New Overnight Developments Abroad - Daily Update
Dollar and Equities Back Off from Wednesday Highs
February 20, 2025
The U.S. dollar fell overnight by 0.9% against the Japanese yen and by 0.4% versus the Mexican peso and both New Zealand and Australian currencies. Smaller losses occurred of 0.2% occurred against the Swiss franc, sterling, South Korean won, Turkish lira and DXY weighted index and of 0.1% relative to the euro and Canadian dollar. […] More
Central Bank Watch
New Zealand Interest Rate Cut
February 19, 2025
The Reserve Bank of New Zealand cut the Official Cash Rate by 50 basis points as had been expected. This was the third cut of a half percentage point that followed an initial 25-basis point reduction last August. At 3.75%, the new rate level is its lowest since November 2022 and down from 5.50% maintained […] More
New Overnight Developments Abroad - Daily Update
Dollar Marginally Higher
February 19, 2025
No matter what else might be scheduled or happening, U.S. President Trump’s persistent sound and fury is managing to get top billing on a daily basis, not just in America but around the world. Everything else, even an atypical spree of airplane accidents, has been smothered by Trump news and become secondary. In overnight trading, […] More
Central Bank Watch
Australian Interest Rate Cut
February 18, 2025
The Reserve Bank of Australia’s Official Cash Rate has been cut by 25 basis points to 4.1% after being held at a peak of 4.35% since November 2023. The reduction size met analyst expectations but was accompanied by a statement with loads of cautionary rhetoric and assertions that a restrictive stance is still needed. The […] More
New Overnight Developments Abroad - Daily Update
Perverse Reaction of Australian Financials After First RBA Rate Cut Since November 2020
February 18, 2025
The Reserve Bank of Australia’s Official Cash Rate has been cut by 25 basis points to 4.1% after being held at a peak of 4.35% since November 2023. The reduction size met analyst expectations but was accompanied by a statement with loads of cautionary rhetoric and assertions that a restrictive stance is still needed. In […] More
New Overnight Developments Abroad - Daily Update
European Leaders Huddling About Ukraine, Japanese GDP Exceeds Expectations, and U.S. & Canada Observing Holidays
February 17, 2025
(204) Today is Presidents Day in the United States and Family Day in Canada. These holiday observances will make for a shortened day in global financial markets and are apt to sap them of leadership. European leaders have been invited to Paris to discuss policy regarding the Ukraine war and the wider issue of regional […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: February 15-21, 2025
February 14, 2025
Central Banks: Interest rate policies will be reviewed next week by the Reserve Bank of New Zealand, Reserve Bank of Australia (RBA), People’s Bank of China and Bank Indonesia. Policy board meeting minutes will be published by both the Federal Reserve and European Central Bank, and the RBA’s quarterly Monetary Policy Statement arrives, too. Some […] More
New Overnight Developments Abroad - Daily Update
U.S. Consumers Pausing for Clarification on Policies and Direction of Inflation
February 14, 2025
The dollar’s recent step backward was extended this Friday. The weighted DXY dollar index fell 0.4% overnight and has retreated 2.0% in the three weeks since President Trump’s inauguration. The dollar dropped 0.6% overnight against the New Zealand dollar, 0.5% versus the Mexican peso, 0.4% against the Australian dollar, 0.3% vis-a-vis sterling, and 0.2% against […] More
New Overnight Developments Abroad - Daily Update
Awaiting Reciprocal Tariff Details and U.S. Producer Price Data
February 13, 2025
America’s second inflation shoe this week, the January PPI report, is due within the half hour. President Trump has also promised an announcement today on “reciprocal tariffs,” conceivably the biggest round of levies thus far, and he will be meeting today with Indian Prime Minister Modi. A phone call earlier this week with Russian President […] More
New Overnight Developments Abroad - Daily Update
Weaker Yen But Investor Attention Shifting to U.S. CPI Data Release Later This Morning
February 12, 2025
Bank of Japan Governor Ueda’s failure to use testimony before the Diet to pinpoint possible timing of next central bank interest rate hike sent the yen sliding 0.6% overnight against the dollar and by even more versus other currencies. Against other currencies, the dollar lost 0.3% versus the Swiss franc, 0.2% vis-a-vis the euro and […] More
