Central Bank Watch
Bank of Israel Policy Rate Cut to 3.75%
May 25, 2026
The policy interest rate of the Bank of Israel as expected has been lowered by 25 basis points today. This was the fourth such cut since the start of 2024 but only the first since this past January. At 3.75%, the new interest rate level is its lowest since September 2o23. The central bank’s statement […] More
New Overnight Developments Abroad - Daily Update
Holiday Interruptions and Optimism about a Deal to Open the Strait of Hormuz
May 25, 2026
(138) U.S. and British financial markets will be closed for Memorial Day and the late spring bank holiday, respectively. While many other European countries will be observing Whit Monday, the major stock markets are open. President Trump keeps dangling the prospect of a coming deal with Iran to end the war, reopen the Strait of […] More
New Overnight Developments Abroad - Daily Update
Balancing Strong Corporate Earnings Against Continuing Frustration Over Failure to Reopen the Strait of Hormuz
May 22, 2026
This week at least the lack of cheery news on the U.S./Iranian negotiating front was outweighed by proof of continuing heavy investment in AI and overall strong profitability in the tech industries. U.S. equities rose further today. Japan’s Nikkei leaped by 2.7% and was nearly matched by a rebound in Taiwanese equities. Stock markets rose […] More
New Overnight Developments Abroad - Daily Update
Thursday Highlights
May 21, 2026
Whereas it was President Trump’s questionable decision to launch a military attack on Iran with the intent of never allowing the current regime there to possess nuclear weapons lit the fire of global inflation and the second major supply shock of this decade, purchasing manager surveys reported today suggest that other countries so far are […] More
New Overnight Developments Abroad - Daily Update
Watching Iran, Central Banks and Inflation Data While Also Anticipating Nvidia’s 1Q Earnings Report
May 20, 2026
As has become increasingly common, same-day movement in Asian equity markets has been opposite in direction from the trends in Europe and North America. On this Wednesday, Pac Rim share prices closed lower, including losses of 1.7% in New Zealand, 1.3% in Australia, 1.2% in Japan and 0.9% in South Korea. The major euro area […] More
New Overnight Developments Abroad - Daily Update
Dollar Strengthens Amid Bad Vibes from Ceasefire Talks and Tense U.S. Politics
May 19, 2026
In there deepening impasse, the U.S. and Iranian negotiators have seemingly moved further away from any willingness to compromise their demands. Trump claims to have postponed a planned obliteration of Iran to give peace one last chance, but Iranian negotiators treated his revelation as a bluff. Trump, too, seems to be holding fewer cards, as […] More
New Overnight Developments Abroad - Daily Update
Only the Middle East Conflict Seems to Matter These Days
May 18, 2026
(139) Now into its twelfth week, the negotiating impasse between the United States and Iran and ongoing halt to shipping traffic through the Strait of Hormuz continues to override all other factors affecting financial markets especially in the face of evidence of mounting inflationary pressure around the world. The latest U.S. proposal, an offer to […] More
Foreign Exchange Insights and Next Week
Taking a Long View of the Dollar
May 17, 2026
A paradox of recent foreign exchange conditions is that while the phenomenon of upwardly shifting inflation prospects and downwardly shifting economic growth forecasts concerning 2026 around the world was a by-product of the U.S. decision to wage war against Iran, the U.S. dollar has so far weathered the storm surprisingly well. As the world’s hegemonic […] More
New Overnight Developments Abroad - Daily Update
Xi-Trump Summit Is Over But Concerns about Iran and Inflation Continue
May 15, 2026
The meeting between the Chinese and U.S. presidents exuded friendly optics but failed to allay fears about the continuing shutdown of the Strait of Hormuz and rising inflationary pressures felt around the world. More military confrontations were reported today from the Middle East. The dollar wore its refuge currency crown as the 11th week of […] More
New Overnight Developments Abroad - Daily Update
Smiles at Xi/Trump Summit in Beijing
May 14, 2026
Trump seemingly didn’t repel President Xi’s warning that the two governments would have a big problem if the U.S. interfered with Chinese policy toward Taiwan. After that, the two leaders got along well, and several business deals were announced. Trump claimed Xi’s support for the need to open up the Strait of Hormuz, but the […] More
