August 2024 in Figures – Currency Thoughts
August 2024 in Figures
August 31, 2024
A sharper drop in U.S. long-term interest rates than those elsewhere during August was associated with renewed upward pressure on stocks and broadly spread dollar losses.
At the Bank of England, officials among the five central banks featured in the table below were the only ones to hold an interest rate review during August, and they agreed by a narrow 5-4 vote to implement an initial rate reduction from its cyclical peak. Among other central banks that eased monetary policy in the month, those in New Zealand and the Philippines also experienced their first interest rate cuts; officials in Sweden and Mexico did their second rate cuts; Botswana’s policy interest rate was reduced for a third time; and there was a sixth central bank rate reduction for this easing cycle at the Dominican Republic and a ninth in Peru.
Japanese monetary policy is in an entirely different situation. A second interest rate tightening had been implemented on the final day of July, and rhetoric by Bank of Japan officials during August implied more moves to come. In contrast to other stock exchanges, Japan’s Nikkei-225 index lost ground in August.
Aside from speculation about upcoming monetary policy changes, U.S. political uncertainty and the vastly different domestic and foreign policy approaches desired by the Republican and Democratic Party candidates also exerted a significant influence on financial market activity. In this period of elevated known unknowns, gold again outshined crypto currencies as a hedge against uncertainty. The price of West Texas Intermediate oil briefly penetrated $80 per barrel shortly before mid-August but closed the month with a net loss of more than 5%.
| 10-Yr Yield | 08/30/24 | 07/31/24 | August Delta |
| U.S. | 3.90% | 4.06% | -16 Basis Points |
| Germany | 2.30% | 2.30% | 0 |
| Japan | 0.88% | 1.04% | -16 |
| U.K. | 4.01% | 3.97% | +4 |
| Canada | 3.16% | 3.17% | -1 |
| Switzerland | 0.38% | 0.38% | 0 |
| CB Policy Rate | 08/30/24 | 07/30/24 | Aug Change |
| Fed funds target | 5.25/5.50% | 5.25/5.50% | 0 basis points |
| ECB refi rate | 4.25% | 4.25% | 0 |
| BOJ policy rate | around 0.25% | around 0.25% | 0 |
| BOE Bank Rate | 5.00% | 5.25% | -25 |
| Swiss Policy Rate | 1.25% | 1.25% | 0 |
| FX | 08/30/24 | 07/31/24 | Aug Chg in $ |
| EUR/USD | 1.1049 | 1.0823 | -2.0% |
| USD/JPY | 146.20 | 149.46 | -2.2% |
| USD/CHF | 0.8500 | 0.8796 | -3.4% |
| GBP/USD | 1.3130 | 1.2857 | -2.1% |
| AUD/USD | 0.6766 | 0.6542 | -3.3% |
| NZD/USD | 0.6249 | 0.5952 | -4.8% |
| USD/CAD | 1.3493 | 1.3809 | -2.3% |
| USD/CNY | 7.0931 | 7.2196 | -1.8% |
| Equities | 08/30/24 | 07/31/24 | Aug Change |
| S&P 500 | 5648 | 5521 | +0.9% |
| Nasdaq | 17714 | 17599 | +0.7% |
| Djia | 41563 | 40843 | +4.4% |
| Dax | 18407 | 18509 | +1.5% |
| Nikkei | 38648 | 39102 | -1.2% |
| Ftse | 8377 | 8368 | +2.5% |
| Canada TSE | 23348 | 23084 | +5.8% |
| Swiss SMI | 12457 | 12317 | +2.7% |
| Commodities | 08/30/24 | 07/31/24 | August Chg |
| Oil, $ per barrel | 73.55 | 77.91 | -5.6% |
| Gold, $ per ounce
Bitcoin, $ |
2527.60
59151 |
2473.00
64222 |
+2.2%
-7.9% |
Copyright Larry Greenberg 2024. All rights reserved. No secondary distribution without express permission.
Tags: financial market movements in August 2024
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