New Overnight Developments Abroad - Daily Update
Another Major Whiplash in Financial Markets After Latest Trump Zig-Zag
March 23, 2026
(147) Late today was to have been the deadline for a massive bombing operation of Iranian oil facility sites if Iran didn’t open up the Strait of Hormuz to normal shipping traffic. The ultimatum had been made two days ago, but with just hours left before the threatened operation, President Trump suddenly pushed the threatened […] More
Deeper Analysis
How Often Do U.S. Stock Market Corrections Evolve into Bear Markets?
March 20, 2026
With key U.S. stock market indices fast approaching correction status, I asked Google AI Overview how often previous corrections of the S&P 500 (defined as a cumulative high-to-low movement of at least 10%) have evolved into a bear market, where the requirement is a decline of 20% or more. I learned that Corrections are actually […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: March 21-27, 2026
March 20, 2026
Central Banks: Far fewer monetary policy reviews are scheduled next week than this one. Meetings in the coming period are planned in Mexico, South Africa, Norway, Hungary and Chile. The growing speculation today that 2026 will see a number of central banks switch direction and actually raise rate will probably persist next week, especially with […] More
Central Bank Watch
A Seventh Central Bank Interest Rate Cut in Russia
March 20, 2026
The other central bank rate decision today involved an as-expected 50-basis point cut in the Central Bank of Russia‘s benchmark to 15.0%, its lowest level since December 2023. From a peak of 21% reached in October 2024 and maintained until June 2025, seven reductions totaling six percentage points have now been made. Russian consumer price […] More
New Overnight Developments Abroad - Daily Update
Dollar Mixed, Equities Down, Bond Yields Higher, and Mood Remains Fearful
March 20, 2026
In overnight trading, the dollar rose 0.6% against the Japanese yen and 0.8% versus the South Korean won but slipped 0.3% relative to the Canadian dollar and 0.1% against the Swissy, euro and sterling. A five-basis point advance in the ten-year U.S. Treasury yield exceeds rises of three basis points in comparable sovereign debt yields […] More
New Overnight Developments Abroad - Daily Update
Middle East Takes a Turn for the Worse, Forcing Monetary Authorities Around the World to Wait and See
March 19, 2026
The Strait of Hormuz remains essentially closed to shipping traffic, and Israel and Iran have escalated the race to destroy Middle Eastern energy facilities as thoroughly as possible. Brent crude briefly hit $119 per barrel, and West Texas Intermediate continues to hover a bit above $97. The escalating conflict has ripped up the script on […] More
Central Bank Watch
Observations from Fed Statement, Forecasts and Press Conference
March 18, 2026
The press release reads very much like the one seven weeks earlier. Again and as was very widely expected, the federal funds rate was left unchanged at 3.50-3.75%. The insertion of a new sentence in paragraph two stating “the implications of developments in the Middle East for the U.S. economy are uncertain” merely states the […] More
Central Bank Watch
Canadian Overnight Interest Rate Left Unchanged at 2.25% as Was Expected
March 18, 2026
Few countries have been caught in maelstrom of the Trump administration’s policy upheavals as much as Canada. The two countries share the world’s longest border and enjoy the largest bilateral trading relationship as well. From an historically cordial relationship, the two governments have soured immensely on one another. Trump’s massive changes and their unpredictability represent […] More
Central Bank Watch
FOMC Preview
March 18, 2026
The Federal Reserve is not expected to change its policy interest rate at this second scheduled review of 2026 and the next to last one that will be chaired by Jerome Powell. Some dissenting votes seem likely, and the risk of dissent is not entirely one sided because U.S. growth is slowing while inflation risks […] More
Central Bank Watch
Icelandic Interest Rate Hike
March 18, 2026
Policymakers at the Central Bank of Iceland today followed Australia’s lead yesterday, raising the Icelandic 7-day term rate by 25 basis points in a 3-2 decision that included two dissents favoring an increase of 50 basis points. It was the bank’s first rate increase since August 2023, and the new rate level becomes 7.5%, which […] More
