New Overnight Developments Abroad - Daily Update
A Parade of Central Bank Interest Rate Decision and A Shift Away from Risky Assets
September 21, 2023
Sovereign debt has been well-bid in the wake of the Fed’s message not to expect interest rates to fall much in 2024. Many other central banks have chimed in with hawkish messages today. Ten-year sovereign debt yields rose overnight by nine basis points in Italy, seven basis points in the U.K., six bps in the […] More
Deeper Analysis
FOMC Signals Only One Likely Interest Rate Hike Next Quarter But Less Reduction in 2024 Than Presumed Earlier
September 20, 2023
FOMC members voted unanimously not to increase the federal funds rate at their sixth scheduled monetary policy review of 2023, and they signaled that at the end of this year the rate is likely to be only 25 basis points higher than now. The big surprise to Fed officials regarding how the U.S. economy has […] More
Central Bank Watch
FOMC Preview
September 20, 2023
Today’s is the sixth of eight scheduled policy meetings in 2023. After ten straight interest rate hikes beginning in March 2022, the Federal Open Market Committee left the federal funds target unchanged at this year’s June meeting but implemented an 11th increase at the subsequent meeting eight weeks ago. Compared to the pandemic low range […] More
New Overnight Developments Abroad - Daily Update
Disinflationary News from U.K. and Germany Ahead of FOMC Statement
September 20, 2023
The dollar slipped overnight by 0.4% against the Australian and New Zealand currencies, 0.2% versus the euro and peso, and 0.1% relative to the Canadian dollar and Swiss Franc. Equities closed down 1.2% in India, 0.7% in Japan, 0.6% in Taiwan and Hong Kong and 0.5% in China but are currently showing overnight gains of […] More
New Overnight Developments Abroad - Daily Update
Softer Dollar As 2-Day FOMC Meeting Gets Underway
September 19, 2023
The dollar slipped overnight by 0.4% against the Canadian, Australian and New Zealand dollars, 0.2% relative to sterling, 0.3% against the peso and 0.1% vis-a-vis the euro and Swiss franc. Dollar/yen is steady. Share prices fell 0.9% in Japan, 0.7% in Singapore, 0.6% in South Korea, 0.5% in Australia and 0.4% in India and Taiwan. […] More
New Overnight Developments Abroad - Daily Update
Slow Start to a Week Chocked Full of Central Bank Policy Meetings and Data
September 18, 2023
The dollar softened overnight by 0.2% relative to the yen, Swiss franc, Aussie dollar and sterling and by 0.1% against the euro, Canadian dollar and Mexican peso. Stock markets fell 1.4% in Hong Kong, 1.3% in Taiwan, 1.0% in South Korea, and 0.7% in Indonesia and Australia. Share prices so far show losses today of […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: September 16, 2023
September 15, 2023
Central Banks: A thick calendar of central bank meetings includes the Federal Reserve, Bank of Japan, Bank of England, People’s Bank of China, Swedish Riksbank, Bank of Korea, Bank Indonesia, Bank of Norway, Central Bank of Brazil, Central Bank of the Republic of China (Taiwan), Central Bank of Turkey, Central Bank of the Philippines, and […] More
Central Bank Watch
Russian Interest Rate Hike
September 15, 2023
Faced with consumer price inflation that in between May and August accelerated to a 9.9% annualized pace, officials at the Central Bank of Russia felt compelled to lift its interest rate by another full percentage point to 13.0%. This increase comes on top of hikes of 100 bps in July and 350 bps in August. […] More
Central Bank Watch
Peruvian Central Bank Interest Rate Cut
September 15, 2023
The board of directors at the Central Reserve Bank of Peru as expected cut its reference interest rate by 25 basis points to 7.50%. This reduction reverses the final hike of 25 basis points in a sequence of tightening from a starting point of 0.25% in August 2021 that ended at 7.75% in January 2023. […] More
New Overnight Developments Abroad - Daily Update
Dollar and Price of Oil Strengthen Further
September 15, 2023
Chinese data for August released Friday beat expectations. On year increases in retail sales and industrial production of 4.6% and 4.5% represent 3- and 4-month highs, and the jobless rate fell 0.1 percentage point back to the 5.2% level of the second quarter. That was the lowest in 16 months. To be sure, there were […] More
