Flight to Safety

June 6, 2017

Investment safety is taking precedent over investment return this morning. Sovereign debt yields are considerably lower, including drops of five basis points in 10-year Treasury futures and British gilts. The 10-year German bund yields is down 3 bps, and its Japanese counterpart has dipped a basis point. The yen climbed 1% against the dollar to […] More

Sterling at Post-Brexit Low but Share Prices Climb

October 4, 2016

Britain’s plans to leave the EU has returned to center stage. Prime Minister Theresa May will address the Tory annual conference tomorrow, but she has already indicated a predisposition for no sugar-coating of the coming change in Britain’s relationship with the European Union. Access to the single market will be constrained, and the all-important financial […] More

Dollar Slightly Softer Ahead of U.S. Jobs and Trade Data

August 5, 2016

The dollar overnight lost 0.5% against the kiwi, 0.4% versus the Aussie dollar and sterling and 0.2% relative to the yen and euro. ┬áThe dollar is steady against the loonie, Swiss franc and yuan. Stocks have responded favorably to the Bank of England’s shock and awe response to the Brexit vote. Share prices in the […] More

Australian Official Cash Rate Held Steady at Record Low of 2.0%

February 2, 2016

The Reserve Bank of Australia released a statement today after its first Board meeting of 2016.  It observes that “the exchange rate has continued its adjustment to the evolving economic outlook” and makes the following other points: Recent Australian economic growth has remained positive but not quite as good as was expected. A four-year-long deterioration […] More

Reserve Bank of Australia

December 2, 2014

The 2.5% official cash rate since August 2013 was retained, and the preference for a period of interest rate stability for a period of time with a stance that is appropriately accommodative was reaffirmed in a released statement from Governor Glenn Stevens.  Sub-trend growth and in-target inflation are projected.  The statement observes a further increase […] More

Across-the-Board Rise in Dollar

December 2, 2014

The U.S. currency rose overnight by 1.1% against the kiwi, 0.8% versus the yen, 0.7% relative to the loonie, Aussie dollar and sterling, 0.6% against the Swiss franc and 0.5% versus the euro.  The yen touched a new low for the move of 119.30 per USD.  The 120 per dollar level, first approached at the […] More

Grim EU Economic Outlook in the Spotlight

November 4, 2014

The EU Autumn economic outlook was released, revising projected real growth for the euro area  in 2014 down 0.4 percentage points to 0.8% and projected 2015 growth down 0.6 percentage points to 1.1%.  Previously, GDP decelerated from 2.5% per annum in 1995-99 to a 1.9% pace in 2000-04 and 0.7% per annum in 2005-09, and […] More

New Zealand and Australian Central Banks in Spotlight

August 20, 2013

Central bank remarks, concerns about China, and softer commodities weighed on the kiwi and Aussie dollar, which respectively fell by 1.0% and 0.5% against their U.S. counterpart. Governor Wheeler of the Reserve Bank of New Zealand announced planned bank lending curbs to rein in house price inflation to be used in lieu of a hike […] More

Fresh Concerns Weaken Stocks and Lift Dollar Slightly

July 5, 2011

Moody’s is warning that Chinese banks may hold more problematic loans than generally realized. Service sector purchasing manager survey results show loss of momentum.  Euroland suffers biggest month-to-month drop of index since February 2009. Euro are retail sales sank 1.1% in May, largest drop of 2011 so far. Reserve Bank of Australia keeps policy unchanged […] More

Data Deluge and Bank of Japan Returns to ZIRP

October 5, 2010

The Bank of Japan cut the interest rate target on overnight uncolateralized money to 0-0.25% but in fact virtually zero (ZIRP).  An asset purchase program was also established with the intent of driving long-term interest rates lower.  Officials now see a slower pace of recovery and a delayed return to a path of sustainable growth […] More