Central Bank Watch
Fifty-Basis Point Israeli Central Bank Rate Hike Exceeds Street Estimates
February 20, 2023
At 4.25%, the new Bank of Israel policy rate level is the highest in 172 month, and the latest Israeli CPI inflation rate (5.4%) is at its highest level in 171 months. With today’s 50-basis point increase, the Bank of Israel joins the National Bank of Serbia as ones that have already implemented a pair […] More
Deeper Analysis
The Dollar Then and Now Highlights Why the Current Inflation Has Been Different from the Previous Bout
February 20, 2023
The dollar was a poorly bid currency during the high-inflationary period of the 1970’s. In the wake of World War Two, a new international monetary system based on fixed dollar parities and dollar-gold convertibility was established, and it performed well in the 1950’s and early 1960’s. Difficulties arose in the second half of the 1960’s […] More
New Overnight Developments Abroad - Daily Update
Biden in Show of Support Visits Kyiv on U.S. Presidents Day and Near One-Year Anniversary of Russian Invasion
February 20, 2023
Biden’s visit to Kyiv for talks with Zelensky was not pre-announced and comes amid indications of some western allies growing tired of the unresolved Russian-Ukraine war. U.S. and Canadian markets will be closed today for Presidents Day and Family Day, respectively. Such holidays typically sap world financial markets of a degree of leadership and direction. […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: February 18 – 24, 2023
February 17, 2023
Central Banks: Interest rate announcements are scheduled next week in China, Turkey, South Korea, New Zealand, Argentina and Israel. Minutes of last policy meetings are to be published by the FOMC, Bank of Mexico, Reserve Bank of India, and Reserve Bank of Australia. New Zealand’s quarterly Monetary Policy Statement also arrives. Three Holidays of Note: […] More
New Overnight Developments Abroad - Daily Update
Equity Slide Gets Extended
February 17, 2023
After decelerating in many countries during the final months of 2022, inflationary pressures intensified last month, and it didn’t take long for U.S. monetary officials to ramp up the projected path of interest rate hikes during the first half of this year. Federal Reserve District Presidents Mester of Cleveland and Bullard of St. Louis each […] More
Central Bank Watch
Policy Reviews in Rwanda, Indonesia and The Philippines
February 16, 2023
Policy interest rates at the National Bank of Rwanda and Central Bank of The Philippines each were raised today by 50 basis points. For Rwanda, the hike was the fourth over the past year and matched the size of the previous increase three months ago. At 7.0% after the latest increase, the rate is 250 […] More
New Overnight Developments Abroad - Daily Update
Dollar Dips Again
February 16, 2023
The dollar slid overnight by 0.1% against the euro, Swiss franc and sterling, stayed unchanged versus the Canadian and Australian dollars, and firmed 0.2% relative to the Japanese yen. The weighted DXY dollar index is 0.2% softer and trading 9.7% below its 52-week high touched in the final week of last September. The dollar’s climb […] More
Central Bank Watch
Central Bank Rates Hiked in Zambia and Namibia
February 15, 2023
th a reading of -5.8. Such had dropped in January by 21.7 index points to minus 32.9. U.S. mortgage applications dropped 7.7% last week in reaction to a 21-basis point rise in the 30-year fixed mortgage rate to 6.39%. Two central banks in Africa raised their key interest rates today. The Bank of Zambia‘s policy […] More
New Overnight Developments Abroad - Daily Update
Dollar Lifted by Signs of Stronger U.S. Growth than Assumed
February 15, 2023
The weighted DXY dollar index advanced 0.7% overnight. Gains range from 1.5% against the Aussie dollar and 1.3% versus sterling to 0.8% relative to the Japanese yen and Mexican peso, 0.6% against the euro and loonie, and 0.4% relative to the Chinese yuan and Swiss franc. U.S. stock futures are down 0.5-0.6%. Investors have abandoned […] More
New Overnight Developments Abroad - Daily Update
Euroland & Japanese GDP Released Before U.S. Consumer Prices
February 14, 2023
On this significant data release day, investors already have perused fourth-quarter GDP figures for many economies, British labor market statistics, and Swiss and Indian producer prices. Now they await the January U.S. CPI report. In financial market action, the dollar fell overnight by 0.6% against sterling, 0.4% versus the euro, 0.3% relative to the Australian […] More
