Deeper Analysis
Second Quarter 2022 in Figures
June 30, 2022
Financial markets experienced a large shakeout during the second quarter of 2022. Central bankers around the world have concluded that the spike of inflation is not going to dissipate without monetary policies transforming to a restrictive stance, and even if that happens the environment is so greatly changed by the pandemic, Russian war, and legacy […] More
Central Bank Watch
50-Basis Point Interest Rate Hike at Swedish Riksbank
June 30, 2022
As expected and in the face of its highest inflation in over 30 years, the Executive Board at the Swedish Riksbank intensified the speed of stimulus withdrawal. The policy interest rate, which from a negative 0.50% base, had been raised by 25 basis points each in December 2018, December 2019 and April 2022, was hiked […] More
New Overnight Developments Abroad - Daily Update
Quarter-End Data Blast Includes Several Extremes
June 30, 2022
It’s been a good session for the dollar but a disastrous one for equities and Bitcoins. The weighted DXY dollar index has climbed 0.4%, and came within 0.2% of its multi-year high during overnight hours. The dollar has risen 0.6% against the euro, 0.4% relative to the Swiss franc and Mexican peso, 0.3% vis-a-vis the […] More
Central Bank Watch
Size of Hungarian Central Bank Interest Rate Hike Increased Sharply
June 29, 2022
In Hungary, Magyar Nemzeti Bank’s base rate has been lifted by a greater-than-forecast 185 basis points to 7.75%. This was the 13th straight monthly tightening of monetary policy and surprised analysts because the 50-basis point rise done in May had been only half the size of the previous two increases. The pandemic low basie rate level […] More
New Overnight Developments Abroad - Daily Update
Consumers in a Funk
June 29, 2022
Consumer hope around the world is being squeezed by high inflation, rising interest rates, and dismaying political developments. Many consumer sentiment measure have been reported during the past 24 hours. The Conference Board’s U.S. consumer sentiment index tumbled 4.5 points to a 28-month low in June. The drop exceeded analyst expectations. Japanese consumer confidence fell […] More
New Overnight Developments Abroad - Daily Update
G7 Summit Wrapping Up, ECB to Raise Interest Rates, and Evidence of Softening Consumer and Business Confidence
June 28, 2022
Dollar movements overnight have been narrowly mixed, with declines of 0.4% against the loonie, 0.5% versus the ruble, 0.2% vis-a-vis the Australian dollar, and 0.1 relative to the Swiss franc but gains of 0.5% against the yen, 0.4% relative to the kiwi, 0.2% versus sterling, and 0.1% against the euro, peso and on a weighted […] More
New Overnight Developments Abroad - Daily Update
Closing in on Midyear
June 27, 2022
Leaders of the Group of Seven (U.S., Japan, Canada, Germany, France, Italy, Great Britain and the EU) are holding their annual summit, hosted by Germany in the Bavarian Alps and focusing upon coordinating efforts to contain climate change and resist to Russian aggression. The Conference began yesterday and runs through tomorrow, and the top goal […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: June 25 – July 1, 2022
June 24, 2022
Central Banks: Monetary policy reviews are scheduled in Thailand, Sweden and Hungary. The Bank of Japan will be publishing its quarterly Tankan survey of corporate conditions and expectations, as well as a summary of its most recent Board meeting. Bank of Governor Bailey speaks publicly. Holiday and Events: The annual summit of G7 leaders will […] More
Central Bank Watch
Another Bank of Mexico Policy Rate Hike
June 24, 2022
The Bank of Mexico’s overnight interbank rate was lifted by 75 basis points to 7.75%, matching market expectations and also the recent incremental tightening of the federal funds rate. 7.75% constitutes the Mexican policy rate’s highest elevation since shortly before the pandemic’s onset. The rate’s pandemic low of 4.0% occurred between February and June of […] More
New Overnight Developments Abroad - Daily Update
Softer Dollar and Yen
June 24, 2022
The dollar firmed 0.2% overnight against the yen but otherwise slipped 0.3% against the Swiss franc, peso, and kiwi, 0.2% relative to the loonie and sterling, and 0.1% versus the euro and on a weighted DXY basis. Equity markets are headed for a weekly advance, which has been a rare occurrence in 2022. The street […] More
