Deeper Analysis
February 2023 in Figures
February 28, 2023
The dollar appreciated significantly and broadly during February as risk aversion returned. The tone of remarks by Federal Reserve officials became more hawkish, and U.S. price and activity data suggested that U.S. monetary policy is not yet out in front of the problem and will need to be tightened more than previous forward guidance had […] More
New Overnight Developments Abroad - Daily Update
4Q 2022 GDP Growth in Many Economies Reported This Last Day of February
February 28, 2023
The dollar is little changed aside from a gain of 0.4% against the yen and a 0.3% drop versus sterling. Ten-year sovereign debt yields have risen six basis points in Germany, France, Italy and Spain and by two bps in the United States and Great Britain. Share prices have been resilient today, considering the rise […] More
New Overnight Developments Abroad - Daily Update
Worried but Bottom-Fishing After a String of Down Weeks
February 27, 2023
Bearish European reported today didn’t deter investors from testing the upside potential of share prices. European stock markets prior to the U.S. open were up by 0.7% in the U.K. and 1.4-1.9% in Germany, France, Italy and Spain. U.S. equity futures show more modest gains, and stock markets in the Pacific Rim closed down this […] More
Foreign Exchange Insights and Next Week
This Week’s Menu: February 25 – March 3, 2023
February 25, 2023
Central Banks: Monetary policy stances will be reviewed in Sri Lanka and Hungary. Minutes of recent credit policy meetings will be published by the Central Bank of Turkey and European Central Bank. Governor Bailey of the Bank of England and incoming Bank of Japan Governor Ueda will be speaking publicly. Special Events: A general election […] More
New Overnight Developments Abroad - Daily Update
Dollar Strengthens Ahead of Release of U.S. Personal Consumption Price Deflator
February 24, 2023
Broad-based dollar strength overnight has yielded appreciations of 0.8% against the Australian and New Zealand dollars, 0.7% relative to the yen, 0.5% versus the yuan, 0.4% vis-a-vis the loonie, peso and sterling and 0.3% against the euro. The weighted DXY dollar index is 3.6% above its level at the start of this month. Ten-year sovereign […] More
Central Bank Watch
Turkish Central Bank Rate Cut
February 23, 2023
The Central Bank of Turkey‘s policy interest rate has swung widely since 2019. In 2020 when the pandemic first hit, the rate was initially cut by a total 375 basis points to 8.25% in January-May but then hiked 1,075 basis points to 19.0% by March 2021. Later that year, the rate was slashed 500 basis […] More
New Overnight Developments Abroad - Daily Update
Reacting to FOMC Minutes and Awaiting More U.S. Data Reports
February 23, 2023
FOMC minutes published Wednesday afternoon confirmed that some policymakers at the Fed leaned toward a 50-basis point hike rather than the 25-bp increase agreed upon. Consideration of a pause in tightening was off the table, and there was widespread consent that more rate hikes will be necessary. Investors now await revised 4Q U.S. GDP figures, […] More
Central Bank Watch
New Zealand’s Tenth Central Bank Rate Hike
February 22, 2023
New Zealand’s Official Cash Rate has undergone its tenth hike since October 2021, and the 50-basis point increase matched market expectations. Although not a surprise, the Reserve Bank of New Zealand policymakers haven’t been deterred from getting ahead of inflation despite the country’s recent devastating cyclone underscores a reality that investors bet against central bank […] More
New Overnight Developments Abroad - Daily Update
Equities Tumbling in Many Countries… FOMC Minutes To Be Released Later Today
February 22, 2023
Tuesday’s sharp drop in the U.S. stock market set the tone for European and Asian equities today, with markets closing down 1.7% in South Korea, 1.5% in India, 1.3% in Japan, 0.9% in Taiwan and Indonesia, and 0.5% in China and Hong Kong. Italian stocks currently show a loss of 1.2%, but other key markets […] More
New Overnight Developments Abroad - Daily Update
Case for Central Bank Authorities to Pause Tightening
February 21, 2023
With markets in the United States and Canada set to reopen following their 3-day weekends, ten-year sovereign debt yields have climbed today by 12 basis points in the U.K., 7 bps in the United States and Italy, and 4 basis points in Germany, France and Spain. The yield on the 10-year Japanese government bond is […] More
