Archive for December 2020

New Overnight Developments Abroad - Daily Update

Continuing Divergent Trends in Dollar and Share Prices

December 31, 2020

On this final day of 2020 with many markets already shut, the dollar is trading at the year’s lows, and many stock markets are at record or multi-year highs. Closures include much of Continental Europe, Japan, Australia, New Zealand, South Korea, and Hong Kong. The trade-weighted dollar set a fresh 2020 low of 89.51, 13% […] More

New Overnight Developments Abroad - Daily Update

Dollar Ending 2020 at Year’s Weakest Point

December 30, 2020

The trade-weighted DXY dollar index hit a new 32-month low today of 89.68, some 13% below the year’s high last March. Overnight losses amounted to 0.8% relative to the Australian dollar and sterling, 0.7% versus the New Zealand dollar, 0.5% against the yen, 0.4% vis-a-vis the Mexican peso, 0.3% against the Canadian dollar, 0.2% versus […] More

New Overnight Developments Abroad - Daily Update

Softer Dollar and Rising Equities as Yearend Approaches

December 29, 2020

The dollar fell broadly but only moderately overnight. It lost 0.7% against the Mexican peso, 0.5% relative to the New Zealand dollar, 0.4% versus the euro and Australian currency, 0.3% against the Swiss franc, Canadian dollar and sterling, 0.2% relative to the yen and 0.1% against the yuan. The euro at $1.2259 is just 14 […] More

New Overnight Developments Abroad - Daily Update

Stock Markets and Bitcoin Rise in First Post-Xmas Trading; Dollar Weak but Steady

December 28, 2020

After threatening not to sign the $900 billion U.S. pandemic relief package that extends extra jobless benefits and continues the half on shelter evictions, President Trump did sign the bill over the weekend. A possible federal government shutdown has been averted. Markets remain closed today (Boxing Day) in the U.K., Australia, New Zealand and Canada. […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: December 26,2020 – January 01, 2021

December 25, 2020

Central Banks: No meaningful interest rate policy reviews are scheduled. Bank of Canada Governor Macklem speaks publicly, and the Bank of Japan’s publishes a summary of its most recent Board meeting. Holidays and Special Events: Boxing Day is observed Monday in Australia, Canada, New Zealand and Great Britain. Several markets will be closed Thursday either […] More

New Overnight Developments Abroad - Daily Update

Christmas 2020

December 25, 2020

Among the very few markets open today, share prices rose 1.0% in China, 0.8% in Thailand, 0.4% in Taiwan and Turkey, but closed unchanged in Japan. The 10-year Japanese JGB yield edged a basis point higher, and WTI oil firmed 0.2%. The dollar is unchanged against the euro and yen, down 0.2% versus the peso […] More

Central Bank Watch

Central Bank of Turkey’s Repo Rate Lifted Another 200 Basis Points

December 24, 2020

2020 was a very active year for Turkish monetary policy. Five repo rate reductions in January-May totaled 375 basis points but were followed by sharp hikes of 200 basis points in both September and today, flanked around a huge 475-basis point increase in November. The rate benchmark is ending the year at 17% compared to […] More

New Overnight Developments Abroad - Daily Update

Some Important Developments this Christmas Eve

December 24, 2020

Many markets were either shut all day or closed early. Nevertheless, investors are digesting some significant developments: The Central Bank of Turkey hiked its one-week repo rate by a greater-than-expected two percentage points to 17%. The rate was 12% at the start of 2020 and 8.25% in June-August. EU/British trade negotiators reached a tentative accord, […] More

New Overnight Developments Abroad - Daily Update

Dollar Firms…. Trump Wants Big Changes in Pandemic Relief Bill

December 23, 2020

The dollar rose overnight by 0.5% against the Swiss franc, 0.4% versus the euro, Aussie and New Zealand currencies and Mexican peso, and 0.2% relative to the yen, loonie, and sterling. Stocks also rebounded, with Asian gains of 1.0% in India and South Korea, 0.9% in Hong Kong, 0.8% in China, 0.3% in Japan, and […] More

New Overnight Developments Abroad - Daily Update

After U.S. Pandemic Relief Package, There’s Been Little change in Dollar, U.S. Stock futures, or 10-Year Treasury Yield

December 22, 2020

The dollar shows no net overnight movement against the yen, Swiss franc or loonie. The greenback gained 0.4% against the kiwi, 0.3% versus the Aussie dollar and 0.2% relative to sterling but slipped 0.1% vis-a-vis the euro and Chinese yuan. Ten-year U.S. Treasury, German bund and Japanese JGB yields remain unchanged. Their British counterpart rose […] More