Archive for Economics & Fundamentals

Fiji maintains rate as 2017 growth forecast revised up

By     Fiji’s central bank kept its Overnight Policy Rate (OPR) at 0.50 percent – unchanged since October 2011 – and confirmed last week’s upward revision of its 2017 growth forecast to 3.8 percent from October 2016’s forecast of 3.6 percent.     The Reserve Bank of Fiji also said its dual monetary policy […]

Ukraine cuts rate another 50 bps and sees further easing

By     Ukraine’s central bank cut its policy rate by a further 50 basis points to 12.50 percent and said it may continue easing its monetary policy, with the speed and size of further rate cuts based on how fast inflation falls towards the bank’s target this year and in 2018.     The […]

Dollar under pressure after Fed minutes

Article by ForexTime The Greenback found itself under noticeable selling pressure during early trading on Thursday after May’s Federal Reserve meeting minutes were neatly packaged with a dovish undertone. Although expectations of a rate hike in June were realised when Federal Reserve officials said it would “soon be appropriate” to raise rates again, the longer-term […]

Canada holds rate, says data, investment “encouraging”

By     Canada’s central bank left its benchmark target for the overnight rate at 0.50 percent, as widely expected, and described economic data as “encouraging,” including that of business investment, and that the country’s economy had now largely adjusted to lower oil prices.     But while the Bank of Canada (BOC) was more […]

Tunisia raises rate another 25 bps to curb inflation

By      Tunisia’s central bank raised its key interest rate by a further 25 basis points to 5.0 percent in order to limit the impact on the economy from rising inflationary pressure and a growing current account deficit.     The Central Bank of Tunisia (CBT) has now raised its rate by a total […]

EUR/USD: FOMC minutes may spur profit taking on recent rally

By Macroeconomic overview: The head of the Federal Reserve Bank of Philadelphia Patrick Harker said that U.S. interest rate hike next month is a “distinct possibility”. He added that another disappointing reading on monthly inflation could cause the U.S. central bank to hold back. Minneapolis Federal Reserve Bank President Neel Kashkari said that while […]

Nigeria holds rate, easing may worsen inflation pressure

By     Nigeria’s central bank left its Monetary Policy Rate (MPR) at 14 percent, as expected, and said it was concerned “that loosening would exacerbate inflationary pressures and worsen the gains so far achieved in the exchange rate of the naira.”     The Central Bank of Nigeria (CBN), which has maintained its rate […]

Egypt raises rate 200 bps on growing risks to inflation

By     Egypt’s central bank raised its key policy rates by 200 basis points to 16.75 percent, surprising financial markets and investors, and said it “will not hesitate to adjust its stance to offset anticipated upside or downside deviations from the inflation target.”     The Central Bank of Egypt (CBE) has now raised […]

This week in monetary policy: Egypt, Ghana, Hungary, Nigeria, Argentina, Thailand, Canada, Paraguay, South Korea, Ukraine, Moldova, Fiji, South Africa, Colombia and Trinidad & Tobago

By     This week (May 21 through May 27) central banks from 15 countries or jurisdictions are scheduled to decide on monetary policy: Egypt, Ghana, Hungary, Nigeria, Argentina, Thailand, Canada, Paraguay, South Korea, Ukraine, Moldova, Fiji, South Africa, Colombia, and Trinidad and Tobago.      Following table includes the name of the country, the […]

Mexico raises rate 25 bps as risks to inflation worsen

By     Mexico’s central bank raised its benchmark interest rate for the third time this year prevent higher inflation and anchor inflation expectations risks to inflation had deteriorated “moderately.”     The Bank of Mexico (Banxico) has now raised its rate by 375 basis points since the U.S. Federal Reserve began normalizing its policy […]

Who Are ASEAN’s Biggest Military Spenders, Really?

By Dan Steinbock The conventional military narratives highlight aggregate expenditures and downplay per capita spending. Realities are more nuanced, both globally and in Southeast Asia. The conventional narrative is that China has become assertive, while the West is ignoring its defense needs. According to SIPRI research, in the past decade military spending in China and […]

USD/JPY: Stay short for 111.60

By Macroeconomic overview: U.S. manufacturing production recorded its biggest increase in more than three years in April, bolstering the view that economic growth picked up early in the second quarter despite a surprise decline in homebuilding. The broad strength in factory output reported by the Federal Reserve on Tuesday added to labor market data […]

How the Belt and Road Could Change the 21st Century

By Dan Steinbock Until recently, globalization was led by the West and benefited only a few advanced economies. After China’s three decades of rapid growth, the Belt and Road initiatives hold potential for more inclusive globalization. During the weekend, the Belt and Road Forum for International Cooperation flooded Beijing with almost 30 heads of state […]

EUR/USD: Stay long for 1.1130

By Macroeconomic overview: The regional Fed’s Empire State index on current business conditions declined to -1.0 from +5.2 in April. It sank into negative territory for the first time since October, prior to the U.S. presidential election. The optimism on fiscal stimulus from Washington has diminished in recent weeks as the administration and leading […]

Will market volatility pick up in the week ahead?

Article by ForexTime Last week represented an unusually quiet one for the financial markets in terms of volatility and with the economic calendar relatively light over the next couple of days, the week ahead might be similar. It is a bit early to attribute the lower levels of market movements to a possible summer lull […]

EUR/USD: Fed will raise rates in June, but further hikes are under question

By Macroeconomic overview: U.S. retail sales increased broadly in April while consumer prices rebounded, pointing to a pickup in economic growth and a gradual rise in inflation that could keep the Federal Reserve on track to raise interest rates next month. The reports on Friday added to labor market data in suggesting the near […]