Archive for November 2021

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

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