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Central Bank Watch

FOMC Preview

September 21, 2022

In the race of central bankers around the world to get ahead of the inflation-reduction curve, the Federal Reserve had been neither the least aggressive nor most aggressive monetary institution in shifting from a very accommodative stance to one that goes beyond mere neutrality to eventual restraint. Quantitative stimulus has given way to a program […] More

New Overnight Developments Abroad - Daily Update

FOMC Meeting and Putin’s Reservist Mobilization Overhang an Edgy Day

September 21, 2022

The FOMC announcement at 14:00 EDT will be accompanied by updated macroeconomic forecasts and followed by Chairman Powell’s press conference starting at 14:30 (18:30 GMT). Officials are expected to raise the federal funds target by 75 basis points, bringing the increase since June to 225 bps and establishing the highest target level (3.0-3.25%) since a […] More

Central Bank Watch

Swedish Interest Rate Hike Surpasses Expectations

September 20, 2022

Officials at the Swedish Riksbank today exceeded street expectations with a policy interest rate hike of a full percentage point to 1.75%. The Executive Board’s statement indicates more hikes are probable during the coming half year and revising projected inflation sharply higher to calendar year averages of 8.6% in 2022, 8.5% in 2023, and 2.2% […] More

New Overnight Developments Abroad - Daily Update

Large Jump in European Long-Term Interest Rates

September 20, 2022

Today is the Astart of the FOMC’s sixth scheduled policy review in 2022.  A third straight 75-basis point hike to a range of 3.0-3.25%  is anticipated, with the announcement due Wednesday at 14:00 EDT (18:00 GMT). Meantime, officials at the Swedish Riksbank today exceeded street expectations with a policy interest rate hike of a full […] More

New Overnight Developments Abroad - Daily Update

Risk Aversion Fueled by This Week’s FOMC Meeting and Hawkish Remarks from ECB Officials

September 19, 2022

The rout in equities retains plenty of momentum today even though Japan and Great Britain are respectively closed in observance of Respect for the Aged Day and Queen Elizabeth’s state funeral. Share prices closed down 1.4%, 1.1%, 1.0% and 0.9% in China, South Korea, Hong Kong and Taiwan, and losses have occurred thus far in […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: September 17 – 23, 2022

September 16, 2022

Central Banks: An unusually large number of central bank policy stances are scheduled for review, featuring the Federal Reserve, Bank of Japan, and Bank of England but also including Brazil, South Africa, China, Norway, Sweden, Turkey, Taiwan, Indonesia, the Philippines, the UAE, Saudi Arabia and Switzerland. Minutes from the last Reserve Bank of Australia policy […] More

Central Bank Watch

Central Bank of Russia Cuts Interest Rate Again

September 16, 2022

the Central Bank of Russia’s policy interest rate was sliced by 50 basis points to 7.5%, which is only about half as much as August’s 14.3% year-on-year rate of Russian CPI inflation. According to a released statement, Russian GDP is liable to contract 4% or slightly more this year, and subdued consumption should promote a […] More

New Overnight Developments Abroad - Daily Update

Intensifying Exodus from Equities

September 16, 2022

Led by a nearly 21% overnight plunge in Fed Ex shares, key U.S. stock market indices are down about 1%. Stock markets in the Pacific Rim had closed down 2.3% in China, 2.3% in China, 1.9% in Indonesia, 1.8% in India, 1.3% in Australia and 1.1% in Japan. The German Dax and Paris Cac are […] More

New Overnight Developments Abroad - Daily Update

Marking Time Ahead of U.S. Data and Xi/Putin Meeting

September 15, 2022

There’s been little financial market reaction from data released overnight. Investors are looking ahead to a slew of U.S. releases later today, including retail sales, import prices, industrial production, the Empire State and Philly Fed monthly manufacturing surveys, and weekly jobless insurance claims. Markets will also be keeping an eye on face-to-face talks later today […] More

New Overnight Developments Abroad - Daily Update

Inflation Remains the Paramount Market Driver

September 14, 2022

U.S. equities on Tuesday experienced their largest selloff in two years, triggered by a disappoint consumer price report that showed the U.S. core inflation rate jump 0.4 percentage points to 6.3%, food price inflation of 11.4% (most since 1976), and a higher-than-forecast 12-month increase in total CPI inflation of 8.1%. The move out of riskier […] More

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