Foreign Exchange Insights and Next Week
Next Week’s Menu: August 22-28, 2020
August 21, 2020
Central Bank: Monetary policies will be reviewed in South Korea, Iceland, Hungary and Poland, minutes will be published from the mid-August Bank of Mexico Governing Board meeting. Special Events: The U.S. Republican Party National Convention runs Monday through Thursday. The annual Jackson Hole central banking symposium is scheduled for Thursday-Friday. Both events will be done […] More
New Overnight Developments Abroad - Daily Update
Dollar Ending Down Week on an Up Note
August 21, 2020
Former VP Joseph Biden’s presidential nomination acceptance speech capping the Democratic Party National Convention was well-received, inspirational and with no major gaffes. The Republican Party National Convention next week runs from Monday through Thursday. Preliminary purchasing manager August surveys reveal a loss of growth momentum in Euroland, stalled progress in Japan, a return to sub-50 […] More
New Overnight Developments Abroad - Daily Update
Sharp Equity Declines but Mixed Dollar
August 20, 2020
The U.S. equity market correction triggered by downbeat FOMC minutes released yesterday afternoon set the tone for overnight losses in European and Asian markets where bourses tumbled 3.7% in South Korea and 3.3% in Taiwan and by at least 1.0% in China, Hong Kong, Japan, Singapore, India, Germany, France, Italy, U.K., and Spain. Indonesia’s market did […] More
Central Bank Watch
Central Bank Rate Reductions in Namibia and Zambia
August 19, 2020
The Bank of Namibia’s repo rate was reduced by 25 basis points to a record low of 3.75%. This was the fifth cut since February, bringing the total drop since then to 275 basis points. The latest change matches the size of last month’s reduction at the South African Reserve Bank and will help maintain […] More
New Overnight Developments Abroad - Daily Update
Dollar’s Value Erodes Gradually Further
August 19, 2020
Overnight the dollar lost another 0.5% against sterling and the kiwi, 0.3% relative to the Australian dollar, 0.2% relative to the peso and yuan, and 0.1% vis-a-vis the yen and loonie. But EUR/USD held steady, and the Swiss franc lost 0.3%. Ten-year sovereign debt yields have settled back three basis points in the U.K., two […] More
New Overnight Developments Abroad - Daily Update
Dollar Slips to 27-Month Low, While Gold and Stocks Strengthen
August 18, 2020
The dollar dropped overnight by 0.5% against the peso and sterling, 0.4% relative to the yen, 0.3% vis-a-vis the loonie, 0.2% versus the Australian dollar and 0.1% against the Swiss franc and yuan. The U.S. currency in trade-weighted terms touched more than a 2-year low. Recent selling pressure on the dollar has been driven by […] More
New Overnight Developments Abroad - Daily Update
Modestly Softer Dollar
August 17, 2020
The dollar is 0.2% weaker against the yen, Swiss franc and Australian dollar and has also edged 0.1% lower versus the euro, yuan, and sterling. The price of gold rebounded 0.6%, while that of oil changed little as investors await this week’s OPEC meeting. Markets are shut in India for Independence Day and South Korea […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: August 15-22, 2020
August 14, 2020
Central Banks: Monetary policy reviews in the Philippines, China, Indonesia, Sri Lanka, Norway and Turkey. Minutes of recent reviews from the Reserve Bank of Australia, Federal Reserve, and European Central Bank will be published. Events and Holidays: The U.S. Democratic Party national convention will run from Monday to Thursday mostly on a virtual basis. Euroland […] More
New Overnight Developments Abroad - Daily Update
Much New Data for Investors to Digest
August 14, 2020
Today’s been one of those Friday’s with a significant body of economic data releases both from both a quantitative and qualitative standpoint. Prior to the U.S. contingent of releases, the dollar overnight had dropped 0.4% against sterling and 0.3% relative to sterling but risen by 0.2% against the Canadian and Australian dollars and 0.1% vis-a-vis […] More
Central Bank Watch
Another Mexican Central Bank Rate Cut
August 13, 2020
Over the past six months, policymakers at the Bank of Mexico have engineered six interest rate cuts totaling 275 basis points. The last five of these moves including today’s announcement were cuts of 50 basis points, and the overnight interbank interest rate now becomes 4.50%, which is a 3-1/2 year low. This latest easing, according […] More
