New Overnight Developments Abroad - Daily Update
Softer Dollar/Stronger Equities
October 19, 2021
The dollar fell against most currencies overnight including drops of 0.4% against the euro and weighted DXY index. The dollar also lost 0.7% relative to sterling and 0.8% versus the Aussie dollar but just 0.2% against the Japanese yen. The 10-year Treasury yield is a basis point lower, while its German and Japanese counterparts are […] More
New Overnight Developments Abroad - Daily Update
Investors React to Global Inflation and Slower Growth in China
October 18, 2021
The third week of October commenced with sharply higher long-term interest rates, a strengthening dollar, and a setback in equities. The rising price of West Texas Intermediate crude oil touched its highest level in the past 52 weeks and is currently showing a 1.6% advance from Friday’s closing level. Bitcoins cost over $60,000 and are […] More
New Overnight Developments Abroad - Daily Update
Dollar Unchanged Overnight but Down Slightly for the Week
October 15, 2021
The DXY weighted dollar index is 0.2% softer than a week ago, setting the stage for its first weekly decline in six weeks. Overnight movements have been diverse, with a 0.6% slide against sterling but a 0.6% rise against the yen, touched a multiyear high of 114.4 earlier today. The dollar slipped 0.3% against the […] More
Foreign Exchange Insights and Next Week
Next Week’s Menu: October 16 – 22, 2021
October 14, 2021
Central Banks: Monetary policy reviews are scheduled next week in Indonesia, Turkey, Ukraine, Hungary, and Russia. Also, the People’s Bank of China will set its loan prime rates for the coming month, and the Federal Reserve Beige Book and minutes of the last Reserve Bank of Australia policy meeting will be published. RBA Governor Lowe […] More
Central Bank Watch
Monetary Authority of Singapore Tightens Stance
October 14, 2021
Today, the Monetary Authority of Singapore, which targets the exchange rate rather than an interest rate and which reviews its stance only semi-annually, surprised analysts by raising the slope of the S-dollar’s allowed trading band. The band had been lowered in April 2020 as Covid hit to a slope of zero percent. Officials did not […] More
Bank of Chile
Central Bank of Chile
October 14, 2021
More central banks have reacted to the rise in inflationary risks. Late Wednesday came news from the Central Bank of Chile of a unanimously agreed greater-than-projected 125-basis point high in its policy interest rate. This move was the third recent hike following increases of 25 basis points in July and 75 bps at the end […] More
New Overnight Developments Abroad - Daily Update
Optimism Bumps Up that Recovery Can Withstand Covid, Higher Inflation, and Central Bank Tightening
October 14, 2021
Equities have experienced a better session, with higher closes in Asia of 1.5% in Japan and South Korea and 1.4% in Indonesia. Hong Kong was closed for the Chung Yeung festival. The German Dax, Paris Cac and British Ftse are respectively up 0.9%, 1.0% and 0.7%, and U.S. futures point to similar gains. The move […] More
New Overnight Developments Abroad - Daily Update
Many Data Already Reported… Now Waiting for U.S. CPI and FOMC Minutes
October 13, 2021
The dollar slipped overnight by 0.3% against the Swiss franc and sterling, 0.2% versus the euro, peso and on a DXY weighted basis, and 0.1% relative to the Canadian dollar, Chinese yuan, and Turkish lira. Ten-year sovereign debt yields have dropped four basis points in Germany and five bps in the U.K. but only a […] More
New Overnight Developments Abroad - Daily Update
Data Mix of Elevated Inflation Despite Moderating Growth
October 12, 2021
Today’s menu of price data around the world revealed The highest rate of Japanese domestic producer price inflation (6.3%) since September 2008 and also a larger 31.3% year-on-year leap in import prices. The steepest on-year jump in German wholesale prices (13.2%) since June 1974. As then, energy played a prominent role in the spike. The […] More
New Overnight Developments Abroad - Daily Update
Big Jump in Fossil Fuel Prices Marks U.S. Holiday
October 11, 2021
Financial market depth today will be diminished by holidays in Canada (Thanksgiving) and the United States (formerly known as Columbus Day but renamed Indigenous Peoples’ Day in many states). Inflationary concerns around the world are being inflamed by a 3.3% overnight additional leap in the price of WTI oil to around $82/barrel. That price hadn’t […] More
