Bank of Korea
A Further Surge in Market Interest Rates Ahead of Biden & Powell Speeches Later Today
October 19, 2023
The 30-year Treasury yield jumped to a new high overnight of 5.07%, and the 10-year Treasury gained 7 basis points and is within 3 basis points of 5.00% versus 3.68% at the start of 2023. Surging interest rates continue to drain enthusiasm from stocks. Share prices overnight tumbled 2.5% in Hong Kong, 1.9% in Japan […] More
Softer Dollar As 2-Day FOMC Meeting Gets Underway
September 19, 2023
The dollar slipped overnight by 0.4% against the Canadian, Australian and New Zealand dollars, 0.2% relative to sterling, 0.3% against the peso and 0.1% vis-a-vis the euro and Swiss franc. Dollar/yen is steady. Share prices fell 0.9% in Japan, 0.7% in Singapore, 0.6% in South Korea, 0.5% in Australia and 0.4% in India and Taiwan. […] More
Mega-Hike in Turkish Central Bank Rate and a Republican Presidential Debate that Changes Little
August 24, 2023
The Central Bank of Turkey’s key interest rate was raised to 25.0% from 17.5%. This biggest move so far followed increases of 250 basis points in July and 650 bps in June and catapults the rate well beyond the prior peak of 19.0% for five months from March 2021 to August 2021. The size of […] More
German Recession Confirmed and Interest Rate Decisions in South Korea, Turkey and Indonesia
May 25, 2023
U.S. GDP data will be released shortly. In the meantime, German GDP growth last quarter was revised to -0.3% (not annualized) from zero percent reported originally. That’s the second negative quarter in a row and the third drop in the past four quarter, resulting in a negative year-on-year growth rate of -0.5% as well. The […] More
Financial Markets Fixated on Latest Round of Price and Bank Earnings Data
April 11, 2023
Ahead of U.S. consumer price and producer price releases tomorrow and Thursday, respectively, investors are combing through a number of other inflation reports around the world. There is additional concern that quarterly U.S. bank earnings due shortly will accentuate recessionary risks, and ongoing IMF/World Bank meetings running all this week also may generate market-sensitive headlines. […] More
Reacting to FOMC Minutes and Awaiting More U.S. Data Reports
February 23, 2023
FOMC minutes published Wednesday afternoon confirmed that some policymakers at the Fed leaned toward a 50-basis point hike rather than the 25-bp increase agreed upon. Consideration of a pause in tightening was off the table, and there was widespread consent that more rate hikes will be necessary. Investors now await revised 4Q U.S. GDP figures, […] More
Less Confidence About Where Inflation May Be Headed
January 13, 2023
Financial market participants are grasping for every straw about inflation the way they once did regarding news about the Covid-19 pandemic. Because there is so much uncertainty regarding each, wide daily and intra-day swings have become common, as each incremental piece of news tips sentiment. In the short first two weeks of 2022, one story […] More
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
Bank of Korea’s Base Rate Increased by 50 Basis Points
October 13, 2022
the Bank of Korea raised its base rate by 50 basis points to 3.0%. The size of that hike is double those of the prior seven increases of 25 basis points that began in August 2021. The vote behind today’s action was 5-2, with two dissents favoring another 25 basis point increase. Officials are sensitive […] More
Dollar Hits New 21st Century High against the Yen, Falls Back 0.8% versus Sterling, and Otherwise Generally Stable
October 12, 2022
The yen touched a new 24-year low of 146.67 per dollar overnight. The Bank of Japan’s continuing negative short-term interest rate stands apart from other central bank policies. Direct currency market intervention can do only so much to limit the yen’s weakness. Japanese data reported this Wednesday showed a 4.3% on-year increase in machine tool […] More
