Next Week’s Menu: May 27 – June 2, 2023

May 26, 2023

Central Banks: Monetary policies to be reviewed in Thailand and Kyrgyzstan. Federal Reserve Beige Book of regional economic conditions and minutes from last European Central Bank governing council meeting to be published. Bowman and Jefferson from the Fed and ECB President Lagarde speak publicly during the week. Events and Holidays: Turkey’s runoff presidential election happens […] More

Another Bank of England Interest Rate Hike

May 11, 2023

As expected, the Bank of England’s Base Rate was increased by 25 basis points to 4.50%, although two of the nine members of the Monetary Policy Committee voted to leave the rate at 4.25%. By tightening again on top of 75 basis points of increase earlier this year and rate hikes from 0.10% at the […] More

Australian Central Bank Rate Hike and Probably Not the Last One

May 2, 2023

The Reserve Bank of Australia‘s Official Cash Rate has been raised by 25 basis points and at 3.85% is 375 basis points higher than a year ago. Beginning in May 2022 from a pandemic base of 0.10%, the OCR was increased at every scheduled opportunity except in March 2022, when “the Board held interest rates […] More

Fresh Concerns about the Banking System, But Also Some Good News from Tech Sector

April 26, 2023

First Republic Bank’s deposit base hemorrhaged over $100 billion last quarter. This disclosure sent the company’s stock price plunging 49% overnight. In contrast, the earnings reports of Alphabet and other tech giants surprised on the upside, and the Nasdaq has risen 1.2% in futures trading. In overseas equity markets, Japan’s Nikkei stock index closed down […] More

Lack of Market Leadership With Many Market Centers Remaining on Holiday

April 10, 2023

Just about all of Europe remains closed for Easter Monday. So do key current and former elements of the British Commonwealth such as Australia, Hong Kong, New Zealand, and India. South Africans are celebrating Family Day. The dollar has traded narrowly in the absence of market leadership, rising 0.3% against the kiwi, 0.2% relative to […] More

Next Week’s Menu: April 8 – 14, 2023

April 7, 2023

Central Banks: Policy meetings scheduled at the Bank of Korea and Bank of Canada. Minutes to be published from last FOMC and ECB policy meetings. Holidays and Special Events: Easter Monday in Germany, France, Italy, Canada, Australia, New Zealand, and many other members of the euro area. Family Day on Monday in South Africa. The […] More

Great Relief When U.S. CPI Fails to Exceed Expectations

March 14, 2023

The U.S. consumer price report for February was actually not entirely encouraging. But after a strong of worse-than-expected price news, the 6.0% year-on-year rise of total consumer prices matched expectations and represented the eighth decline in a rose from 6.4% in January and 9.1% last June. That was enough to send U.S. stock futures up […] More

Dollar Buoyed by Higher U.S. Long-Term Interest Rates and Reinvigorated Hawkish Fedspeak

March 2, 2023

In overnight action, the dollar advanced 0.6% against the euro, sterling, yuan and kiwi and by 0.5% relative to the yen and Australian dollar. At 4.07%, the ten-year U.S. Treasury yield has climbed 8 basis points today and 67 basis points over the four weeks since February 2nd. The Federal Reserve District presidents in Minnesota […] More

Dollar Strengthens Ahead of Release of U.S. Personal Consumption Price Deflator

February 24, 2023

Broad-based dollar strength overnight has yielded appreciations of 0.8% against the Australian and New Zealand dollars, 0.7% relative to the yen, 0.5% versus the yuan, 0.4% vis-a-vis the loonie, peso and sterling and 0.3% against the euro. The weighted DXY dollar index is 3.6% above its level at the start of this month. Ten-year sovereign […] More

Fifty-Basis Point Israeli Central Bank Rate Hike Exceeds Street Estimates

February 20, 2023

At 4.25%, the new Bank of Israel policy rate level is the highest in 172 month, and the latest Israeli CPI inflation rate (5.4%) is at its highest level in 171 months. With today’s 50-basis point increase, the Bank of Israel joins the National Bank of Serbia as ones that have already implemented a pair […] More