Foreign Exchange Insights and Next Week
Next Week’s Menu: December 30, 2023 – January 5, 2024
December 29, 2023
Central Banks: The Bank of Israel holds an interest rate-setting meeting, and minutes from the December 12-13 FOMC meeting will be published. Holiday Closures: New Years Day is the most widely observed holiday in the calendar year, and no country of market significance will be open Monday. Some markets like those in New Zealand and […] More
New Overnight Developments Abroad - Daily Update
Yearend
December 29, 2023
On this final business day of 2024, U.S. stock futures are flat, the dollar is mixed, and 10-year sovereign debt yields have risen. The dollar lost 0.9% and 0.5% overnight against the Swiss franc and Chinese yuan but climbed 0.6% versus the Australian dollar, 0.4% relative to the much beleaguered Turkish lira, and 0.3% against […] More
New Overnight Developments Abroad - Daily Update
Investor Enthusiasm Pauses
December 28, 2023
Two opposing themes are vying for the attention of investors: 1) rising hopes that an initial interest rate cut by the Federal Reserve may be only a couple of months away and 2) mounting fear of a broader war in the Middle East. Yesterday’s equity rally in the United States extended into Asia where share […] More
New Overnight Developments Abroad - Daily Update
The Home Stretch of 2023
December 27, 2023
The last week of this calendar year finds the dollar easing as it has done quite often at this time of year. The greenback dipped 0.2% against the euro overnight and is trading 1.6% below its mid-December level against that most influential of all dollar bilateral relationships. Other dollar dips overnight amount to 0.3% against […] More
Central Bank Watch
250-Basis Point Turkish Central Bank Rate Hike Matches Expectations
December 21, 2023
In Turkey where CPI and PPI inflation last month stood at 62.0% and 42.3%, the one-week repo rate was lifted after the December monthly review of monetary policy by an additional 250 basis points to 42.5%. The Central Bank of Turkey‘s benchmark rate had fallen from 19.0% to 8.5% between September 2021 and February of […] More
New Overnight Developments Abroad - Daily Update
More Central Bank Decisions and U.S. Stock Futures Rebound ahead of GDP Data Releases
December 21, 2023
After Wednesday’s big round of profit-taking in U.S. equities, stock futures show a rebound of about 0.5% in pre-open trading. A final estimate of U.S. GDP growth in 3Q will be released at 08:30 EST (13:30 GMT); the prior estimate showed a sizzling 5.2% quarter-on-quarter pace expressed at an annualized rate. In other stock market […] More
Central Bank Watch
Rate Cuts in Georgia and Hungary
December 20, 2023
The National Bank of Georgia‘s key interest rate was cut by 50 basis points to 9.5%. This was the fourth reduction since May, bringing the cumulative drop to 150 basis points. The peak rate of 11.0% had been maintained from March 2022 until May 2023. More reductions lie ahead. CPI inflation of merely 0.1% in […] More
New Overnight Developments Abroad - Daily Update
Watching for Central Bank Rate Cuts
December 20, 2023
Although the most closely watched central banks like the Fed, European Central Bank, Bank of England and Swiss National Bank have not yet begun to reduce interest rates, the list of monetary authorities that have done so continues to expand. Over the past 24 hours, benchmark interest rates were cut in Hungary, Colombia and Georgia. […] More
New Overnight Developments Abroad - Daily Update
Continuing Pivot Back Into Equities
December 19, 2023
Two themes are dominating financial markets today: 1) speculation that major central banks will cut interest rates next year sooner and by more than now signaled and 2) Chinese debt service strains. Share prices in Japan on Tuesday rose 1.4% in Japan after the Bank of Japan Board unanimously agreed not to change its ultra-loose […] More
New Overnight Developments Abroad - Daily Update
Slow Start to the Week Before Christmas
December 18, 2023
The weighted DXY dollar index held steady on balance overnight, climbing 0.4% against the yen and peso but dropping 0.2% relative to the euro and 0.4% versus the Swissie and Aussie dollar. Share prices closed down 1.0% in Hong Kong, 0.6% in Japan and 0.4% in China. The German Dax and Paris Cac are 0.3% […] More
