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Central Bank Watch

Bank of Japan: Same Ol, Same Ol

September 22, 2021

The Bank of Japan Board wrapped up its two-day policy review and decided by an 8-1 vote not to change its settings with Kataoka once again dissenting in favor of greater stimulus. The current policy framework anchored around a -0.1% short-term interest rate target, considerable quantitative stimulus, and a 10-year JGB yield objective of “around […] More

New Overnight Developments Abroad - Daily Update

Marking Time Ahead of Powell Press Conference

September 22, 2021

The FOMC is expected to confirm that tapering of its bond purchase program will begin in the fourth quarter. The announcement by the Fed and release of updated economic forecasts will be made at 14:00 EDT (18:00 GMT), followed by Chairman Powell’s press conference at 14:30. Earlier today, the Bank of Japan Board wrapped up […] More

New Overnight Developments Abroad - Daily Update

Equities Trying to Rebound and Dollar Slips a Bit Ahead of Wednesday’s FOMC Announcement

September 21, 2021

The dollar is down 0.15% against the DXY weighted index. Dollar/yen is unchanged from Monday’s closing level, and the greenback lost 0.1% overnight against the euro and sterling and 0.4% relative to the loonie and Swiss franc. U.S. stocks had suffered their steepest daily loss on Monday since May, and share prices in other markets […] More

New Overnight Developments Abroad - Daily Update

Financial Market Sell-Off

September 20, 2021

Investors are worrying the Congress will this time fail to raise the debt ceiling, whose limit will be reached during October. Many earlier games of chicken over raising the debt ceiling have always been averted, but political divisiveness has never been so raw since the convention of debt ceilings were adopted. The consequence of not […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: September 18 – 24, 2021

September 17, 2021

Central Banks: Monetary policies will be reviewed in the United States, Japan, U.K., South Africa, taiwan, China, Switzerland, Indonesia, Sweden, Hungary, Norway, Turkey and the Philippines. Fed Chairman Powell, BOJ Governor Kuroda, RBA Assistant Governor Bullock, and Governor Bailey and MPC member Tenreyro of the Bank of England are some of the central bankers who […] More

New Overnight Developments Abroad - Daily Update

Markets Looking Ahead to Next Week’s Central Bank Policy Meetings

September 17, 2021

The Federal Reserve heads a long list of central banks reviewing monetary policy next week. Among the others on tap are central banks in Japan, Turkey, the U.K., Switzerland, Sweden, Indonesia, Brazil, China, South Africa, Taiwan, Norway and the Philippines. Investors hope to get more clarification on when Fed will begin tapering bond purchases and […] More

New Overnight Developments Abroad - Daily Update

Strengthening Dollar

September 16, 2021

Broadly-based overnight appreciations of the dollar include gains of 0.7% against the Swiss franc and Turkish lira, 0.5% versus the euro, kiwi, and sterling, 0.4% relative to the yen and Australian dollar, and 0.2% vis-a-vis the Canadian dollar and Mexican peso. The DXY weighted dollar index advanced 0.4% and is just 1.9% below its 52-week […] More

New Overnight Developments Abroad - Daily Update

Meaningful Data Released Today in China, U.S., U.K., Japan and Euroland

September 15, 2021

The dollar fell overnight by 0.2% against the DXY weighted index and sterling, 0.4% versus the Japanese yen, and 0.1% relative to the euro and Swiss franc. Ten-year sovereign debt yields rose two basis points each in the United States, Germany and Great Britain but slipped a basis point in Japan. Equity markets mostly dropped […] More

New Overnight Developments Abroad - Daily Update

Good, Bad and Ugly

September 14, 2021

Start with the ugly. New Covid cases in the United States spiked to more than 172.4k yesterday, and deaths topped 1800. Even as almost half the whole population remains unvaccinated, there is confusion over who is eligible for boosters and when children under age 12 will be allowed to get vaccinated. As Covid goes, so […] More

New Overnight Developments Abroad - Daily Update

Equities and Dollar Rise after Difficult Week

September 13, 2021

Equity markets in Europe have strengthened slightly more than 1.0% in Italy and Spain and by 0.7-0.9% in Germany, France and Great Britain. U.S. stock futures are up around 0.6%, but markets earlier in the Pacific Rim had given no warning as what was to come with Hong Kong’s Hang Seng index faltering 1.5% and […] More

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