New Overnight Developments Abroad - Daily Update
Virus Scare Grabs the Market’s Attention
January 21, 2020
Nothing changes the mood of investors like the sudden emergence of an unknown unknown. Just last week, markets were rejoicing about the signing of a Phase I trade deal between China and the United States, which engendered hopes of lessening trade tensions not just between the world’s two largest economies but elsewhere as well. Investors […] More
New Overnight Developments Abroad - Daily Update
Little Happening in Markets on this U.S. Holiday
January 20, 2020
U.S. markets will be closed today for Martin Luther King Jr’s birthday. In the absence of U.S. leadership, the dollar has been mostly steady, with no net change against the yen, loonie, or peso, overnight upticks of 0.2% against the renminbi, kiwi, Aussie dollar and sterling, a 0.1% relative to the euro and a 0.1% […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: January 18 – 24, 2020
January 17, 2020
Central Banks: Monetary policies to be reviewed in Indonesia, Japan, Malaysia, Canada, Norway, and at the European Central Bank. People’s Bank of China will decide its loan prime rate for the next month. Bank of Japan publishes minutes from its December meeting and a new quarterly Outlook for Economic Growth and Prices, and Bank of Canada […] More
New Overnight Developments Abroad - Daily Update
Better-than-Expected Batch of Chinese Data Lifts Renminbi
January 17, 2020
The dollar fell 0.3% against China’s renminbi but advanced 0.2% versus the euro, kiwi and Swiss franc and by 0.1% relative to the loonie. The dollar remained steady against the yen, sterling, and Australian dollar. The recent upturn in share prices was extended in the Pacific Basin and Europe, with gains of 0.6% in New […] More
Larry's Blog
Was Sign Stealing the Pivotal Factor in the Astros’ 2017 ALCS Victory?
January 16, 2020
In the 2017 American League Championship Series between the Astros and Yankees, the home team won all seven games. In light of the revelation that the Houston Astros that year used electronic devices to steal opposing pitcher signs and relay such helpful information to their batters just before the pitch, partisan claims have been made […] More
Central Bank Watch
South African Reserve Bank Repo Rate Sliced 25 BPS to 6.25%
January 16, 2020
Policymakers at the South African Reserve Bank voted unanimously to cut the central bank’s repo rate by a further 25 basis points to 6.25%. This follows an initial 25-bp cut last July that reversed a 25-bp hike in November 2018. In a released statement, bank officials announced downward revisions to the growth path, which overall […] More
Central Bank Watch
Interest Rate Cut in Turkey
January 16, 2020
The Central Bank of the Republic of Turkey’s one-week repo rate was cut by 75 basis points to 11.25%. Analysts had been projecting a likely 50-bp cut. Today’s moves follow consecutive cuts of 425 basis points last July, 325 bps at September’s meeting, 250 bps in October and 200 bps last month. Even though the […] More
New Overnight Developments Abroad - Daily Update
Financial Markets Comparatively Steady after Signing of Phase I U.S.-China Trade Deal
January 16, 2020
The dollar rose 0.1% overnight against the yen but slipped by 0.3% versus sterling and the Australian dollar, 0.2% relative to the Chinese Renminbi and Swiss franc, and 0.1% versus the euro and loonie. Share prices in the Pacific Rim advanced 0.7% in Australia, New Zealand and Singapore, 0.8% in South Korea, 0.1% in Japan, […] More
New Overnight Developments Abroad - Daily Update
Share Prices Slip
January 15, 2020
If all goes as planned, the Phase One trade deal between China and the United States will be signed today, but significant tariffs remain. The quarterly meeting of branch managers at the Bank of Japan downgraded economic conditions in three of the nine main regions but found none to be experiencing contracting growth and remained […] More
Deeper Analysis
Treasury Dept. Report on Macroeconomic and Foreign Exchange Policies of Major Trading Partners of the United States
January 14, 2020
China had been designated as a “currency manipulator” last August, but that label is being rescinded on the eve of the Phase One U.S.-Sino trade pact. In theory, retaliatory actions can be more speedily imposed by the President on so-called currency manipulators, but the switch in designation in reality will make little practical difference. In […] More
