Foreign Exchange Insights and Next Week
Next Week’s Menu: December 21-28, 2024
December 20, 2024
Central Banks: Interest rate policy reviews are scheduled in Turkey and Egypt, and minutes from previous central bank policy meetings in Australia, Japan and Canada will be published. Holidays and Special Events: The distraction of end-of-year holidays to business and financial market activity is arguably maximized when Christmas and New Years Day fall upon a […] More
Central Bank Watch
Mexican Central Bank Rate Cut
December 20, 2024
The Bank of Mexico’s policy interest rate has been reduced by another 25 basis points to 10.0%. This was the fourth such cut since August and the fifth one since March. The rate had been at a peak of 11.25% for a year prior to that initial easing. The latest cut was made in reaction […] More
New Overnight Developments Abroad - Daily Update
A Few More Central Bank Decisions, A Lot More Price Data, and A Possible U.S. Government Shutdown Is Looking More Likely
December 20, 2024
The U.S. dollar fell overnight by 0.4% against the Japanese yen, Swiss franc, and British pound. Smaller dips of 0.2% and 0.1% happened versus the euro and Canadian dollar, while bigger slides occurred against the Mexican peso of 0.8% and Brazilian Real of 2.2%. The Bank of Mexico’s policy interest rate has been reduced by another […] More
Central Bank Watch
Filipino Rate Cut
December 19, 2024
As analysts were expecting, a 25-basis point interest rate cut was announced today at the Central Bank of the Philippines. At 5.75%, the new rate will be its lowest in 22 months and down from 6.50% maintained from October 2023 until an initial cut in August 2024. Inflation is projected to stay under the 2-4% […] More
Central Bank Watch
Swedish Riksbank Interest Rate Cut Gets Closer to Cycle’s End
December 19, 2024
The Swedish Riksbank has been administering a cycle of interest rate reduction since May 2024, which including today’s 25-basis point cut to 2.50% brings the cumulative relief to 150 basis points. Swedish CPI inflation has been under the 2.0% target for four straight months including 1.6% in November, which represents a 40-month low and drop […] More
New Overnight Developments Abroad - Daily Update
Many More Central Banks Announce Interest Rate Decisions, Third-Quarter U.S. GDP Gets Revised Higher, And A Possible U.S. Government Shutdown Looms
December 19, 2024
World financial markets reacted sharply and immediately to yesterday’s shift in Fed forward rate guidance that now suggests only two rate cuts, not four, during 2025. Then in overnight market action, U.S. stock futures recovered about 0.7%. Share prices in the Pacific Rim 1.0% or more in South Korea, Indonesia, Taiwan, New Zealand, and India […] More
Central Bank Watch
FOMC Statement and Powell’s Press Conference
December 18, 2024
The FOMC statement announces the Fed’s third rate cut since September, a drop of 25 basis points, matching the market consensus and bring the total decline from peak to a full percentage point. The new federal funds range is 4.25-4.50%. In a 10-1 vote, Cleveland District President Beth Hammack preferred keeping the range at 4.50-4.75%. […] More
Central Bank Watch
FOMC Preview
December 18, 2024
The Federal Open Market Committee last met right after the U.S. election that is returning Donald Trump to the White House with a majority in both houses of Congress and the Supreme Court and with a revolutionary policy agenda that among other things may lift inflation near term. At the November press conference after a […] More
New Overnight Developments Abroad - Daily Update
A U.S. Current Account Stunner Prior to the FOMC Announcement
December 18, 2024
The last FOMC announcement of 2024 arrives this afternoon. A 25-basis point interest rate cut is still expected, but a strong sense of suspense surrounds what is said about likely policy next year and the unveiling of updated forecasts from America’s central bank. While investors await the Federal Reserve’s show, the Commerce Department released third-quarter […] More
New Overnight Developments Abroad - Daily Update
Stocks Down, Dollar Up as Two-Day FOMC Meeting Kicks Off
December 17, 2024
The dollar is 0.4% firmer against the Australian and New Zealand dollars and up 0.3% versus the Canadian dollar. Only 0.1% upticks have been made against the euro, Swiss franc and sterling, and the greenback is 0.3% softer relative to the yen. Major U.S. equity indices are 0.4-0.5% softer following lower share price closings in […] More
