Thanksgiving Day Roundup November 28, 2024 While Americans observed their Thursday Thanksgiving holiday, the dollar strengthened 0.1-0.3% against the euro, yen, Swiss franc, sterling and Australian and New Zealand dollars but also retreated 1% against the Mexican peso. Stock markets in the Pacific Rim dropped 1.5% in India and New Zealand, 1.2% in Hong Kong,…
Stronger Dollar After Weak European Preliminary November Purchasing Managers Survey November 22, 2024 The dollar was already experiencing a post-U.S. election flight-to-safety rally. Elections have a propensity to introduce uncertainty. With other branches of the government on his side, President-Elect Trump plans several policy changes that will make economic life more difficult in other countries….
South Africa’s Second Central Bank Rate Cut Size of 25 Basis Points Matched Expectations November 21, 2024 The South African Reserve Bank policy interest rate was cut today to a 19-month low of 7.75%. A peak of 8.25% was maintained for 16 months from May 2023 until an initial reduction of 25 basis points at…
Russia’s War Takes a Provocative Step, and Crypto Experiences Another Strong Session November 21, 2024 Geopolitical tensions dominated overnight financial market trading. Data flow has been light, but still ahead are several U.S. releases plus the outcomes of monetary policy reviews in Turkey and South Africa. For the first time since Russia invaded Ukraine nearly…
Second Icelandic Central Bank Rate Cut Larger than the First One November 20, 2024 Iceland’s central bank interest rate had been held at 9.25% from August 2023 until an initial rate cut last month of 25 basis points. Today’s second reduction doubled the size of that increment. A released statement observes a broadly shared disinflation,…
Several Points of Focus Today November 20, 2024 Third-quarter earnings from the Nvidia, which arrive after markets close today, could be highly influential in determining where the stock market goes from here. Forward guidance from the AI chipmaker holds the key. Disinflation and sluggish growth in the euro area are the backdrop to the recent…
Investor Flight to Safety After Putin Threatens Use of Nuclear Weapons November 19, 2024 Geopolitical risk took a turn for the worse today. Russian President Putin widened conditions under which nuclear weapons might be used not only against Ukraine but allies of Ukraine whose long-range missiles are used against Russian sites by Ukraine. The clear…
Quiet Monday So Far Aside from Large Gains in Tesla and Crypto November 18, 2024 The weighted DXY dollar index has ticked 0.1% higher due to a 0.7% rise against the yen but mitigated by marginal dips against the euro, Swissy, and sterling. DOW and SPX futures are little changed, while a 3% advance in…
Next Week’s Menu: November 16-22, 2024 November 15, 2024 Central Banks: Monetary policies will be reviewed in China, Indonesia, Iceland, Turkey, Hungary and South Africa. Guindos and Schnaebel of the European Central Bank and Collins and Hammack of the Federal Reserve are some of the monetary officials with public speaking engagements in the period. Special…
Mexico’s Third Central Bank Rate Cut Thus Far November 15, 2024 The Bank of Mexico’s overnight interbank funding rate as expected was cut a third time since August to 10.25%. Like moves then and in September, today’s announced reduction was by a cautious 25 basis points. Mexico remains in Trump’s cross-hairs, and one risk is…