New Overnight Developments Abroad - Daily Update

World Financial Markets React to Street Protests in China Against Covid Policy

November 28, 2022

A Fresh burst of risk aversion to start the week sent the dollar up 0.8% against the Australian dollar, 0.7% relative to the kiwi, 0.5% versus the loonie and Chinese yuan, 0.4% vis-a-vis sterling, 0.2% against the yen, and 0.1% versus the Swiss franc. The euro notably edged 0.1% higher against the dollar, aided by […] More

Foreign Exchange Insights and Next Week

Coming Week’s Menu: November 26 – December 2, 2022

November 27, 2022

Central Bank Activity: Monetary policy will be reviewed at the Bank of Thailand, and the Federal Reserve publishes its Beige Book of economic conditions in the twelve separate FRS districts. Powell, Cook, Williams, Evans, Logan and Bowman are some of the Fed officials speaking publicly during the period. European Central Bank President Lagarde and Vice […] More

New Overnight Developments Abroad - Daily Update

Dollar Recovers Some Ground

November 25, 2022

The dollar rose overnight by 0.6% against the yen, Swiss franc, and both Australian and New Zealand dollars. The dollar also climbed 0.5% versus the euro and 0.4% relative to the Canadian dollar and sterling. U.S. financial markets will close early today at 13:0o EST for equity trading and 14:00 EST (19:00 GMT) in the […] More

Central Bank Watch

Interest Rate Hike in Sweden and South Africa

November 24, 2022

The Swedish Riksbank’s repo rate was increased today by 75 basis points to 2.5%, and another increase early in 2023 is also anticipated. Even before the pandemic’s onset, Riksbank officials had experimented with a negative interest rate of as much as -0.50% until a pair  of 25-basis point hikes in December 2018 and December 2019. […] More

Central Bank Watch

Central Bank of Turkey Takes One More Rate Cut for the Road

November 24, 2022

The curious case of monetary policy at the Central Bank of Turkey moved further down the rabbit hole today with a 150-basis point additional drop in the policy rate to 9.0%. That’s ten percentage points below the 19% level that prevailed from March 2021 until September 2o21. This easing has been juxtaposed against accelerating inflation, […] More

New Overnight Developments Abroad - Daily Update

Several Central Bank Policy Meetings Elsewhere on This U.S. Thanksgiving Day

November 24, 2022

With the U.S. observing its quintessentially most unique holiday, the dollar continued to back off from recent highs, dropping 0.3% on a weighted DXY basis  overnight and extending its cumulative decline from peak to 7.8%. The dollar lost 0.9% against the yen today and 0.6% versus sterling but just 0.1% relative to the euro. Prices […] More

Central Bank Watch

Rate Hikes at the Reserve Bank of New Zealand and the Central Bank of Iceland

November 23, 2022

Although not a surprise to investors, the Reserve Bank of New Zealand official cash rate was increased by a larger 75-basis point increment to 4.25%. The prior five changes had been each an increase of a half percentage point. At the start of the tightening cycle in October 2021, the rate  had been just 0.25%. […] More

New Overnight Developments Abroad - Daily Update

November PMIs and Many U.S. Releases Just Before the Thanksgiving Break

November 23, 2022

Japanese are observing their Labor Thanksgiving holiday today, and Americans are getting ready for Thanksgiving, which will see a closure tomorrow and an extended long weekend for many companies. The dollar fell  overnight by 1.0% against sterling, which crossed above the $1.2000 threshold, up from a 2022 low of $1.0349. The dollar also lost 0.7% […] More

New Overnight Developments Abroad - Daily Update

Dollar and Sovereign Debt Yields Lower, while Equities Rebound

November 22, 2022

The dollar  fell overnight  by 0.8% against the Swiss franc, 0.5% versus the yen and sterling and 0.3% relative to the euro, Aussie dollar and loonie. Ten-year sovereign debt yields dropped six basis points in the U.S., four bps in the U.K. but just a basis point in Germany. The DOW and S&P 500 are […] More

Central Bank Watch

50-Basis Point Israeli Central Bank Rate Hike Brings Cumulative Increase Since April to 315 Basis points

November 21, 2022

The Bank of Israel’s new policy rate now becomes 3.25%, an 11-year high after the sixth increase this year. The rate had previously been just 0.10% since a 15-basis reduction in April 2020 and maintained there for two years. Like many monetary authorities around the world, Bank of Israel officials are fighting above-target and increasingly […] More

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