New Overnight Developments Abroad - Daily Update
Sterling Hovering Lower around $1.30 Amid Brexit Confusion
October 21, 2019
Saturday’s planned Brexit vote in the House of Commons didn’t happen. Instead, MPs requested that Prime Minister Johnson get another deadline extension from the EU. Boris Johnson sent an unsigned letter to the EU that only complained that an extension would be toxic and now seeks to force a Brexit vote today. No response yet […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: October 19-26
October 18, 2019
Central Banks: Monetary policy reviews in Euroland, China, Ukraine, Russia, Turkey, Sweden, Norway, Indonesia, Hungary and Chile. The ECB Governing Council meeting will be the last chaired by Draghi. Kent of the Reserve Bank of Australia and Handane of the Bank of England also speak publicly. The Bank of Canada publishes its business outlook survey. […] More
New Overnight Developments Abroad - Daily Update
Brexit Headed for Photo Finnish and a Lot of Chinese Data Released
October 18, 2019
A debate and vote on British Prime Minister Johnson’s deal with the EU is scheduled Saturday. He needs 318 yes votes for approval, and the outcome figures to be very close to that threshold. Johnson needs only a simple majority win. In a more perfectly designed political system of self-governance, a decision with such profound […] More
New Overnight Developments Abroad - Daily Update
Brexit Deal Reached, Congressman Cummings Dead, and Beige Book Reflects Slowdown
October 17, 2019
Several big stories hit the wires this morning. First, Congressman Elijah Cummings of Maryland, Chair of the House Oversight and Reform Committee and a leading figure in the investigation of President Trump, has died at age 68. He’d had several health problems, but exact details of cause of death were not provided. Second, British Prime […] More
Central Bank Watch
Bank of Korea Eases Monetary Policy Again
October 16, 2019
The Bank of Korea enacted its second 25-basis point repo rate cut since July and released a statement that suggests more ease may be done. But with two of seven policymakers dissenting in favor of not cutting the main interest rate today, the timing and certainty of a third move has been thrown into some […] More
New Overnight Developments Abroad - Daily Update
Greater Pessimism Surrounding Brexit, U.S.-China, and Global Growth
October 16, 2019
Investor confidence regarding the main geopolitical risks of Brexit and U.S.-Sino trade continue to flip-flop seemingly on a daily basis, often without any concrete new actions. Still no deal on Brexit has been announced with the main sticking point being the handling of Northern Ireland’s border with Ireland, and time is getting exceedingly short. Trade […] More
Foreign Exchange Insights and Next Week
Still Waiting for a Broad and Sustained Dollar Decline
October 15, 2019
Many forecasters had expected a downward break in the dollar this year. It didn’t happen, and only a fifth of the year remains. Compared to a year ago, the dollar shows a double-digit decline against the euro and rises of about 3% relative to sterling and the Chinese yuan versus a dip of less than […] More
Central Bank Watch
Monetary Policy Eased in Singapore
October 15, 2019
Singapore’s monetary policy is reviewed by it Monetary Authority (MAS) semi-annually in April and October, and policy tool used is an allowed band for the trade-weighted Singapore dollar, rather than a domestic interest rate. Three-month Sibor is currently at 1.9%. The S-dollar’s policy band has three elements: a mid-point, the band’s width, and a prescribed […] More
New Overnight Developments Abroad - Daily Update
Confusion on Many Fronts
October 15, 2019
Details of the Phase I trade deal that U.S. President Trump proclaimed last week remain vague, and it’s unclear even if the Chinese and U.S. negotiators reached any kind of common ground to commit to writing. The pendulum of investor expectations about where trade talks are heading continues to swing wildly by the day and […] More
New Overnight Developments Abroad - Daily Update
Sterling and European Share Prices Falter
October 14, 2019
In this important week for the fate of Brexit, sterling dropped 0.9% against the dollar overnight. On a day with holiday closures in the United States (Columbus Day), Canada (Thanksgiving), and Japan (Health Sports Day), the dollar otherwise advanced 0.7% against the kiwi, 0.2% versus the euro, and 0.5% relative to the Australian dollar but […] More
