Deeper Analysis
April 2021 in Figures
April 30, 2021
The month of April experienced significant further appreciation of U.S. equities and the price of oil. The Canadian and British stock markets kept pace with America’s to a certain extent, but the Swiss and Japanese lost ground. The dollar fell against a broad spectrum of other currencies, and the 10-year U.S. Treasury yield premium relative […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: May 1 – 7, 2021
April 30, 2021
Central Banks: Monetary policy reviews are scheduled in Australia, Brazil, the U.K., Turkey, Norway, Malaysia, Poland, Thailand and the Czech Republic. The quarterly Bank of England Monetary Policy Report and Reserve Bank of Australia Monetary Policy Statement will be published, and so will minutes from the Bank of Japan policy meeting. Bank of England Governor […] More
New Overnight Developments Abroad - Daily Update
Dollar Up and Equities Down After Weak European GDP Data
April 30, 2021
The dollar advanced overnight by 0.8% against the Turkish lira, 0.3% relative to the Mexican peso and kiwi, 0.2% versus the euro, Aussie dollar and weighted dollar index, and 0.1% vis-a-vis sterling. The dollar also slipped 0.2% against the Canadian dollar and 0.1% versus the Japanese yen. Relationships against the Chinese yuan and Swiss franc […] More
New Overnight Developments Abroad - Daily Update
Markets Emerge from FOMC Announcement and Biden Speech on Up Note
April 29, 2021
U.S. stock futures point to a higher open. Share prices closed up 0.8% in Hong Kong, 0.6% in Indonesia, and 0.5% in China. Equities are somewhat higher in many European centers but not Germany. Japan is observing Showa Day. Although still near a 2-month low, the weighted DXY dollar index is trading near the top […] More
Central Bank Watch
FOMC Statement and Powell Press Conference
April 28, 2021
Nothing remarkable emerged from the Federal Reserve today. Monetary policy settings were not changed. The fed funds interest rate target of 0-0.25% was kept, and and so were the amounts of Treasury securities and MBS that the central bank will buy each month. Forward guidance was likewise retained as it’s been. Officials need to see […] More
Central Bank Watch
FOMC Preview
April 28, 2021
In the six weeks since the last FOMC meeting, the dollar has fallen 1.3% against the euro and 0.3% versus the yen. The 10-year Treasury yield is now three basis points lower than then although it has been rising lately. The Dow Jones Industrials has risen 3.0%, while the price of West Texas Intermediate crude […] More
Central Bank Watch
Full Percentage Point Interest Rate Hike by Georgia’s Central Bank
April 28, 2021
The National Bank of Georgia, like central banks in Russia and Ukraine earlier, today announced its second interest rate increase of 2021. Georgia’s one-week refinancing rate was lifted by 100 basis points to 9.5%, exceeding the end-2019 level of 9.0%. The policy rate had been reduced three times last year between April and August and […] More
New Overnight Developments Abroad - Daily Update
A Double Feature for Investors Today of Big Events: Powell then Biden
April 28, 2021
The FOMC wraps up its two-day policy review today. The policy statement, due at 14:00 EDT, will concede a brightening growth picture with accelerating inflation but is unlikely to modify forward guidance that welcomes a period of inflation somewhat above target rather than aiming to quash such quickly. Fed Chairman Powell’s press conference afterward begins […] More
Central Bank Watch
Bank of Japan Makes No Change in Monetary Policy but Revised Projected Growth Higher
April 27, 2021
This month’s meeting of the Bank of Japan Policy Board coincides with an updated publication of the Outlook for Economic Activity and Growth. The settings of the “Quantitative and Qualitative Easing with Yield Curve Control” was introduced initially in September 2016. The targets are -0.1% for short-term interest rates, “around zero percent give-or-take 50 basis […] More
New Overnight Developments Abroad - Daily Update
Financial Markets Generally Quiet Ahead of FOMC Meeting and President Biden’s Speech on Wednesday
April 27, 2021
The weighted dollar is trading at its overnight low but down less than 0.1% on balance. The U.S. currency is unchanged against the euro and sterling, up 0.1% relative to the yen and 0.1% softer versus the Swiss franc. U.S. stock futures are little changed. Corporate earnings reports have been mostly solid. Share prices closed […] More
