Foreign Exchange Insights and Next Week
Next Week’s Menu: March 20 – 26, 2021
March 19, 2021
Central Banks: Interest rate policy will be reviewed in Switzerland, Iceland, China, Thailand, South Africa, Mexico, Colombia and the Philippines. NY Federal Reserve District President Williams is one of the Fed officials speaking in public, and Bank of England Governor Bailey gives a speech, too. Minutes from a previous Bank of Japan Board meeting will […] More
Central Bank Watch
Bank of Japan Modifies Policy but Characterizes such as “Furthr Effective and Sustainable Monetary Easing”
March 19, 2021
Long before the pandemic, the Bank of Japan had significantly modified the framework of its highly accommodative monetary easing in September 2016 and renamed the program Quantitative and Qualitative Easing with Yield Curve Control. Policy focus was shifted away from money growth to a more targeted effort to ensure a positive output gap, flatten the […] More
Central Bank Watch
Bank of Russia Tightens Unexpectedly
March 19, 2021
The Central Bank of Russia became the third monetary authority this week to raise its key interest rate in response to accelerating and above-target inflation, but unlike the tighenings in Brazil and Turkey which were merely larger than anticipated, Russia’s hike to 4.5% from 4.25% had not been expected. A statement from the Board of […] More
New Overnight Developments Abroad - Daily Update
Tough Week for Central Bank Credibility
March 19, 2021
At Wednesday’s press conference, Fed Chairman Powell tried to assuage investor concerns about inflation and the possibility of an earlier Fed tightening than indicated in the central bank’s forward guidance. Markets didn’t quite believe the dovish tone and drove the 10-year Treasury yield from 1.63% then to a high yesterday of 1.76%. Tech stocks in […] More
