Archive for August 2021

Deeper Analysis

August 2021 in Figures

August 31, 2021

Ten-year sovereign debt yields and stock market indices advanced during August, whereas the price of oil relinquished some of its gains over prior months. U.S. equities went up only moderately but outperformed share prices in Japan, Germany, Canada and Great Britain. The dollar appreciated against most of the currencies in this feature, exceptions being the […] More

New Overnight Developments Abroad - Daily Update

Heavy Day for Released Data

August 31, 2021

Typical of the final business day of the month, August 31, 2021 has experienced a bunch of reported data around the world. In financial markets, the dollar has slipped back 0.2% against its DXY weighted index but is up 0.5% compared to a month ago. Overnight moves in the dollar include drops of 0.2% versus […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: August 28 – September 3, 2001

August 27, 2021

Central Banks: The annual Jackson Hole central bank symposium ends on August 28. Chilean monetary policy will be reviewed at the Central Bank of Chile. Atlanta Fed President Bostic speaks publicly. Holiday: U.K. late summer bank holiday on Monday. Purchasing Manager Surveys: Results of over 40 August surveys covering manufacturing and services to be reported. […] More

New Overnight Developments Abroad - Daily Update

Powell Speech in 15 Minutes on a Data-Heavy Day

August 27, 2021

Fed Chairman Powell addresses the Jackson Hole Central Bank Symposium at 10 EDT. Markets have been comparatively flat, awaiting what Powell has to say regarding the tapering of Fed bond purchases and what officials anticipate for U.S. growth and inflation. The trade-weighted dollar has edged 0.1% higher. U.S. personal income in July, which had been […] More

New Overnight Developments Abroad - Daily Update

Marking Time as Drama at Jackson Hole and Kabul Unfold

August 26, 2021

The St. Louis and Kansas City Federal Reserve District presidents, who represent predominately Republican regions of the United States, publicly expressed their personal desires to see quantitative tapering begin this autumn, and Bullard of St. Louis added his hope that an interest rate hike be done before the end of 2022. The annual central banking […] More

Central Bank Watch

Iceland’s Second Central Bank Rate Hike of 2021

August 25, 2021

The Central Bank of Iceland’s policy interest rate was increased another 25 basis points to 1.25%. An initial hike of similar size had been engineered earlier this year in May. During the opening five months of 2020, the rate had been reduced by a total of 225 basis points to 0.75%. Iceland is the only […] More

New Overnight Developments Abroad - Daily Update

Softer Business Confidence, A Rate Hike in Iceland, and Awaiting Clarification of Fed Policy Plans

August 25, 2021

The Jackson Hole annual central banker conference begins tomorrow at which investors hope to glean greater clarification of the Fed’s exit strategy. The Delta Variant’s wave of higher coronavirus infections has cast a shadow over how aggressively Federal Reserve officials will taper quantitative monetary stimulus. Global infections are closing in on the 215 million level. […] More

Central Bank Watch

A Third Central Bank Interest Rate Hike in Hungary

August 24, 2021

As was expected, the National Bank of Hungary’s base rate was lifted another 30 basis points at this month’s review of monetary policy. Such follows similar hikes made in June and July and brings the rate level to 0.90%, its highest level since mid-2015. In 2020, two cuts of 15 basis points each had been […] More

New Overnight Developments Abroad - Daily Update

Flat Dollar Ahead of Emergency G7 Leaders Meeting

August 24, 2021

Dollar rates against the euro, yen, Swiss franc and DXY weighted index are unchanged from Monday closing levels. The U.S. currency has not done as well against commodity-sensitive currencies, falling by 0.7% versus the kiwi, 0.5% against the Australian dollar, 0.2% vis-a-vis the loonie, and 0.1% versus the Chinese yuan and Mexican peso. One currency […] More

New Overnight Developments Abroad - Daily Update

Equities, Sovereign Debt Yields, and Commodity Prices Higher, while Dollar Softens at Start of New Week

August 23, 2021

Ahead of the Jackson Hole annual central banking symposium at the end of this week, investors have become more hopeful than last week. Whether bond buying starts to taper this year or in early 2022, it will be quite a while longer before the federal funds target is raised. Second-quarter earnings were good, Equities closed […] More

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