Foreign Exchange Insights and Next Week
Next Week’s Menu: June 29-July 5, 2024
June 28, 2024
Central Banks: Policy meeting is scheduled at the National Bank of Romania. Minutes will be published of prior policy meetings at the Federal Reserve, European Central Bank and Reserve Bank of Australia. The Bank of Japan’s quarterly Tankan survey of corporate perceptions and expectations will be released. Special Events and Holidays: The week ahead is […] More
Central Bank Watch
50-Basis Point Czech Interest Rate Cut’s Size Exceeded Street Consensus
June 27, 2024
Many forecasters were expecting the Czech two-week repo rate to be reduced by only 25 basis points. The koruna has depreciated like many other currencies against the dollar, and expectations about future Fed easing have been scaled back. The surprise 50-basis point cut was the fourth this year of that size and brings the decline […] More
New Overnight Developments Abroad - Daily Update
Debate Night and So Much More
June 27, 2024
Tonight’s first of two scheduled prime-time debates between Joe Biden and Donald Trump has financial market participants on edge. So do upcoming releases of U.S. GDP, personal consumption, and and the PCE price deflator as well as French parliamentary elections this weekend. Japanese Finance Minister Suzuki protested the yen’s further drop to 160.8 per dollar, […] More
New Overnight Developments Abroad - Daily Update
Japanese Yen Retreats to 34-Year Low of 160.4 Per Dollar
June 26, 2024
The dollar continued to experience broad support this Wednesday on fading prospects that the federal funds rate target of 5.25-5.50% will be lowered soon. Federal Reserve Governor Bowman is the latest monetary official to call a rate cut now inappropriate, and she gave personal support to hiking the rate should a timely return to target […] More
Central Bank Watch
State Bank of Morocco Begins Interest Rate Down-Cycle
June 25, 2024
Morocco’s central bank interest rate has been cut by 25 basis points to 2.75%. Such had been kept at 3.0% for the previous 15 months, double its mid-2020 to September 2022 level. Consumer price inflation crested early in 2023 at 10.1% overall and 8.3% among non-volatile core items and showed considerably lower readings last month […] More
Uncategorized
Aside from a Drop in European Share Prices, Financial Markets in a Wait-and-See Mode
June 25, 2024
There been no net movement in the dollar overnight against the Swiss franc, sterling or Canadian, Australian and New Zealand currencies. The yen managed to stay just barely on the strong side of the 160 per dollar, and Bitcoin likewise recouped 1.5% rather than fall below the key $60,000 dollar threshold. Stock markets in Japan […] More
New Overnight Developments Abroad - Daily Update
Final Week of 2024 First Half Finding Crypto and Yen Struggling to Stay Above Important Levels
June 24, 2024
The price of Bitcoin tokens plunged 3.5% overnight to a two-month low and within $860 of the psychological support of $60,000. The Japanese yen touched a low of 159.81 per dollar. Japanese intervention sales of foreign currency this month has slowed the Japanese currency’s descent but not reversed the weak trend that stems from the […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: June 22-28, 2024
June 21, 2024
Central Banks: Interest rate policy reviews are scheduled in Sweden, the Czech Republic, Mexico, Turkey, Morocco and the Philippines. Daly, Cook, Bowman and Barkin of the Fed have speaking engagements, as do Hauser and Kent of the Reserve Bank of Australia, Schnabel of the European Central Bank, Bank of Canada Governor Macklem, and Bank of […] More
New Overnight Developments Abroad - Daily Update
Nascent European Recovery Suffered a Setback in June
June 21, 2024
Euroland’s composite purchasing managers index dropped 1.3 points to 50.8 this month, according to preliminary findings. This 3-month low defied market expectations of a further advance above the 50 neutral level, having previously risen from 46.5 last October to 52.1 in May. A deceleration in demand strength suggests June’s drop is unlikely to be a […] More
Central Bank Watch
Bank of England’s No Change Decision Today More Finely Balanced Than 7-2 Vote Suggests
June 20, 2024
News came yesterday that British CPI inflation had fallen to a 34-month low and target-matching 2.0%. The Bank of England’s 7-2 vote in favor of maintaining a 5.25% base rate drew dissents from the same two policymakers who wanted a 25-basis point initial reduction at the prior policy review. However, within the majority, which preferred […] More
