Central Bank Watch
Interest Rate Hikes in Indonesia, the Philippines and Czech Republic but a Cut in Brazil
June 18, 2026
Bank Indonesia’s 25-basis point rate hike to 5.75% followed an unscheduled review just eight days earlier and an initial tightening done in May. The haste implied by this sequence of increases totaling a full percentage point has been motivated by inflation of 3.1% that exceeds the 2.5% target mid-point but even more so by the […] More
New Overnight Developments Abroad - Daily Update
Trump Eating Crow After Getting Less Than He Wanted from Iran War and the Federal Reserve
June 18, 2026
President Trump signed a memo of understanding with Iran to end the war with Iran, reopen the Strait of Hormuz and allow for a period of 60 days to address Iran’s nuclear program and hammer out remaining disagreements. While this signing is viewed as an important step toward reestablishing the supply of energy and other […] More
Central Bank Watch
FOMC Preview
June 17, 2026
From a peak of 5.25-5.50%, the federal funds target was lowered in two waves that occurred at the final three scheduled monetary policy reviews of 2024 and 2025. The first wave amounted to a drop of 100 basis points to 4.25-4.50%, while each of the three cuts late last year had a size of 25 […] More
New Overnight Developments Abroad - Daily Update
Investor Attention Focused on Today’s FOMC Decision, Updated Forecasts and Chairman Kevin Warsh’s Maiden Press Conference
June 17, 2026
World financial markets not surprisingly marked time overnight. There has been a disconnection between, on the one hand, a euphoric investment community reaction on Monday and Tuesday to Sunday’s news of an interim deal between Iran and the United States that is supposed to get signed Friday in Geneva and the parade of foreign policy […] More
Central Bank Watch
Bank of Japan Lifts Short-Term Interest Rate in Expected Move
June 16, 2026
The Bank of Japan Board’s 25-basis point interest rate hike had been anticipated. Governor Ueda was absent from the five hour nine minute monetary policy review over two days because he’s been hospitalized for an infected liver cyst. Deputy Governor Himino chaired the discussion, which ended with one dissent against the hike that was cast […] More
New Overnight Developments Abroad - Daily Update
Post-Deal Optimism Holding
June 16, 2026
Much still remains unknown regarding the future evolution of U.S.-Iran talks, but yesterday’s rally in equities and decline of long-term interest rates following the announced interim deal has persisted. Stock markets this Tuesday rose 4.1% in Indonesia, 2.1% in South Korea, 0.9% in Taiwan but just 0.1% in Japan where Bank of Japan officials hiked […] More
New Overnight Developments Abroad - Daily Update
Markets Respond Favorably to News of U.S.-Iranian Deal Despite Interim Nature and Unaddressed Issues
June 15, 2026
(135) The reported truce, which is to be signed Friday in Switzeraland, primarily addresses the mutually imposed impediments to shipping traffic through the Strait of Hormuz. Typically, President Trump has made assertions that Iran has not confirmed such as the water passageway remaining toll-free. The deal defers agreement on the whole justification for the U.S.-initiated […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: June 13-19, 2026
June 12, 2026
Central Banks: A slew of monetary authorities will be reviewing monetary policies next week, including those in the United States, Great Britain, Japan, Sweden, Norway, Taiwan, Russia, Ukraine, Pakistan, Brazil, Indonesia, the Czech Republic, Switzerland, Moldova, and the Philippines. It will be the first FOMC meeting not chaired by Jerome Powell in eight year. That […] More
New Overnight Developments Abroad - Daily Update
Trump Remark Elevates Peace Deal Hopes Further
June 12, 2026
Not for the first time in the last three months, President Trump has claimed that deal negotiations have made great progress, enough so to call off fresh military strikes against Iran. The multi-point plan reportedly would remove both Iranian and U.S. impediments against shipping traffic through the Strait of Hormuz, unfreeze Iranian financial assets, and […] More
Central Bank Watch
ECB Rate Hike – the First Since 2023 but Widely Anticipated by Markets
June 11, 2026
The European Central Bank’s trio of key rates were lifted by an as-expected 25 basis points to a 2.25% deposit rate, a 2.40% refinancing rate, and 2.65% on the marginal lending facility rate. A statement announcing these changes explains The war in the Middle East is generating inflation pressures, and the decision to raise rates […] More
