Central Bank of Armenia
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
Financial Markets Exhibit Astounding Sensitivity to a Single Inflation Data Point
December 13, 2022
When the wires flashed news that U.S. CPI inflation in November was lower than forecast, share prices soared while the U.S. 10-year Treasury yield and the dollar plunged. The instant reaction of the stock market was significantly reduced in pretty short time, but the sensitivity of financial markets underscored how uncertain traders feel about current […] More
Investors Heartened by Unconfirmed Social Media Reports that Chinese Covid Restrictions Will Be Relaxed Soon
November 1, 2022
Stock markets in the Pacific Rim soared 5.2% in Hong Kong, 2.6% in China, 1.7% in Australia, 1.8% in South Korea, and 1.2% in Singapore. Japan’s Nikkei firmed only 0.3%, by contrast, but equities in German, France, Great Britain, Spain and Italy are all trading 1-2% higher so far today. U.S. future point to a […] More
Armenian Interest Rate Hike to 9.5%
August 2, 2022
The Central Bank of Armenia had cut its refinancing rate in 2020 to a 10-year low of 4.5%. Increases from May 2021 had totaled 325 basis points by the end of that year and have been followed three more moves so far in 2022: 25 basis points in February, 125 bps in March and 50 […] More
A Chinese Cloud Moves Through Financial Markets
August 2, 2022
The game of chicken between House Speaker Pelosi and Chinese President Xi has generated a new run by investors into safer assets. Pelosi appears determined to not scrap her Asian trip stop in Taiwan, and Xi is warning of unspecified reprisals. In overnight market action, share prices closed down 2.4% in Hong Kong, 2.3% in […] More
Dollar Marking Time as Two-Day FOMC Meeting Commences
December 14, 2021
The dollar remained unchanged on balance overnight against the euro, Swiss franc, kiwi, yuan and versus its weighted DXY index. The greenback ticked 0.1% higher relative to the yen and loonie and 0.1% lower vis-a-vis sterling. A two-day meeting of the FOMC began in which policymakers are expected to accelerate previously signaled plans to taper […] More
Lacking Much Direction
August 3, 2021
The dollar drifted lower overnight, losing 0.4% against the peso and kiwi, 0.2% versus the Swiss franc, yen, Aussie dollar and sterling, and 0.1% relative to the euro and weighted DXY index. The dollar is unchanged against the yuan and 0.6% firmer against the Turkish lira. At an intra-day low of 1.15% and 1.17% currently, […] More
