Deeper Analysis
November 2021 in Figures
November 30, 2021
The Omicron revelation last week dwarfed all other developments that had occurred earlier in November. Equity prices and ten-year sovereign debt yields fell sharply in response. The dollar experienced strong gains during November. The price of West Texas Intermediate oil, whose prior rise has been a leading factor in the global intensification of inflation this […] More
New Overnight Developments Abroad - Daily Update
Markets Jolted by Omicron Fears
November 30, 2021
Each month, no two-day sequence produces a heavier data release flow than the last business day on one month and first business day of the next. Navigating that period this time was magnified by worrisome developments in the race to understand the new Omicron variant of the Covid-19 pandemic. The CEO of Moderna, whose vaccine […] More
New Overnight Developments Abroad - Daily Update
Immediate Market Reaction to Omicron Trimmed Back but Only Partially
November 29, 2021
It will take a week or two before a clearer picture emerges of the Omicron Variant and investors have a better understanding of key questions such as the protection existing vaccines provide to the new mutation. Markets had reacted very adversely on Friday to first learning about Omicron. Today has seen a partial reversal of […] More
Central Bank Watch
A Second Hike of the Reserve Bank of New Zealand’s Official Cash Rate
November 24, 2021
An initial OCR increase of 25 basis points had been done in October, and such has been followed by a second hike of same size to 0.75%. The rate had been previouslyat a record low of 0.25% from mid-March 2020. A released statement sees continuing reductions in monetary stimulus. Capacity pressures have continued to tighten. […] More
New Overnight Developments Abroad - Daily Update
Powell’s Renomination Reinforces Belief that Fed Interest Rate Liftoff Will Happen Sooner Rather than Later
November 23, 2021
Of the two finalists for chairperson of the Federal Reserve, Powell was considered likelier than Brainard to secure the earlier initial hike of the federal funds rate. Both candidates remain on the Federal Reserve Board of Governors, Brainard as Vice Chairman, and Biden still has three vacancies to fill and thus additionally shape future monetary […] More
Foreign Exchange Insights and Next Week
Dollar Volatility and Inflation
November 22, 2021
The acceleration of inflation in 2021 has been broadly experienced across the world and remarkable in its suddenness. Year-on-year inflation rates last December were both low and more tightly bunched than now. In the cases of Japan, Switzerland and the euro area, inflation was lower than zero back then at -1.2%, -0.8% and -0.3%, respectively. […] More
New Overnight Developments Abroad - Daily Update
European Consumer Confidence Stumbles on Covid Resurgence
November 22, 2021
Market movement has been limited this Monday. The most notable development has been a net 0.3% drop in the net price of oil. WTI crude is down 0.3% but about a dollar above the intra-day seven-week low of $74.68 per barrel. The weighted DXY dollar index has edged up 0.1% but is currently close to […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: November 20 – 26, 2021
November 19, 2021
Central Banks: Monetary policies will be reviewed in Sweden, New Zealand, South Africa, China, Israel, and Sri Lanka. Minutes from the last policy meetings of the FOMC and European Central Bank are to be published, as will Sweden’s Monetary Policy Report. Two central bankers speaking publicly will be Haskel of the Bank of England and […] More
Deeper Analysis
Japan Bucking the 2021 Trend to Higher Inflation Around the World
November 19, 2021
The sharper-than-forecast rise of inflation almost everywhere and recent further intensification of price pressures in many places has been a big mystery and source of great dispute over the trend’s future evolution. A centrally dynamic role of oil and food prices, as was the case in the 1970s, is magnifying inflationary fears, but there are […] More
New Overnight Developments Abroad - Daily Update
Dollar Ending Pre-Thanksgiving Week on a Strong Note, but Equities and Bond Yields Wobbly
November 19, 2021
The weighted DXY dollar index advanced 0.4% overnight, climbing 0.7% against the euro, 1.2% versus the Turkish lira, 0.5% relative to the Australian dollar, kiwi and sterling, 0.4% vis-a-vis the Canadian dollar but just 0.1% against the Swiss franc, which traditionally thrives when global inflation becomes a concern. News today on the Covid-19 front has […] More
