Foreign Exchange Insights and Next Week
February 2025 in Figures
February 28, 2025
Aside from a 3% drop against the Japanese yen and a slightly greater than 1% rise versus the Chinese yuan, net dollar movements in February were extremely trivial. Evidence emerged in the month than not only has U.S. disinflation progressed more slowly than hoped but also confidence in future U.S. growth has been shaken by […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: March 1-7, 2025
February 28, 2025
Central Banks: Interest rate policies will be reviewed in Malaysia, Turkey and at the European Central Bank. ECB President Lagarde will hold a press conference, and the bank’s macro forecasts will be updated. Goolsbee, Williams, Barker and Bostic are some of the Fed officials speaking publicly during the period. The Beige Book of U.S. regional […] More
New Overnight Developments Abroad - Daily Update
U.S. Trade Deficit Surprise
February 28, 2025
Financial markets around the world had been looking ahead all this week to today’s U.S. January report of personal income, consumption and PCE price deflator, which is the Federal Reserve’s favorite inflation measure. As things turned out, the price index arrived pretty much as investors had been expecting. The overall PCE deflator’s 12-month rate of […] More
New Overnight Developments Abroad - Daily Update
Stagflationary Concerns
February 27, 2025
The investment community remains concerned that President Trump’s revolutionary policy agenda, which is proceeding at Blitzkrieg speed, will introduce upside inflationary risks and downside growth risks. The concerns are limited to the U.S. economy. Europe is likely to fair even worse and possibly Asia, too. The disparate possibilities are reflected in today’s market action. The […] More
New Overnight Developments Abroad - Daily Update
Better Tone in World Equity Markets
February 26, 2025
Equity markets in the Pacific Rim rallied 3.3% in Hong Kong, 1.2% in New Zealand and 1.0% in China. Stock markets in the euro area’s four biggest economies so far today are showing net gains of at least 1.0%, while U.S. stock futures and the British FTSE have risen around 0.5%. Some of the relief […] More
Central Bank Watch
A Third South Korean Central Bank Rate Cut
February 25, 2025
South Korea’s Base Rate peak of 3.5% had been maintained from January 2023 until an initial cut last October. That incremental reduction of 25 basis points was followed by another in November but not changed at this year’s first Bank of Korea policy review. But easing resumed today via a cut to 2.75% from 3.0%. […] More
New Overnight Developments Abroad - Daily Update
Unease about the Future
February 25, 2025
Equities this Tuesday did poorly in the Pacific Rim, closing down 2.4% in Indonesia, 1.8% in New Zealand, 1.4% in Japan, 1.3% in Hong Kong, 1.2% in Taiwan, 0.8% in China and 0.6% in South Korea. Digital money experienced a stellar 2024 but now two months into 2025 is fast approaching what constitutes as a […] More
New Overnight Developments Abroad - Daily Update
Worst Case German Election Result Averted
February 24, 2025
(203) The German DAX index rallied 0.9% so far on a day that saw many Pacific Rim stock markets falter, including declines of 1.8% in New Zealand, 1.1% in India, 0.7% in Taiwan, 0.6% in Indonesia and Hong Kong, 0.2% in China. U.S. stock futures are somewhat higher but in recent days have failed to […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: February 22-28, 2025
February 21, 2025
Central Banks: Interest rate settings will be reviewed at central banks in Kyrgyzstan, Israel, South Korea, Hungary and Thailand. Minutes from the last European Central Bank Governing Council meeting will be published. Pill and Dhingra of the Bank of England and Hammack, Bostic, and Harker of the Federal Reserve speak publicly. Special Event: German parliamentary […] More
New Overnight Developments Abroad - Daily Update
Trump and Ueda Comments and Early February PMI Findings
February 21, 2025
After weeks of confrontational trade talk and action, President Trump switched to a good cop approach on trade with China, expressing eagerness to hold talks soon with Xi Jinping and hope that a deal can be struck to lessen tensions over trade and other stuff. Following data showing an acceleration in Japanese inflation, Bank of […] More
