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Foreign Exchange Insights and Next Week

Next Week’s Menu: July 24 -30, 2021

July 23, 2021

Central Banks: There is a two-day FOMC meeting with Powell’s press conference to follow Wednesday. Policy meetings are also scheduled in Colombia and Hungary, and the Bank of Japan will publish a summary of its most recent policy review. U.S. Statistical Releases Next Week: Quarterly GDP and employment cost index. Monthly personal income, spending & […] More

Central Bank Watch

Central Bank of Russia Hikes Interest Rate Further

July 23, 2021

The Central Bank of Russia’s policy interest rates was raised today for a full percentage point to 6.5%, which more than reversed last year’s entire easing from 6.25% to 4.25%. Along with increases of 25 basis points in March, 50 bps in April, 75 bps in May and 50 bps in June, the Russian central […] More

New Overnight Developments Abroad - Daily Update

Covid Alive and Well and Exerting Varied Influence

July 23, 2021

July preliminary purchasing manager survey results reported today for the euro area, U.K., Australia and United States confirm continuing robust economic activity but weaker business confidence due to elevated inflation, supply-side constraints in labor and materials, and not least the highly infectious Delta Variant of Covid-19. The number of globally identified coronavirus cases keeps grinding […] More

Central Bank Watch

Ukraine’s Third Interest Rate Hike of 2021

July 22, 2021

The National Bank of Ukraine delivered a surprise, lifting its policy interest rate by another 50 basis points. There had been earlier increases this year of 50 basis points in March and 100 basis points in April. In contrast, four big reductions in 2020 had reduced the rate from 12.5% to 6.0%. Core inflation has […] More

Central Bank Watch

ECB Changes Forward Policy Guidance

July 22, 2021

At today’s scheduled European Central Bank Governing Council meeting, news was made even though the interest rate structure (a zero percent refinancing rate of zero percent since September 2 the quantitative stimulus. A change in expressed guidance over what to expect from the bank’s policy in the future, officials now say that interest rates will […] More

New Overnight Developments Abroad - Daily Update

Some Central Bank Developments and a Displeasing U.S. Labor Market Development

July 22, 2021

New U.S. jobless insurance claims last week totaled 419K, 51k greater than in the prior week, roughly 70k above street expectations, and the most in nine weeks. The news dampened the stock market euphoria of recent sessions. The dollar is little changed from its closing Wednesday levels, with dips of 0.1% against the euro, yen […] More

New Overnight Developments Abroad - Daily Update

Risk Aversion Subsiding for Second Straight Day

July 21, 2021

U.S. share prices have risen somewhat more than 0.5% this Wednesday after Yesterday’s strong resurgence. European stock markets have recorded even sharper gains of 1.7% in the U.K., 1.9% in France, 1.4% in Germany and 2.7% in Spain. Second-quarter corporate earnings reports are dominating financial market sentiment. The dollar is currently trading around today’s lows […] More

New Overnight Developments Abroad - Daily Update

Dollar Up and Equities Depressed by Worries Over Resurgence of Covid and Inflation

July 19, 2021

Friday’s equity market stumble extended into the new week, with losses Monday amounting to 1.8% in Hong, 1.4% in India, 1.3% in Japan and Singapore and 0.9% in Australia. In European tradeing, share prices so far today are down 3.5% in Greece, 3.0% in Italy, 2.1% in Germany and France, 2.0% in the U.K., and […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: July 17 – 23, 2021

July 16, 2021

Central Banks: Monetary policies will be reviewed by the European Central Bank and central banks in Indonesia, Russia, South Africa, China, and Ukraine. Prior meeting minutes will be published by the Reserve Bank of Australia and Bank of Japan. Bank of England MPC member Haskel will be speaking publicly. Event and Holidays: EU finance ministers […] More

Central Bank Watch

Bank of Japan Policy Review

July 16, 2021

The Bank of Japan’s policy settings will remain at -0.1% on the short-term interest rate, around zero percent on the 10-year JGB yield to be maintained by purchasing “a necessary amount of Japanese government bonds (JGBs) without setting an upper limit.” Policy Board member Kataoka dissented in favor of augmenting policy stimulus, as he has […] More

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