Deeper Analysis
March and First Quarter 2020 in Figures
March 31, 2020
Similar to February, the dollar’s net movements against the euro, yen, and Swiss franc were an oasis of stability amid the continuing financial market drama elsewhere. For the whole first quarter, the dollar was particularly well-bid against sterling and commodity-sensitive currencies like the Australian, New Zealand, and Canadian dollars. For central bank watchers, March was […] More
New Overnight Developments Abroad - Daily Update
Another Downturn in Stock Prices
March 31, 2020
Asian equities had a decent session with gains of 3.6% in India, 2.7% in Singapore, 2.2% in South Korea and 1.9% in Hong Kong, but Japan’s Nikkei closed down 0.9%. Conditions worsened in Europe, with equity market drops so far of 1.4% in France, 0.9% in Germany and 0.4% in France, and U.S. futures also […] More
Central Bank Watch
Monetary Policy Eased in Singapore
March 30, 2020
The semi-annual monetary policy review by officials at the Monetary Authority of Singapore cut the slope of the Singapore dollar’s allowed trading range to zero percent. This matches the slope allowed from April 2016 through April 2018. The center of the trading band will be is present level, and the width of the band remains […] More
New Overnight Developments Abroad - Daily Update
New Week Brings More Covid-19 Deaths and More Risk Aversion
March 30, 2020
There have now been almost three quarters of a million identified Covid-19 cases around the world, resulting in 35k deaths. About a fifth of the cases have occurred in the United States. In the past 24 hours, Spain reported 537 more deaths to the illness. A ban on U.S. social gatherings has been extended to […] More
Central Bank Watch
Third 50-Basis Point Canadian Central Bank Rate Cut Since March 4
March 27, 2020
At a regularly scheduled Governing Council meeting on March 4, the Bank of Canada’s overnight policy rate was cut to 1.25% from 1.75%, a level that had prevailed since a 25-basis point hike in October 2018. A statement released after that meeting observed that Canadian GDP was close to potential and inflation near target but […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: March 28 – April 3, 2020
March 27, 2020
Central Banks: Monetary policy reviews are scheduled in Singapore and Chile. Policy meetings scheduled originally for April 3rd in India and Romania were held in advance of that date. The RBI today announced a 75-basis point cut and several other easing measures, and the National Bank of Romania’s 50-bp cut on March 20 was accompanied […] More
Central Bank Watch
Reserve Bank of India’s Repo Rate Cut by 75 Basis Points
March 27, 2020
The Reserve Bank of India is the latest central bank to call an emergency meeting and approve a slew of stimulus measures. These include a 75-basis point cut of the repo rate to 4.40%, which brings the cummulative drop to 135 basis points since last August and to 210 basis points over the past 13 […] More
New Overnight Developments Abroad - Daily Update
Fresh Coronavirus Concerns Hit Share Prices
March 27, 2020
The global tally of identified Covid-19 infections is at 549,430 people and has produced 24,872 deaths thus far. Spain saw its death count jump by 493 in the past day to 4,858 overall. In the U.K., both Prince Charles and Prime Minister John have tested positive. The United States now tops the leader board in […] More
Central Bank Watch
Czech National Bank Reduces Two-Week Repo Rate to 1.0%
March 26, 2020
Ten days after an inter-meeting 50-basis point rate reduction on March 16, Czech National Bank officials at today’s scheduled meeting authorized a further 75-basis point rate cut, declaring in a released statement that the Czech economy likely faces a strong domestic recession for most of the rest of 2020 and that such will likely exert […] More
Central Bank Watch
Czech National Bank Officials Ready to Ease More If Necessary
March 26, 2020
At an intermeeting meeting of the CNB Governing Board on March 16 reduced the two-week repo rate to 1.75% from 2.25%. Minutes of that meeting include forward guidance that further monetary relief may be undertaken. The Board agreed on the need to lower the CNB’s key interest rates and thereby ease the monetary conditions beyond […] More
