Deeper Analysis
December and 2022 in Figures
December 30, 2022
The primary driving force behind financial market activity in 2022 was the unexpected reality that elevated inflation was not going to be short-lived and self-correcting, which resulted in substantial monetary policy tightening by almost all central banks around the world. Considerable wealth stored in fixed income securities, equities (and the technology sector in particular), and […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: December 31, 2022 – January 6, 2023
December 30, 2022
Central Banks: Monetary policies will be reviewed next week in Israel and Peru, and the Federal Open Market Committee will publish minutes of its latest policy review on Wednesday. New Year’s Day Holiday: This is the widely celebrated holiday in the calendar year. Since January 1, 2023 falls on a Sunday, a multitude of countries […] More
New Overnight Developments Abroad - Daily Update
One Last Bout of Risk Aversion in 2022
December 30, 2022
On this final trading day of the year, European share prices show losses of 1.1% in Germany and around 0.75% in France, Italy and Spain. U.S. stock futures point to comparable losses. The Japanese Nikkei closed unchanged. The Shanghai composite and India’s Sensex respectively rose 0.5% and fell 0.5%. Ten-year sovereign debt yields are up […] More
New Overnight Developments Abroad - Daily Update
Solid Year for the Dollar But Gains Were Trimmed Substantially in Final Quarter
December 29, 2022
At peak in late September, the weighted DXY dollar index had advanced about 19% in 2022, but the full year appreciation has been pared to less than 9%, including another 0.2% overnight. Compared to yesterday’s close, the dollar has fallen 0.6% against the yen, 0.5% versus the Swiss franc, 0.3% relative to the euro and […] More
New Overnight Developments Abroad - Daily Update
Post-Xmas Market Activity Uneventful
December 28, 2022
In overnight trading, the dollar is unchanged against the euro, down 0.1% vis-a-vis the Canadian dollar, and up 0.1% against the Japanese yen. Larger moves occurred against the Australian dollar (down 0.9%), sterling (down 0.5%). U.S. equity futures are up 0.2-0.3%. Share prices in the Pacific Rim fell 2.6% in Taiwan, 2.2% in South Korea, […] More
New Overnight Developments Abroad - Daily Update
No Significant Developments Amid Widespread Extended Xmas Holiday Observances
December 26, 2022
The U.S. dollar is unchanged against the euro, yen, and sterling and up 0.1% versus the Swiss franc and Australian and Canadian dollars. Markets are closed today throughout most of Europe, Latin America, Australia, New Zealand, and the Western Hemisphere. In Asia, Japan, China, South Korea, India, Taiwan, Thailand, Indonesia, Vietnam, and Pakistan are open, […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: December 24 – 30, 2022
December 23, 2022
Central Banks: A policy review at the Bank of Thailand is scheduled for Wednesday. The Bank of Japan will release a summary of last week’s Board meeting, which surprised market participants with a tweak to its 10-year JGB yield target. Holiday: Boxing Day will be observed Monday in the U.K., Canada, Hong Kong, Australia, New […] More
New Overnight Developments Abroad - Daily Update
Heaviest Data Release Day of the Week Before Christmas Yields Mixed Results
December 23, 2022
The dollar traded lower by 0.6% against the kiwi, 0.5% versus the Australian dollar, 0.4% vis-a-vis the loonie, and 0.2% relative to the euro but has also risen by 0.4% against the yen, 0.3% vis-a-vis stereling and 0.1% against the yuan and Swiss franc. Ten-year sovereign debt yields are up five basis points in the […] More
Central Bank Watch
Turkey and Indonesia
December 22, 2022
The Central Bank of Turkey did not cut its one-week 9.0% repo rate further at this month’s review, adhering to the pause that was signaled earlier. The key interest rate had been slashed by a combined 500 basis points at the four previous monthly meetings on top of of 500 basis points of reduction in […] More
New Overnight Developments Abroad - Daily Update
Fresh Reality Check Drives Stocks, Bonds and Crypto Lower but Dollar Up
December 22, 2022
The dollar strengthened 0.8% against the New Zealand currency, 0.6% relative to sterling, 0.5% versus the Australian and Canadian dollars, and 0.4% vis-a-vis the Swiss franc but just 0.1% against the euro and not at all versus the Japanese yen or Chinese yuan so far today. Equities had done mighty fine in the Pacific Rim, […] More
