Central Bank Watch

ECB PEPP Tapering to Begin but Precise Change in Pace Not Disclosed

September 9, 2021

The European Central Bank left its -0.50% deposit rate, zero percent refinancing rate and 0.25% marginal lending facility rate unchanged. These record lows have been maintained since March 2016. But an initial step toward tapering quantitative stimulus was announced. While the overall size of the Pandemic Emergency Purchase Program (PEPP) stays at 1.85 trillion euros, […] More

New Overnight Developments Abroad - Daily Update

Thursday Spotlight on Central Banks but Attention Also Maintained on Covid and Inflation

September 9, 2021

The dollar fell overnight by 0.3% against the Swiss franc and 0.6% versus sterling but remain unchanged on balance against the euro. Dips of 0.1% occurred against the yen and weighted DXY index. Share prices are higher in the United States and Continental Europe but are down in Great Britain. Earlier in the Pacific Rim, […] More

New Overnight Developments Abroad - Daily Update

Dollar Firms Modestly Against Backdrop of Concern over Outlook for Equities

September 8, 2021

It’s normal at any time to encounter predictions of an imminent drop in equities, and the prevalence of Casandrian warnings has increased lately. The Covid pandemic keeps chugging along and preventing a full return of economic activity to the promised land and monetary policies to a semblance of normalcy. In the United States, new cases […] More

New Overnight Developments Abroad - Daily Update

Higher Long-Term Interest Rates Lifts Dollar and Depresses Stocks and Commodities

September 7, 2021

10-year sovereign debt yields are five basisĀ  points higher in the United States and Great Britain and up four basis points in Germany. The 10-year Japanese JGB yield, by contrast, is unchanged. The dollar rose 0.4% overnight against the DXY weighted index. The yen (up 0.3%) has outpaced the 0.1% upticks in the euro and […] More

New Overnight Developments Abroad - Daily Update

Dollar Reverses Friday’s Drop on This Monday Labor Day

September 6, 2021

The initial dollar response to a disappointing U.S. August jobs report had been downward, but the U.S. currency advanced in overnight trading by 0.3% against its weighted DXY index, the Swiss franc, sterling and Australian dollar, by 0.2% relative to the Canadian dollar and euro and by 0.1% vis-a-vis the Japanese yen. U.S. and Canadian […] More

Foreign Exchange Insights and Next Week

Next Week’s Menu: September 4 – 10, 2021

September 3, 2021

Central Banks: Monetary policies are being reviewed at the European Central Bank and in Poland, Russia, Australia, Canada, Ukraine, Malaysia, Peru, and Serbia. NY Federal Reserve President Williams, ECB President Lagarde, Bank of Canada Governor Macklem, and Reserve Bank of Australia Deputy Governor Debelle are some of the central bank officials speaking publicly in the […] More

New Overnight Developments Abroad - Daily Update

Economic Recoveries Restrained by Worker Fears of Catching Covid

September 3, 2021

U.S. August labor statistics highlight a mix of weakening jobs growth and strengthening upward pressure on prices. Non-farm payroll jobs rose only 235k, about a third as much as was forecast. This undershoot overwhelmed a combined 132k upward revision of jobs growth in June-July. Although the unemployment rate and under-employment rate dropped by 0.2 and […] More

New Overnight Developments Abroad - Daily Update

Covid Up, Inflation Up, Another Supreme Court Step Toward Overturning Roe, and a Flash Flood State of Emergency in NYC Headline Today’s News

September 2, 2021

U.S. deaths from Covid topped 1,400 on Wednesday, which constitutes a 75% jump from two weeks earlier. Producer prices in the euro area leaped 2.3% on month in July, the most since early 1995. Powered by a 28.9% increase in energy, the 12-month PPI increase swelled to 12.1%, most in almost four decades. Swiss consumer […] More

Central Bank Watch

Central Bank of Chile Tightens Again

September 1, 2021

Yesterday’s monetary policy review ended with a greater-than-expected 75-basis point hike in the Central Bank of Chile’s policy interest rate to 1.50%. An initial 25-basis point increase had been authorized at the previous review in July. The latest decision was made unanimously, and officials signaled that interest rate normalization has further to go. At 1.50%, […] More

New Overnight Developments Abroad - Daily Update

Afghanistan, Covid, and August Purchasing Manager Surveys

September 1, 2021

On this 82nd anniversary of the start of World War II, U.S. military forces have left Afghanistan, creating a whole new source of geopolitical uncertainty. The rapidly spreading Delta Variant of the Covid-19 pandemic remains the dominant economic and political wild card. There were over 160k newly identified U.S. cases of Covid yesterday, and almost […] More

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