Archive for March 2022

Foreign Exchange Insights and Next Week

Next Week’s Menu: March 26 – April 1, 2022

March 25, 2022

Central Banks: Monetary policies are scheduled for review in the Czech Republic, Colombia and Thailand. The Bank of Japan publishes a summary of this past week’s Board meeting and the results of its quarterly survey of corporate conditions and expectations, known as the Tankan. New York Fed President Williams, Bank of England MPC member Broadbent, […] More

Central Bank Watch

Norwegian Central Bank Rate Hike

March 24, 2022

The Bank of Norway‘s policy interest rate was increased today by 25 basis points to 0.75%, matching incremental increases last September and December from a pandemic low of zero percent. The move was supported by all members of the Monetary Policy and Financial Stability Committee. However, a released statement served notice that inflation and wage […] More

New Overnight Developments Abroad - Daily Update

Stagflationary Outlook Gaining Traction and Western Leaders in Brussels Plan Contingent Plans for Ukraine Crisis

March 24, 2022

The world’s attention today is on Brussels where U.S. President Biden will be meeting with NATO allies, the European Council of political leaders, and Other Group of Seven members. The meetings are meant to coordinate a response to Russia’s continuing invasion of Ukraine, where the use of Russian weapons of mass destruction appears increasingly probable. […] More

New Overnight Developments Abroad - Daily Update

Financial Markets Bracing for More Aggressive Interest Rate Hikes by Fed and Other Central Banks

March 23, 2022

Investors increasingly are in an Armageddon state of mind. The question being considered is “what if,” and it is being applied in several directions. What happens if Putin resorts launches crippling cyber attacks on infrastructure systems in the United States and its allies, or resorts to weapons of mass destruction, whether chemical, biological or nuclear? […] More

Central Bank Watch

Full Percentage Point Hike of National Bank of Hungary’s Base Rate Exceeds Expectations

March 22, 2022

According to a statement released today by Hungary’s Monetary Policy Council, The outbreak of the Russia-Ukraine war has led to a further increase in upside risks to inflation: continued rises in commodity and energy prices point to a persistently high external inflation environment. In addition, elevated inflation may persist for longer as a domestic inflationary […] More

New Overnight Developments Abroad - Daily Update

Sovereign Debt Yields Climb Higher around the World After Powell Suggests Bigger Incremental Tightenings May Be Coming

March 22, 2022

Ten-year sovereign debt yields rose today by five basis points in the United States, four bps in Germany, and three bps in France and Italy. Chairman Powell sees a possible need for individual increases in the federal funds rate that exceed 25 basis points. Many other central banks have already been doing that, and speculation […] More

Central Bank Watch

First Egyptian Central Bank Rate Hike in Nearly Five Years

March 21, 2022

At an unscheduled meeting, monetary officials in Egypt raised their overnight deposit rate by a full percentage point to 9.25%. That was its first tightening since a hike to 18.75% from 16.75% in July 2017 and the first rate change since a pair of 50-basis point reductions in September and November 2020. At the outset […] More

New Overnight Developments Abroad - Daily Update

China Plane Crash, Japanese Holiday, No Let-Up in Ukraine Clash, and a Percentage Point Hike in Egypt’s Central Bank Interest Rate

March 21, 2022

The dollar rose overnight by 0.4% against sterling and the Aussie dollar, 0.2% versus the Canadian dollar, 0.2% relative to the Canadian dollar, and 0.1% against the Swiss franc, euro, peso, and Turkish lira. With Japanese domestic markets closed for the Vernal Equinox, dollar/yen has remained steady. Capital controls continue to stabilize the Russian ruble […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: March 19 – 25, 2022

March 18, 2022

Central Banks: Interest rate-setting meetings are scheduled in Switzerland, China, The Philippines, Mexico, Norway, Hungary and South Africa. Bank of Japan minutes will be published. Event: The Council of European Union leaders is meeting late in the week. Scheduled U.S. Economic Data Releases: Quarterly current account and monthly durable goods orders, pending home sales, U. […] More

New Overnight Developments Abroad - Daily Update

A Turn for the Worse in Ukraine-Russian Conflict Sends Dollar Up and Equities Down

March 18, 2022

Hopes had been kindled early this week by reports of progress in cease-fire talks, but those signs have not panned out, and a new worry is that China is moving closer to supporting Putin’s imperialistic ambitions. The Central Bank of Russia did not raise its 20% policy rate further at today’s scheduled review, claiming that […] More

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