Foreign Exchange Insights and Next Week
Coming Week’s Menu: April 25 – May 1, 2020
April 25, 2020
Central Banks: Monetary policies will be reviewed in the United States, Japan, Euroland, Sweden and Hungary. Fed Chairman Powell, European Central Bank President Lagarde, and Bank of Japan Governor Kuroda will hold press conferences after their respective meeings, and the Bank of Japan will publish a new Outlook for Economic Activity and Prices. A Holiday-Laden […] More
Central Bank Watch
50-Basis Point Central Bank Rate Cut in Russia
April 24, 2020
The Central Bank of Russia engineered its 7th policy interest rate cut since last June. The total decline over this period amounts to 225 basis points. Five of those earlier reductions had been by 25 basis points, and officials at the March monthly policy review had not cut rates further because of concern over ruble […] More
New Overnight Developments Abroad - Daily Update
More Evidence of Deep and Global Economic Downturn
April 24, 2020
Dollar movements on the final day of the week have been comparatively modest and somewhat mixed against other major currencies. The price of West Texas Intermediate crude oil extended its rebound but is currently still down 7.6% since last Friday’s close. Gold is little changed. Further substantial declines of 9-10 basis points have occurred today […] More
Central Bank Watch
Rate Cut to 8% from 10% at National Bank of Ukraine
April 23, 2020
The National Bank of Ukraine slashed its policy interest rate by four times the expected amount to 8.0% from 10%, bringing the total reduction from the three cuts this year to 450 basis points. The rate, which had crested at 18.0% from September 2018 to April 2019, is now at its lowest since March 2014. […] More
New Overnight Developments Abroad - Daily Update
Bombardment of Horrific Data Reported Today Around the World
April 23, 2020
There were 4.427 million new U.S. jobless insurance claims last week. The 5.787 million average of new claims in the past four weeks is up from an average of 2.898 million in the prior four-week period and just 210,750 per week during the four weeks through February 22. Continuing jobless insurance claims of 15.976 million […] More
Uncategorized
Central Bank of Turkey Reduces 1-Week Repo rate to 8.75% from 9.75%
April 22, 2020
The Central Bank of Turkey’s one-week repo rate was cut twice as much as anticipated at today’s scheduled review of monetary policy. From 12% at the start of 2020, the rate has been lowered in each month and now becomes 8.75% after today’s full percentage point cut. A released statement observes that the global and […] More
Uncategorized
Bank of Mexico Cuts Policy Rate for Third Time since February
April 22, 2020
The Bank of Mexico Governing Board held an unscheduled meeting, cutting its policy rate for the third time this year. Along with reductions of 25 basis points in February and 50 bps in March, today’s 50-basis point decline reduces the rate to 6.0%. Policymakers also put together $31 billion of additional support “to foster an […] More
New Overnight Developments Abroad - Daily Update
More Macroeconomic Relief around the World
April 22, 2020
The U.S. Congress approved a fourth fiscal package that’s just a tad short of $500 billion. South Africa unveiled $26 billion of fiscal support, which is equal to about a tenth of GDP. The Bank of Mexico Governing Board held an unscheduled meeting, cutting its policy rate for the third time this year. Along with […] More
New Overnight Developments Abroad - Daily Update
Several Big Developments
April 21, 2020
Although well above Monday’s lows, the price of WTI oil (-$4.00 per barrel) remains negative. This development continues to ripple well beyond other commodity markets, including the exertion of a drag commodity-sensitive currencies. The dollar overnight advanced 2.5% against the Russian ruble, 1.3% relative to the New Zealand dollar and Mexican peso, 1.5% versus the […] More
New Overnight Developments Abroad - Daily Update
Disturbing News on Market, Economic, Medical and Social Fronts
April 20, 2020
The price of West Texas Intermediate crude oil collapsed under the weight of exhausted storage capacity and plunging demand. At its overnight low of $11.04 per barrel, the price was down 39% on the day and by more than 80% from its 52-week high. It’s also the lowest since the first quarter of 1999 during […] More
