Central Bank Watch
FOMC Preview
June 16, 2021
The issue at stake at this week’s monetary policy review meeting is whether officials are going to imply that the onset for the tapering of policy stimulus may be less distant than they have implied previously. Inflation in the United States has accelerated more sharply than officials were anticipating. Perceptions of inflation and expected inflation […] More
New Overnight Developments Abroad - Daily Update
Stressful Day that Includes the Biden-Putin Talks in Geneva, an FOMC Policy Meeting in Washington, and an Assortment of Meaningful Data Releases
June 16, 2021
The Biden-Putin summit is underway and expected to last around five hours. The U.S. political leaders will then hold separate individual press conferences rather than a joint event. The Federal Open Market Committee is not expected to change monetary policy settings but could for the first time indicate that it’s not too early to begin […] More
New Overnight Developments Abroad - Daily Update
Firmer Dollar as Investors Await U.S. Data Today and FOMC Tomorrow
June 15, 2021
The U.S. dollar‘s largest overnight gains are against the Turkish lira (1.1%), Canadian dollar and sterling (each +0.4). After his meeting with Biden, Turkish President Erdogan didn’t back off his provocative military plans, and that weighed on the lira. In Pacific Rim stock market action, markets in New Zealand, Japan, Australia Taiwan, and Singapore closed […] More
New Overnight Developments Abroad - Daily Update
With an Eye Toward Wednesday’s FOMC Meeting, Markets in Pause Mode
June 14, 2021
The dollar is 0.1% softer on a weighted basis, and most key dollar currency pairs have barely moved from Friday closing levels. Not only are investors marking time until Wednesday’s FOMC announcement, but several markets were closed today (China, Taiwan, and Hong Kong for the Dragon Boat Festival and Australia for the Queen’s Birthday holiday). […] More
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Next Week’s Menu: June 12 – 18, 2021
June 11, 2021
Central Banks: Monetary policies will be reviewed in the United States, Japan, Indonesia, Turkey, Brazil, Switzerland, Norway, Ukraine and Taiwan. Fed Chairman Powell, BOJ Governor Kuroda, Reserve Bank of Australia Governor Lowe, and Swiss National Bank President Jordan will be speaking publicly. RBA minutes to be published. Events and Holidays: U.S. President Biden’s trip to […] More
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Half Percentage Point Central Bank Interest Rate Hike in Russia
June 11, 2021
A third successive hike of the Central Bank of Russia has been engineered, and its 50-basis point increase to 5.5% exceeded forecasts of a 25-basis point move. The rate had been raised by 50 basis points in April and 75 bps in May. A statement from the Board of Directors after the scheduled policy […] More
New Overnight Developments Abroad - Daily Update
G7 Summit and a Greater-than-Expected Interest Rate Hike in Russia
June 11, 2021
Leaders of the Group of Seven (U.S., Japan, Germany, France, Italy, U.K., and Canada) are holding their annual summit in Cornwall, England. A third successive hike of the Central Bank of Russia has been engineered, and its 50-basis point increase to 5.5% exceeded forecasts of a 25-basis point move. The rate had been raised by […] More
New Overnight Developments Abroad - Daily Update
G7 Meetings, ECB Press Conference, and Released CPI and Industrial Production Share Spotlight
June 10, 2021
Climate change and challenges from China and Russia headline the agenda of this year’s Group of Seven summit in Cornwall, U.K.. This is U.S. President Biden’s first summit. The Governing Council of the European Central Bank, as expected, did not modify its accommodative monetary stance nor forward guidance regarding future policy. Key interest rates (a […] More
New Overnight Developments Abroad - Daily Update
Signs Emerging that Inflationary Momentum May Be Flattening
June 9, 2021
Consumer prices in China recorded their third month-on-month drop in a row, slipping 0.2% in May after declines of 0.3% in April and 0.2% in March. That didn’t prevent another acceleration of on-year CPI inflation, which advanced to an 8-month high of 1.3%. Moreover, price pressure at the producer level rose sharply again from 6.8% […] More
New Overnight Developments Abroad - Daily Update
Narrowly Mixed Dollar… Tuesday Data Menu Features GDP
June 8, 2021
The dollar slipped overnight by 0.4% against the Mexican peso, 0.3% relative to the Turkish lira and 0.2% versus the Swiss franc but rose but 0.2% versus the kiwi and sterling and 0.1% relative to the euro, yen, and Australian dollar. There’s been no net change in the Chinese yuan or Canadian dollar. Ten-year sovereign […] More
