Archive for September 2022

Deeper Analysis

Third Quarter 2022 in Figures

September 30, 2022

3Q 2022 was a stellar quarter for the dollar but a terrible time for equities and sovereign debt values. Almost all central banks are now on the interest rate hike bandwagon, with the Bank of Japan being the most notable exception. While oil prices lost about a quarter of their value in the period and […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: October 1 – 7, 2022

September 30, 2022

Central Banks: Monetary policy reviews scheduled in Iceland, Australia, Poland, New Zealand, Peru, Romania and Israel. The Bank of Japan quarterly Tankan survey of corporate conditions and expectations and minutes from the last European Central Bank Governing Council meeting will be published. Many Fed officials have public speaking engagements during the week, and so does […] More

Central Bank Watch

Indian Monetary Policy Tightened As Well

September 30, 2022

Excessive inflation also concerns officials at the Reserve Bank of India, who raised the repo rate by an expected half percentage point to 5.90% at this weeks policy review. Three previous hikes in May, June and August had totaled 140 basis points, more than reversing 115 basis points of ease enacted in the first half […] More

Uncategorized

Bank of Mexico Interest Rate Hiked Again

September 30, 2022

The Bank of Mexico overnight interbank rate has been increased by 75 basis points to 9.25%. The size of the increase matches the prior move in June and brings the combined increase since June 2021 to 550 basis points. The Governing Board expresses continuing determination “to set a policy rate that is consistent at all […] More

New Overnight Developments Abroad - Daily Update

Third Quarter Ushered Out With Disturbing Inflation Data, More Central Bank Hikes,High Tension in Asia, a Mega-Storm in the U.S. Southeast, and a Strong Dollar

September 30, 2022

The weighted DXY dollar index rose 0.2% overnight but is 2% below Wednesday’s peak. The dollar advanced so far today by¬† 0.4% against the euro, Swiss franc, Australian dollar and sterling but just 0.1% versus the yen. Thursday had seen heavy selling of equities. Share prices today closed down 1.8% in Japan, 1.2% in Australia, […] More

Central Bank Watch

Czech National Bank Leaves Policy Rate Unchanged for Second Meeting in a Row

September 29, 2022

The Czech National Bank had raised its two-week repo rate at every scheduled policy review between June 2021 and June 2022. Before doing this, the rate had been pinned at 0.25% since May 2020, and CPI inflation had been at 2.9% when rate normalization began. The string of rate increases was interrupted at the August […] More

New Overnight Developments Abroad - Daily Update

Sell-Off Resumes

September 29, 2022

Sovereign debt selling resumed this Thursday, sending 10-year government debt yields up by 20 basis points in Italy, 19 bps in Great Britain, 16 bps in France and the Netherlands, 15 bps in Germany and Spain, and nine basis points in the United States. Share prices are down 1-2% in the U.K., Germany, France, Italy […] More

Central Bank Watch

Thailand and Mauritius Central Bank Rate Hikes

September 28, 2022

The Bank of Thailand’s policy rate was lifted 25 basis points as expected to 1.0%. That was the second such increase, the first being done just last months. At 1.0%, the rate remains 25 basis points less than Thailand’s pre-pandemic level of 1.25%. CPI inflation had climbed to 7.86% by August, but BOT officials project […] More

New Overnight Developments Abroad - Daily Update

U.S. Official Rhetoric Restores Dollar’s Upward Trajectory

September 28, 2022

There will be no Plaza Accord this time, according to U.S. National Economic Council Director Brian Deese. The dollar had doubled in value against such currencies as the German mark from late 1980 to early 1985 and was generating big strains in trade flows. The dollar had corrected partly in the spring but was threatening […] More

Deeper Analysis

Rundown of Tuesday U.S. Data Releases

September 27, 2022

Home price inflation decelerated in July to a 15-month low of 16.1% according to the Case-Shiller index and to a 17-month low of 13.9% meaured by the FHFA index. The Dallas Fed manufacturing survey index weakened 4.3 points to a 2-month low of -17.2 in September, but the Richmond Fed manufacturing index recovered eight index […] More

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