Dollar Mixed, Equities Down, Bond Yields Higher, and Mood Remains Fearful March 20, 2026 In overnight trading, the dollar rose 0.6% against the Japanese yen and 0.8% versus the South Korean won but slipped 0.3% relative to the Canadian dollar and 0.1% against the Swissy, euro and sterling. A five-basis point advance in the ten-year…
Middle East Takes a Turn for the Worse, Forcing Monetary Authorities Around the World to Wait and See March 19, 2026 The Strait of Hormuz remains essentially closed to shipping traffic, and Israel and Iran have escalated the race to destroy Middle Eastern energy facilities as thoroughly as possible. Brent crude briefly hit $119 per…
Observations from Fed Statement, Forecasts and Press Conference March 18, 2026 The press release reads very much like the one seven weeks earlier. Again and as was very widely expected, the federal funds rate was left unchanged at 3.50-3.75%. The insertion of a new sentence in paragraph two stating “the implications of developments in the…
Canadian Overnight Interest Rate Left Unchanged at 2.25% as Was Expected March 18, 2026 Few countries have been caught in maelstrom of the Trump administration’s policy upheavals as much as Canada. The two countries share the world’s longest border and enjoy the largest bilateral trading relationship as well. From an historically cordial relationship, the two…
The Federal Reserve is not expected to change its policy interest rate at this second scheduled review of 2026 and the next to last one that will be chaired by Jerome Powell. Some dissenting votes seem likely, and the risk of dissent is not entirely one sided because U.S. growth is slowing while inflation risks…
Icelandic Interest Rate Hike March 18, 2026 Policymakers at the Central Bank of Iceland today followed Australia’s lead yesterday, raising the Icelandic 7-day term rate by 25 basis points in a 3-2 decision that included two dissents favoring an increase of 50 basis points. It was the bank’s first rate increase since August 2023, and…
U.S. PPI, Fed Decision and Powell’s Press Conference Loom on a Day With Many Other Central Bank Rate Decisions as Well March 18, 2026 There’s been scant net movement in the dollar overnight. The Federal Open Market Committee is not expected to change the 3.5-3.75% federal funds target range, but today’s meeting has created considerable…
Another Australian Central Bank Interest Rate Hike March 17, 2026 By a narrow 5-4 vote, the Board of the Reserve Bank of Australia pulled the trigger a a second consecutive 25-basis point hike of the Official Cash Rate, which at 4.10% will now represent its greatest elevation in ten months. Australian CPI inflation last month…
Imploded Investor Confidence in Euroland, Some Central Bank Decisions, and the Alleged Death of Another Top Iranian Official March 17, 2026 In overnight financial market action, The dollar has dipped 0.3% against the Australian dollar following a rise in Australia’s Officials Cash Rate. The dollar is also down 0.2% versus the Mexican peso, and by…
Post-Covid Inflation Heavily Influenced by Global Factors March 16, 2026 National inflationary trends this decade have by and large followed a similar pattern. Consumer price inflation peaked in June 2022 at 9.1% in the United States, at 8.1% in Canada and at 10.6% in Euroland. The British and Turkish CPI peaks of 11.1% and 85.5%…