Foreign Exchange Insights and Next Week
This Week’s Menu: April 29 – May 5, 2023
April 30, 2023
Central Banks: Monetary policy reviews are scheduled at the Federal Reserve Bank, European Central Bank, Reserve Bank of Australia, Czech National Bank, Bank of Norway, Central Bank of Brazil and Central Bank of Malaysia. Fed Chairman Powell, RBA Governor Lowe, Bank of Canada Governor Macklem, and ECB President Lagarde are some of the central bank […] More
Deeper Analysis
April 2023 in Figures
April 28, 2023
In April, sovereign debt yield movements were mixed, equities rose, and the yen and dollar weakened. Oil and gold prices rose modestly. None of the central banks in the table below experienced an interest rate change. 10-Yr Yield 03/31/23 04/28/23 April Change U.S. 3.47% 3.44% -3 Basis Points Germany 2.29% 2.31% +2 Japan 0.20% 0.38% […] More
Central Bank Watch
25-Basis Point Hike of Central Bank of Colombia’s Interest Rate
April 28, 2023
A split vote agreed to yet another 25-basis point interest rate hike at April’s monetary policy review. The new 13.25% interest rate is the third increase of 2023, defying expectations of a pause. Two of the seven policymakers favored not changing the rate level, but a separate minority of one voted for a 50-basis point […] More
Central Bank Watch
The Bank of Japan’s First Board Meeting of Governor Ueda’s Stewardship
April 28, 2023
Governor Ueda did not initiate a clean break away from his predecessor’s policy, retaining a short-term interest rate of -0.1%, an target of around zero percent for the 10-year JGB yield, with a 0.5 percentage point daily buffer, and a commitment to more stimulus if and when such is deemed necessary to keep an eventual […] More
New Overnight Developments Abroad - Daily Update
Banking System Concerns and Further Evidence that Growth Has Slowed
April 28, 2023
The dollar jumped 1.6% against the yen following the first Bank of Japan Board meeting led by Governor Ueda. He did not initiate a clean break away from his predecessor’s policy, retaining a short-term interest rate of -0.1%, an target of around zero percent for the 10-year JGB yield, with a 0.5 percentage point daily […] More
Central Bank Watch
Swedish Central Bank Rate Hike
April 26, 2023
The Swedish Riksbank repo rate was raised by an as-expected half percentage point to a 14-1/2 year high of 3.5%. The rate had been has low as -0.5% prior to a hike in December 2019 and was at zero percent as recently as a year ago. Four increases later had lifted the repo rate to […] More
New Overnight Developments Abroad - Daily Update
Fresh Concerns about the Banking System, But Also Some Good News from Tech Sector
April 26, 2023
First Republic Bank’s deposit base hemorrhaged over $100 billion last quarter. This disclosure sent the company’s stock price plunging 49% overnight. In contrast, the earnings reports of Alphabet and other tech giants surprised on the upside, and the Nasdaq has risen 1.2% in futures trading. In overseas equity markets, Japan’s Nikkei stock index closed down […] More
New Overnight Developments Abroad - Daily Update
Worries about China’s Economy Weigh on Equities but Support Dollar
April 25, 2023
Multiple concerns continue to percolate about China’s economic outlook such as insufficient growth in the labor force, Xi’s policy shift toward security at the expense of growth, trade tensions with the U.S., excessive debt, and an imbalanced domestic property sector. Share prices fell Tuesday by 1.7% in Hong Kong, 1.6% in Taiwan, 1.4% in South […] More
New Overnight Developments Abroad - Daily Update
A Lack of Direction at Start of New Week
April 24, 2023
In financial market action around the world, the dollar is unchanged from its pre-weekend closing levels against the loonie, sterling, kiwi and Chinese yuan. There’s been a rise of 0.4% against the yen but a drop of 0.2% versus the euro and Swiss franc. U.S. equity futures have edged marginally lower in spite of a […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: April 22 – 28, 2023
April 21, 2023
Central Banks: Monetary policies will be reviewed in Japan, Russia, Turkey, Ukraine, Sweden, Colombia, Hungary, and Kyrgyzstan. Bank of Canada Board minutes and the Bank of Japan Outlook for Economic Growth and Prices will be published. Holidays and Events: Italian Liberation Day on Tuesday. Anzac Day is celebrated in New Zealand and Australia early in […] More
