New Overnight Developments Abroad - Daily Update
Stronger Dollar After Another U.S. Gun Massacre
May 25, 2022
The dollar strengthened 0.4% overnight on a weighted basis, rising 0.7% against the euro, 0.6% versus the Australian dollar, 0.4% vis-a-vis the Swiss franc, and 09.3% relative to the Canadian dollar, Russian ruble, Mexican peso and sterling. U.S. stock indices are essentially flat in futures trading, and so is the 10-year U.S. Treasury yield. The […] More
Foreign Exchange Insights and Next Week
Dollar at a Crossroads
May 24, 2022
In contrast to the past year of methodical appreciation, one can conjure up vastly divergent dollar performances over the year ahead. From lows in May 2021 to highs earlier this month, the U.S. currency climbed about 17% in weighted terms, 23.7% against the Japanese yen, 18.5% versus the euro and 17.2% relative to sterling. Many […] More
New Overnight Developments Abroad - Daily Update
Equities in Fresh Selling Wave… And Dollar Less Sturdy
May 24, 2022
Stock markets in the Pacific Rim tumbled Tuesday by 2.4% in China, 1.8% in Hong Kong, 1.6% in South Korea, 1.2% in Taiwan, and 0.9% in Japan. The German Dax and Paris Cac have lost 0.7% and 0.8%, and the tech sector is leading a similar drop of key U.S. equity futures. Snap Inc plunged […] More
Central Bank Watch
More Central Bank Rate Hikes in Pakistan, Israel, and Ghana
May 23, 2022
In all of these instances, tightening interest rate cycles inspired by accelerating inflation had begun prior to today’s moves. There have been five increases of the State Bank of Pakistan‘s policy interest rate since September 2021, when the rate was raised 25 basis points from 7.0% to 7.25%. hikes followed of 150 basis points in […] More
New Overnight Developments Abroad - Daily Update
Dollar Drops about 1%
May 23, 2022
The U.S. dollar opened this fourth week of May on a down note, falling 1.1% against the euro, 1.5% and 1.2% versus the New Zealand and Australian dollars, 0.9% relative to sterling, 0.5% against the loonie, 0.3% vis-a-vis the Japanese yen and Mexican peso, 0.8% versus the Turkish lira and 6.4% against the Russian ruble. […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: May 22 – 27, 2022
May 20, 2022
Central Banks: Monetary policy reviews are scheduled next week in South Korea, Turkey, New Zealand and Indonesia. Minutes of the FOMC’s last meeting will be published. Bank of Japan Governor Kuroda and Reserve Bank of Australia Assistant Governor Kent will be speaking publicly during the period. Holiday and Special Events: Victoria Day in Canada falls […] More
New Overnight Developments Abroad - Daily Update
Rising Inflation Dampening the Mood of Consumers Around the World
May 20, 2022
Amid bear markets, investors periodically test the waters in search of good values. Today has been one such day. The week will end with huge net share price declines, but on this Friday equities closed up 3.0% in Hong Kong, 2.9% in India, 1.8% in South Korea, 1.6% in China and Singapore, 1.4% in Indonesia […] More
Central Bank Watch
South African Reserve Bank Interest Rate Hiked 50 Basis Points after 4-1 Vote
May 19, 2022
With one dissent favoring a 25-basis point increment, South Africa’s Monetary Policy Committee agreed to increase its interest rate to 4.75%. This new level is 125 basis points above the pandemic low of 3.5% prevailing from July 2020 until November 2021 but 175 basis points below the pre-pandemic level of 6.5%. A released statement lays […] More
Central Bank Watch
Central Bank of Sri Lanka
May 19, 2022
The Central Bank of Sri Lanka Board had agreed to a shock and awe 700-basis point interest rate hike at their policy review in April and consequently decided this month to leave the standing deposit facility rate unchanged at 13.5%. “The Board was of the view that the policy measures that have already been implemented […] More
Central Bank Watch
First Filipino Interest Rate Hike Since November 2018
May 19, 2022
At the Central Bank of The Philippines, the overnight interest rate was lifted 25 basis points to 2.25% today. This was the first increase since November 2018 but leaves the rate level 175 basis points under its pre-pandemic level of 4.0%. Filipino CPI inflation rose from 3.0% in January and February to a 40-month high […] More
