Tag Archives: Bank of England

Overview: The dollar is narrowly mixed against the G10 and emerging market currencies today. The euro is little changed, holding on to last week's gains, after the surprising French election results, where the focus shifts finding a prime minister that can carry a majority of the new and closely divided National Assembly. Despite firm underlying wage data, the Japanese yen has given back its initial gains, and the dollar is pushing back above JPY161 in the European...

Overview: The US dollar is trading higher against all the G10 currencies today but the Norwegian krone. Norway’s central bank left policy on hold and warned that if the economy performs as expected, it does not anticipate a rate cut until next year. On the other hand, the Swiss National Bank surprised many with its second consecutive rate cut. The Swiss franc is the weakest of the major currencies, off about 0.70% against the dollar. The Bank of England is up next....

Overview: The new week has begun off quietly. The dollar is in narrow ranges against the G10 currencies, +/- 0.15% as the North American market prepares to open. The Dollar Index is trading inside the narrow pre-weekend range. With softer US CPI, retail sales, and industrial production due this week, we have a downside bias for the greenback. Most emerging market currencies are firmer. A few Asian currencies, including the Chinese yuan and Philippine peso are among...

(On business trip over next few days. Commentary to resume Monday.  Thanks for your patience.) Overview: Sweden's Riksbank became the second G10 central bank to cut rates this year. The Swiss National Bank cut its deposit rate in March. A couple other large central banks, including the European Central Bank, and possibly the Bank of Canada, may cut rates next month. The Swedish krona is the weakest of the G10 currencies today, off by about 0.45%, but the Australian...

Overview: The dollar has been confined to narrow ranges ahead of the US CPI report. Given the backup of US rates and the stronger-than-expected jobs growth, the greenback's performance has been unimpressive. The Reserve Bank of New Zealand signaled that it was in no hurry to cut rates and it helped underpin the New Zealand dollar. Up about 0.2% today, it is leading the G10 currencies higher. Strong earnings from TSMC may have helped underpin the Taiwanese dollar...

Overview: At the end of last week, the derivatives market was again pricing in nearly four Fed cuts this year, but this week's data have seen expectations re-converge with the Fed's three rate cuts signaled in December, while cutting the odds of June hike to the lowest in the more than four months. This has helped lift the dollar against all the G10 currencies this week. As is often the case in a firm US dollar environment, the Canadian dollar has fared the best,...

Overview: Amid a light news stream, the dollar is mostly in narrow ranges against the G10 currencies. Leaving aside the Norwegian krone, the others in a +/- 0.15% against the dollar today. We note that the technical tone of the euro and sterling have improved withe the five-day moving averages crossing above the 20-day moving averages. On the other hand, the dollar is approaching the year's low set last week near JPY150.90. Emerging market currencies are mostly...

Overview: The dollar is trading quietly after being sold yesterday. It is still soft against the dollar bloc and the Swiss franc but is firmer against the other G10 currencies. Narrow ranges have dominated. Emerging market currencies are mixed, with central European currencies and the Taiwan dollar trading softer. The offshore Chinese yuan is firmer for the sixth consecutive session. The highlights of today's North American session features minutes from last month's...

The Bank of England and HM Treasury have formed a CBDC Academic Advisory Group (AAG). The AAG will bring together a diverse, multi-disciplinary group of experts to encourage academic research, debate and promote discussion on a range of topics, to support the Bank and HM Treasury’s work during the design phase of a digital pound. Members: Alexander Edmund Voorhoeve Professor of Philosophy London School of Economics Alistair Milne Professor of Financial Economics Loughborough University...

Commentary will resume with a 2024 outlook on December 29. Overview: The dollar is trading with a firmer bias today ahead of the outcome of the FOMC meeting. Standing pat for two meetings was framed as a pause, but given the decline in price pressures, being unchanged for a third meeting is understood as the end of the historically aggressive tightening cycle. Fed Chair Powell is expected to express greater confidence that policy is sufficiently restrictive to bring...