Foreign Exchange Insights and Next Week
Next Week’s Menu: June 8-14, 2024
June 7, 2024
Central Banks: An FOMC meeting with updated U.S. macroeconomic forecasts and followed by Chairman Powell’s press conference heads up a menu of scheduled monetary policy reviews that also includes central banks in Japan, Taiwan, Thailand, Armenia, Pakistan, Serbia and Peru. Williams and Goolsbee of the Federal Reserve, as well as former Chairperson and current U.S. […] More
Deeper Analysis
Tight Labor Market Likely to Delay Fed Rate Cut Further
June 7, 2024
The 272 thousand increase last month in U.S. non-farm payroll employment exceeded market expectations by nearly 50% and comes on top of 238k per month job growth in the prior two months. Job growth per se needed delay a rate cut, but today’s report also included a 0.2 percentage point decline in labor market participation […] More
Central Bank Watch
Bank of Russia Gearing Up for Possible Further Rate Hike
June 7, 2024
The Bank of Russia, where officials left the interest rate benchmark today unchanged at 16.0% and delivered the following warning after today’s policy review: Growth in domestic demand is still outstripping the capabilities to expand the supply of goods and services. The Bank of Russia holds open the prospect of increasing the key rate at its upcoming meeting. Furthermore, returning inflation to the target will require a significantly longer period of maintaining tight monetary […] More
New Overnight Developments Abroad - Daily Update
Monetary Policy Announcements from India and Russia and Awaiting U.S. Jobs Report
June 7, 2024
The dollar marked time overnight and is currently unchanged against the euro and Swissy, down 0.1% relative to sterling and the yen but up 0.1% vis-a-vis the Canadian and Australian dollars. The Mexican peso extended yesterday’s rebound. U.S. stock futures are steady. Overseas, share prices closed down 1.0% in New Zealand, 1.1% in Indonesia, 0.6% […] More
