Archive for May 2022

New Overnight Developments Abroad - Daily Update

Final Day of May

May 31, 2022

U.S. share prices seem headed for a drop on this final day of May. The Nikkei closed down 0.3%, and the German Dax has fallen 0.9%. The dollar, however, has risen 0.3% on a a weighted basis, and a 9-basis point increase in the U.S. Treasury yield out-distances gains of five and three basis points […] More

Central Bank Watch

Many Central Banks Raised Their Key Interest Rate During May — Here’s a Tally

May 30, 2022

Accelerating inflation has been a global problem, and a result has been a scramble by central banks around the world to undo stimulus related to the Covid-19 pandemic. In a number of cases, rate now exceed their pre-pandemic levels. This update looks only at central banks whose interest rates were raised this month and compares […] More

New Overnight Developments Abroad - Daily Update

Focus on European Data Releases and Lessening Covid Restrictions in China on this U.S. Memorial Day

May 30, 2022

Following Friday’s strong advance in U.S. equities, share prices in the Pacific Rim went up today by a sharp 2.1% in Hong Kong and Taiwan, 2.2% in Japan, 1.9% in India, 1.5% in Australia and 1.2% in South Korea. There have also been gains so far of 0.6% in the German and French stock markets […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: May 28 – June 3, 2022

May 27, 2022

Central Banks: Monetary policies will be reviewed in Canada, Hungary and the Czech Republic. A policy review had been scheduled for June 2 in Ukraine but presumably will be postponed. As explained previously, “under current conditions, market monetary instruments have limited impact on the money and FX markets. As the NBU announced in March, the […] More

New Overnight Developments Abroad - Daily Update

Dollar Narrowly Mixed and Equities Seemingly Headed for First Weekly Rise in Nearly Two Months

May 27, 2022

The weighted DXY dollar index fell initially in overnight trading but recovered to show minuscule net change. Relative to specific other currencies, the dollar shows overnight net gains of 0.5% against the ruble, 0.2% versus the Turkish lira and 0.1% vis-a-vis the euro, and there’s been no change against the Swiss franc. Losses have occurred […] More

Central Bank Watch

Unscheduled Policy Review in Russia Leads to Another Three Percentage Point Interest Rate Cut

May 26, 2022

In an unscheduled policy meeting at the Central Bank of Russia, officials implemented their third 300-basis point interest rate cut since April 8 and “holds open the prospect of key rate reduction at its upcoming meetings.” Economic growth in Russia appears to have slumped very sharply this quarter. The ruble plunged very sharply when Russia’s […] More

Central Bank Watch

South Korea’s Fifth 25-Basis Point Central Bank Interest Rate Hike since August

May 26, 2022

The Bank of Korea’s seven-day bank rate was raised again by 25 basis points. It was the fifth such increase since last August, the third one of 2022, and the second straight monthly meeting in which officials tightened. At 1.75%, the interest rate is back to the level prevailing between July and October of 2019. […] More

New Overnight Developments Abroad - Daily Update

Thursday’s Focus Turns to Central Banks

May 26, 2022

The dollar slid overnight by 0.2% against the euro, yen, sterling, and Mexican peso and by 0.1% versus the Swiss franc and on a weighted basis. Alternatively the U.S. currency advanced 0.6% relative to the Chinese yuan, 0.3% relative to the Russian ruble, and 0.2% vis-a-vis the Turkish lira. The kiwi, Aussie dollar and Canadian […] More

Central Bank Watch

FOMC Minutes

May 25, 2022

FOMC minutes from the meeting of May 3-4 confirmed that most members favored raising interest rates by an increment of 50 basis points rather than 25 bps in the next several meetings. No surprise there, as that’s essentially what Chairman Powell conveyed right after the meeting ended. The minutes also reveal a readiness if deemed […] More

Central Bank Watch

New Zealand Interest Rate Hike

May 25, 2022

The Reserve Bank of New Zealand’s official cash rate was raised by the expected amount, 50 basis points to 2.0%, but the released statement ramps up the commitment to restoring price stability. The Committee is resolute in its commitment to ensure consumer price inflation returns to within the 1 to 3 percent target range. Consistent […] More

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