iran or perhaps Iraq, but culpability hasn’t been firmly established. U.S. President Trump has threatened […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu (September 14-20, 2019)
September 13, 2019
Central Banks: Monetary policy reviews take place next week in the United States, Japan, U.K., Switzerland, Taiwan, Indonesia, Thailand, Brazil, and Norway. Minutes of the last Australian central bank policy meeting will be published. The FOMC is likely to cut the fed funds rate target and will update macroeconomic and interest rate projections, and Chairman […] More
New Overnight Developments Abroad - Daily Update
Swing Continues Away from Safe Haven Assets
September 13, 2019
Ten-year sovereign debt yields increased this Friday by six basis points in Japan, 5 bps in the U.K., and 3 basis points in the U.S. and Germany. The dollar fell overnight by 1.0% against sterling, 0.5% relative to the Swiss franc, 0.3% vis-a-vis the euro, 0.2% versus the peso and 0.1% against the yen and […] More
Uncategorized
Rate Cut in Turkey
September 12, 2019
Policymakers at the Central Bank of the Republic of Turkey slashed the one-week repo rate by a greater-than-expected 325 basis points in follow-up to a 425-basis point cut in July from a peak of 24.0% that had prevailed since a 625-basis point increase in September of 2018. The rate now becomes 16.5%, which the monetary […] More
Central Bank Watch
ECB Enhances Stimulus
September 12, 2019
Policymakers at the European Central Bank as expected cut the deposit rate by 10 basis points to minus 0.50%, announced an open-ended asset purchase program to start in November at EUR 20 billion per month, said targeted LTRO operations will carry the average deposit rate, and introduced a a 2-tiered system of reserve remuneration in […] More
New Overnight Developments Abroad - Daily Update
Markets React to ECB Stimulus, U.S. CPI Data, and Continuing Hopes on Trade Talks
September 12, 2019
Policymakers at the European Central Bank as expected cut the deposit rate by 10 basis points to minus 0.50%, announced an open-ended asset purchase program to start in November at EUR 20 billion per month, said targeted LTRO operations will carry the average deposit rate, and introduced a a 2-tiered system of reserve remuneration in […] More
New Overnight Developments Abroad - Daily Update
Better Investor Mood Persisting
September 11, 2019
Share prices advanced overnight by 1.8% in Hong Kong, 1.6% in Singapore, 1.0% in Japan, 0.8% in South Korea, 0.7% in Indonesia and 0.4% in India and Australia. China, down 0.4%, was an exception to this upward trend. Stock markets in Europe so far show gains of 0.9% in the U.K., 0.7% in Germany, 0.4% […] More
New Overnight Developments Abroad - Daily Update
Safe Haven Assets in Lessening Demand
September 10, 2019
Some of the recent uncertainties for investors seem somewhat less anxiety-provoking. British Prime Minister Boris Johnson seems to now be intent on working out a Brexit deal with the EU instead of a no-deal exit. Reports have surfaced that the Merkel government in Germany is considering a relaxation of its rigid insistence on balancing the […] More
New Overnight Developments Abroad - Daily Update
Atypically High Amount of Data Reported This Monday
September 9, 2019
Data releases rather than market action were in today’s spotlight. Japanese real GDP growth last quarter was revised downward by a half percentage point to an annualized 1.3% from the first quarter. Business investment and exports were weaker than estimated initially. Real GDP was 1.0% greater than in the second quarter of 2018, and the […] More
