New Overnight Developments Abroad - Daily Update
November PMIs and Many U.S. Releases Just Before the Thanksgiving Break
November 23, 2022
Japanese are observing their Labor Thanksgiving holiday today, and Americans are getting ready for Thanksgiving, which will see a closure tomorrow and an extended long weekend for many companies. The dollar fell overnight by 1.0% against sterling, which crossed above the $1.2000 threshold, up from a 2022 low of $1.0349. The dollar also lost 0.7% […] More
New Overnight Developments Abroad - Daily Update
Dollar and Sovereign Debt Yields Lower, while Equities Rebound
November 22, 2022
The dollar fell overnight by 0.8% against the Swiss franc, 0.5% versus the yen and sterling and 0.3% relative to the euro, Aussie dollar and loonie. Ten-year sovereign debt yields dropped six basis points in the U.S., four bps in the U.K. but just a basis point in Germany. The DOW and S&P 500 are […] More
Central Bank Watch
50-Basis Point Israeli Central Bank Rate Hike Brings Cumulative Increase Since April to 315 Basis points
November 21, 2022
The Bank of Israel’s new policy rate now becomes 3.25%, an 11-year high after the sixth increase this year. The rate had previously been just 0.10% since a 15-basis reduction in April 2020 and maintained there for two years. Like many monetary authorities around the world, Bank of Israel officials are fighting above-target and increasingly […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: November 19 – 26, 2022
November 18, 2022
Central Banks: Monetary policy reviews are scheduled next week in Turkey, Sri Lanka, South Africa, Iceland, Sweden, South Korea, New Zealand, Israel, and Hungary. FOMC minutes will be published Wednesday. Bostic and Mester of the Fed have public speaking engagements, and so do Governors Orr and Lowe of the Reserve Banks of New Zealand and […] More
New Overnight Developments Abroad - Daily Update
Somewhat Softer Dollar but Equities and Sovereign Debt Yields Ending Week on Front Foot
November 18, 2022
In overnight foreign exchange action, the dollar fell 1.0% against the kiwi, 0.7% relative to sterling, 0.6% against the Chinese yuan, 0.5% versus the Australian dollar, 0.3% against the Japanese yen and 0.2% against the euro. The DXY dollar index, where the USD/EUR relationship dominates, also edged down 0.2%. U.S. stock futures point to a […] More
Central Bank Watch
Indonesian and Filipino Central Bank Rate Hikes
November 17, 2022
Bank Indonesia’s policy interest rate underwent its fourth increase since an initial 25-basis point move in August, rising to 5.25% from 4.75%. Hikes in September and October had also been by a half percentage point. In response to the pandemic, five 25-basis point cuts in 2020 were culminated with a final reduction to 3.50% in […] More
New Overnight Developments Abroad - Daily Update
Don’t Even Think that Monetary Tightening Is Going to Pause
November 17, 2022
Central bankers in the United States and around the world are doubling down to quell any investor notions that monetary tightening is about to pause while assessing the delayed results of restraint already in the pipeline. That was the message from recent comments by the Kansas City and San Francisco Fed Presidents and the actions […] More
New Overnight Developments Abroad - Daily Update
Market Reaction Muted to Missile Strike in Poland
November 16, 2022
A Russian-made missile struck a grain facility inside Poland, but it remains unclear who fired that round or from where such came. World leaders were fortunately already assembled in Bali, Indonesia, for the Group of Twenty annual summit, and an emergency meeting to forestall a direct Nato-Russian military conflict has so far prevented an outsized […] More
New Overnight Developments Abroad - Daily Update
Fresh Developments Driving Investor Hopes
November 15, 2022
Equities in the Pacific Rim rose by 4.1% in Hong Kong, 2.6% in Taiwan, and 1.6% in China as yesterday’s talks between the presidents of the United States and China went as well as could have been expected considering their government’s significant differences. The South Korean Kospi rose only 0.2%, and Japan’s Nikkei dipped 0.1%. […] More
New Overnight Developments Abroad - Daily Update
Dollar Rebounds on Fed Comment
November 14, 2022
Federal Reserve Governor Waller opined that financial markets had over-reacted to the lower-than-expected U.S. October CPI inflation data. The remark was predictable, since Fed officials for years have said that policy is not guided by single data points. Nonetheless, on a day with few data releases his comment has been the day’s leading financial market […] More
