New Overnight Developments Abroad - Daily Update
Dollar a Bit Weaker
May 19, 2023
The dollar is 0.8% and 0.6% weaker today against the New Zealand and Australian currencies and has also settled back 0.4% against the Chinese yuan, 0.3% versus the Swiss franc, 0.2% relative to the euro and sterling and 0.1% relative to the Canadian dollar and Mexican peso. European equity advances so far this Friday range […] More
New Overnight Developments Abroad - Daily Update
Optimism Growing that U.S. Debt Default Can Be Averted; Inflation Still Too High; and G7 Leaders Gathering in Hiroshima for Annual Summit
May 18, 2023
Negotiator comments that progress is being made in the U.S. debt ceiling talks is better than the alternative, but investor caution is advised. The vote to elect Kevin McCarthy Speaker of the House underscored the great difficulty in getting Republican members to agree on anything constructive. Best to assume that a U.S. default has been […] More
New Overnight Developments Abroad - Daily Update
Investors More Hopeful Than Yesterday about Debt Ceiling Talks
May 17, 2023
The dollar rose overnight by 0.8% against the Mexican peso, 0.6% versus the Japanese yen and Swiss franc, and 0.4% relative to the euro. The Japanese Nikkei closed up 0.8%, but share prices in Hong Kong, Singapore, South Korea, India and Australia closed lower. Continental European equities are slightly higher, and so are the DOW […] More
New Overnight Developments Abroad - Daily Update
U.S. Debt Ceiling Obsession Progressively Crowding Out Other Issues
May 16, 2023
On this Tuesday, The second estimate of Euroland growth in 1Q was reported, leaving GDP unrevised at 0.1% higher than in the final quarter of 2022 and 1.3% above its year earlier level, down from four-quarter advances of 1.8% in 4Q 2022 and 5.5% in the first quarter of last year. Last quarter saw the […] More
New Overnight Developments Abroad - Daily Update
Dollar, Equities, and Sovereign Debt Prices Somewhat Lower to Start New Week
May 15, 2023
Compared to closing levels before the weekend, the U.S. currency has lost 0.6% against the Australian dollar, 0.5% versus sterling, 0.4% relative to the Swiss franc,and 0.3% vis-a-vis the euro, New Zealand dollar, and Canadian dollar. Alternatively, the U.S. dollar has risen 0.5% against the Turkish lira and 0.3% versus the Japanese yen. Following higher […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: May 13 – 19, 2023
May 12, 2023
Central Banks: Monetary policy reviews scheduled in the Philippines and Mexico. Minutes of last Reserve Bank of Australia Board meeting will be published. Several Fed officials to speak publicly, including Powell, Barr, Williams, Jefferson, Cook, Bostic, Mester, and Kashkari. Bank of Governor Bailey also speaks publicly. Holidays and Special Events: Ascension Day on Thursday. Turkish […] More
New Overnight Developments Abroad - Daily Update
Another Week Has Passed With Little Progress in the U.S. Debt Limit Stalemate
May 12, 2023
Debt talks that were to have occurred today have been reportedly postponed. The debt limit sword hanging over financial markets is taking a toll on sentiment, but markets are acting more like a dripping faucet than a broken water main. Equities had a down week, including overnight losses of 1.1% in China, 0.7% in Indonesia […] More
Uncategorized
Another Bank of England Interest Rate Hike
May 11, 2023
As expected, the Bank of England’s Base Rate was increased by 25 basis points to 4.50%, although two of the nine members of the Monetary Policy Committee voted to leave the rate at 4.25%. By tightening again on top of 75 basis points of increase earlier this year and rate hikes from 0.10% at the […] More
New Overnight Developments Abroad - Daily Update
Lower Inflation But Spreading Troubles for Regional Banks
May 11, 2023
Investors remain edgy. PacWest is the latest bank to report a big exodus of deposits. Disney stock dropped sharply. The standoff in the debt ceiling talks hasn’t shown any sign of cracking. Equities closed down 0.8% in China, Indonesia, Taiwan and Australia. The German Dax and Dow Jones Industrials are also off 0.8% so far […] More
Central Bank Watch
Georgian Central Bank Rate Cut 50 Basis Points in First Decline Since the Early Months of the Pandemic
May 10, 2023
In the former Soviet Republic of Georgia, interest rate easing commenced today. The National Bank of Georgia’s policy rate had been cut in the early months of 2020 by 100 basis point in total to 8.0% by May of that year. The rate was raised 250 basis points during 2020 and topped by an additional […] More
