Foreign Exchange Insights and Next Week
Next Week’s Menu: January 1 – 7, 2022
December 30, 2021
Central Banks: Central bank activity gets off to a slow start. There’s a policy review at the Bank of Israel and FOMC minutes from the last 2021 review of Fed policy will be published. Holidays and Events: While the bulk of market closures for the New Year’s Holiday are slated tomorrow (December 31), some markets […] More
New Overnight Developments Abroad - Daily Update
A Deadly and Stressful Year about to Close
December 30, 2021
With New Years Day falling on Saturday, most major markets will not be trading tomorrow. What trading there has been today has been light, and there will be few regrets to seen 2021 pass on to the ages. The weighted DXY dollar index has slipped less than 0.1% overnight but shows a significant advance of […] More
New Overnight Developments Abroad - Daily Update
U.S. Sets Records for Monthly Trade Deficit and Number of New Covid Cases
December 29, 2021
With 2021 winding down, the dollar settled back overnight by 0.3% overnight against sterling and peso and by 0.2% relative to the euro, Swissie, Australian dollar, kiwi, and weighted DXY index. However, 2021 has been a robust year for the dollar, which sports a 7% weighted on-year advance. Identified cases of Covid are busting out […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: December 25 – 31, 2021
December 24, 2021
Central Banks: No central bank policy reviews among major central banks are scheduled for the final week of 2021. A summary of the discussion at the last Bank of Japan Board meeting will be published. Holidays: Several countries such as the U.K., Canada, Australia, Italy and Switzerland will be observing Boxing Day early in the […] More
New Overnight Developments Abroad - Daily Update
All Quiet on Christmas Eve 2021
December 24, 2021
With Christmas falling on a Saturday, most countries are observing a holiday closure this Friday. The biggest news story continues to be the Omicron strain of Covid-19, which has lifted the 7-day U.S. average case total slightly past 186k and the single day case numbers on December 23rd to around 265,000 in the United States […] More
New Overnight Developments Abroad - Daily Update
Further Recovery in Risk Appetite Ahead of Holiday
December 23, 2021
Most major markets, but not Japan’s, will be closed partially or fully tomorrow for Christmas Eve. As a result, some data were released earlier than normal today. Covid developments today were constructive on the whole. Although new cases continue to crest on the Omicron wave, the latest variant doesn’t appear to be as lethal as […] More
New Overnight Developments Abroad - Daily Update
Revised U.S. and British GDP Figures, Record High PPI Reports, and a Big Czech Central Bank Rate Hike
December 22, 2021
Market activity so far this Wednesday has been less volatile than in recent days. The weighted DXY dollar index settled back 0.2% and was around overnight lows at the time of the U.S. stock market opening. The dollar has fallen 0.5% against the Australian dollar, Turkish lira and sterling but just 0.2% relative to the […] More
New Overnight Developments Abroad - Daily Update
Volatile Markets as Investors Scramble to Assess Omicron Variant
December 21, 2021
Ten-year sovereign debt yields rose nine basis points overnight in the U.K., eight bps in Spain and Italy, seven bps in France, six bps in Germany, five bps in the United States and a basis point in Japan. The steep drop in stock markets was partially trimmed overnight, but equities still appear vulnerable. U.S. stock […] More
New Overnight Developments Abroad - Daily Update
A Turn for the Worse on Several Fronts Sends Equities Sharply Lower Around the World
December 20, 2021
The highly infectious Omicron Variant of Covid 19 is threatening to overwhelm hospitals and forcing authorities in many places to reimpose tighter restrictions against social gathering. Pfizer’s Covid vaccine trial on kids aged 2-5 did not result in an immunity rise as had been expected, which creates a childcare crisis and will likely prevent many […] More
Central Bank Watch
A 50 Basis Point Colombian Central Bank Rate Hike with Three Dissenters Favoring a Larger Increase
December 17, 2021
Colombia’s monetary policy rate was raised today to 3.0% from 2.5%. This increase followed hikes of 25 basis points in September and 50 bps in October, and it was decided by a thin 4-3 vote where the disagreement pertained to how much to tighten rather than whether to lift the rate again or not. Three […] More
