Czech National Bank

Large 125-Basis Point Interest Rate Hike at the Czech National Bank

November 4, 2021

There had already been rate hikes of 25 basis points in both June and August followed by 75 basis points in September, but those increases were a mere preamble to a 125-basis point rise in the two-week repo rate to 2.75%. Like many other monetary authorities, those at the Czech National Bank attribute the recent […] More

Big Rate Hike by the Czech National Bank

September 30, 2021

The Czech National Bank two-week repo rate was hiked by 75 basis points to 1.50%. Instead of implementing a third 25-bp increase since June, this surprisingly large tightening reverses all but 50 basis points of last year’s net reduction of the policy interest rate. In early February of 2020, the rate had been raised from […] More

End of Third Quarter 2021

September 30, 2021

The DXY weighted dollar dipped 0.1% overnight but experienced a quarterly advance of around 2.5%. In the Pacific Rim, share prices on the final trading day of the quarter rose 1.9% in Australia, 1.4% in New Zealand, 2.0% in Indonesia, and 0.9% in China but fell by 0.4% in Hong Kong and 0.3% in Japan. […] More

Czech Monetary Policy Tightened for Second Time This Year

August 5, 2021

The Czech National Bank today followed up on an initial 25-basis point increase of its two-week repo rate that was done in June. From March to May of last year the rate had been slashed by 150 basis points in three moves. Today’s increase was also by 25 bps and brings the 2-week repo rate […] More

Dollar Dips as U.S. Covid Cases Swell and Trade Deficit Climbs to Record High in June

August 5, 2021

U.S. Covid-19 cases rose to 96.0k yesterday from 92.6k on Tuesday. The United States goods and services trade deficit of $75.749 in June was a record monthly high. The first-half deficit of $428.6 billion was 46% greater than in the first half of 2020. The Bank of England’s Monetary Policy Committee again voted unanimously to […] More

Lower Dollar

May 6, 2021

The dollar settled back 0.4% on a weighted basis and against the euro overnight. The dollar also lost 0.5% relative to the Swiss franc, 0.3% versus the loonie, and 0.1% relative to the New Zealand and Australian currencies. The dollar alternatively edged 0.1% higher against the peso and sterling and held steady on balance versus […] More

Uncertain Economics, Public Health, and Politics

February 4, 2021

Investors continue to grapple with uncertainty on several planes. Covid: The trend in new cases has slowed but remains well above what was seen in earlier waves of the pandemic. Hospitalizations are down, but two potential super-spreading events loom: the Chinese New Year holiday and Super Bowl Sunday in the United States. Vaccines are being […] More

Dollar Slinks to Another 32-Month Low and Several Central Banks Leave Interest Rates As Is

December 17, 2020

The DXY trade-weighted dollar index fell below 90 to as low as 89.79. Overnight losses occurred across of broad cross-section of key bilateral dollar relationships amounting to 0.9% versus the kiwi, 0.8% relative to sterling, 0.7% versus the Australian dollar, 0.5% against the yen and euro, 0.3% vis-a-vis the Canadian dollar, and 0.2% versus the […] More

U.S. Still Counting Votes as 24-Hour Rise Covid Cases and Deaths Exceed 107K and 1.1K

November 5, 2020

U.S. Election News: Biden’s electoral college count seems likely to reach 270 threshold. Trump is suing to halt counting of absentee ballots, and street protests against such action broke out in several cities overnight. Congress most likely will remain divided with Dems controlling the House and Republicans holding the Senate, but there too ballot counting […] More

Nine-Week High in Trade-Weighted Dollar Despite Adverse U.S. News

September 24, 2020

The dollar rose overnight to a nine-week trade-weighted high of 94.55. The U.S. currency touched a three-month high of NOK 9.5974 against the Norwegian krone, two-month highs of 1.1633 per euro and CHF 0.9269, and 1-month highs of $0.6516 against the New Zealand dollar and ZAR 17.2230 versus the South African rand. Gold, which tends […] More

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