New Overnight Developments Abroad - Daily Update
Financial Market Sell-Off
September 20, 2021
Investors are worrying the Congress will this time fail to raise the debt ceiling, whose limit will be reached during October. Many earlier games of chicken over raising the debt ceiling have always been averted, but political divisiveness has never been so raw since the convention of debt ceilings were adopted. The consequence of not […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: September 18 – 24, 2021
September 17, 2021
Central Banks: Monetary policies will be reviewed in the United States, Japan, U.K., South Africa, taiwan, China, Switzerland, Indonesia, Sweden, Hungary, Norway, Turkey and the Philippines. Fed Chairman Powell, BOJ Governor Kuroda, RBA Assistant Governor Bullock, and Governor Bailey and MPC member Tenreyro of the Bank of England are some of the central bankers who […] More
New Overnight Developments Abroad - Daily Update
Markets Looking Ahead to Next Week’s Central Bank Policy Meetings
September 17, 2021
The Federal Reserve heads a long list of central banks reviewing monetary policy next week. Among the others on tap are central banks in Japan, Turkey, the U.K., Switzerland, Sweden, Indonesia, Brazil, China, South Africa, Taiwan, Norway and the Philippines. Investors hope to get more clarification on when Fed will begin tapering bond purchases and […] More
New Overnight Developments Abroad - Daily Update
Strengthening Dollar
September 16, 2021
Broadly-based overnight appreciations of the dollar include gains of 0.7% against the Swiss franc and Turkish lira, 0.5% versus the euro, kiwi, and sterling, 0.4% relative to the yen and Australian dollar, and 0.2% vis-a-vis the Canadian dollar and Mexican peso. The DXY weighted dollar index advanced 0.4% and is just 1.9% below its 52-week […] More
New Overnight Developments Abroad - Daily Update
Meaningful Data Released Today in China, U.S., U.K., Japan and Euroland
September 15, 2021
The dollar fell overnight by 0.2% against the DXY weighted index and sterling, 0.4% versus the Japanese yen, and 0.1% relative to the euro and Swiss franc. Ten-year sovereign debt yields rose two basis points each in the United States, Germany and Great Britain but slipped a basis point in Japan. Equity markets mostly dropped […] More
New Overnight Developments Abroad - Daily Update
Good, Bad and Ugly
September 14, 2021
Start with the ugly. New Covid cases in the United States spiked to more than 172.4k yesterday, and deaths topped 1800. Even as almost half the whole population remains unvaccinated, there is confusion over who is eligible for boosters and when children under age 12 will be allowed to get vaccinated. As Covid goes, so […] More
New Overnight Developments Abroad - Daily Update
Equities and Dollar Rise after Difficult Week
September 13, 2021
Equity markets in Europe have strengthened slightly more than 1.0% in Italy and Spain and by 0.7-0.9% in Germany, France and Great Britain. U.S. stock futures are up around 0.6%, but markets earlier in the Pacific Rim had given no warning as what was to come with Hong Kong’s Hang Seng index faltering 1.5% and […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: September 11 – 17, 2021
September 10, 2021
Event and Holiday: EU Finance Ministers meeting on Monday and Mexican Independence Day on Thursday. Scheduled U.S. Data Releases: Consumer prices, retail sales, industrial production, capacity usage, small business sentiment, monthly federal deficit, real wage earnings, import prices, Philly Fed and Empire State manufacturing surveys, Treasury-compiled capital flows and U. Michigan/Reuters consumer sentiment index. Weekly […] More
Central Bank Watch
Central Bank of Russia
September 10, 2021
The Bank of Russia‘s key interest rate was lifted for the fifth time since March. In all, the rate has climbed 250 basis points to 6.75%, but today’s move of 25 basis points matched the previously smallest change, which happened to be the initial increment. With GDP back to its pre-pandemic level and “given high […] More
Central Bank Watch
Central Reserve Bank of Peru
September 10, 2021
The Central Reserve Bank of Peru’s Board of Directors hiked its policy interest rate twice as much as analysts were anticipating to 1.0% from 0.5%. This was the second straight increase after a hike of 25 bps in August, but unlike then, today’s statement admonishes against assuming more moves following immediately: “The current decision does […] More
