Weekly Market Update

Dollar falls hard on inflation relief Highlights: Slightly lower-than-expected CPI reading dragged down the US dollar, allowing for improvement in market sentiment. High beta currencies, notably NZD and NOK, performed particularly well. Safe havens underperformed. Economic data from China was mixed but highlighted issues in the real estate market, which authorities try to address with […]

Weekly Market Update

Dollar drifts higher as traders brace for inflation report Highlights: Currencies mostly bounced around in narrow ranges amid the absence of major news. BoE’s governor Bailey suggested market might be under-pricing cuts in the UK. Eurozone macro data continues to point to economic recovery. Riksbank cut its policy rate by 25 basis points last week […]

Weekly Market Update

Dollar rally halted by dovish Fed and soft employment data Highlights: The dollar depreciated against most currencies last week on the back of the Fed’s dovish tone and a weak US jobs report. The Japanese yen rose by more than 2% after massive intervention from Japanese authorities after the currency dipped to multi decade lows. […]

Weekly Market Update

Sterling shines as UK growth prospects brighten Highlights: Strong European PMI figures allay growth fears, boosting sterling and the euro. US economy slows in Q1, but high inflation suggests delayed start to Fed cuts. Japanese yen sinks to fresh three-decade lows, before rebounding on suspected FX intervention. AUD outperforms as hot Australian inflation data hints […]

Weekly Market Update

Dollar remains around highs on strong US activity data Highlights: US dollar remains around recent highs after strong retail sales data. UK inflation surprise buoys sterling ahead of PMI figures. ECB chief Lagarde hints again at June interest rate cut in the Euro Area. Swiss franc outperforms on safe-haven flows, yen remains around intervention levels. […]

Weekly Market Update

Dollar soars on hot inflation data, doubts about Federal Reserve cuts Highlights: Dollar outperforms as strong US inflation report delays expected timing of Fed cuts. Middle East tensions fuel safe-haven flows as Iran launches missile attack on Israel. ECB hints at June interest rate cut. UK economy grows in February, easing recession fears. JPY sinks […]

Weekly Market Update

Commodity-dependent currencies rally, as oil prices jump to multi-month highs. USD retraces gains despite very strong US payrolls report for March. ECB to hint at first interest rate cut in June after soft inflation figures. RBNZ and BoC to stand pat. JPY hold its own as markets eye direct FX intervention. The US dollar had […]

Weekly Market Update

Last week was awash with important central bank announcements, and one or two major surprises to boot. Perhaps the most significant announcement was that from the Bank of Japan. The BoJ raised its policy rate for the first time in seventeen years on Tuesday, an historic move that ended eight years of negative rates. The […]

Weekly Market Update

Last week’s US inflation report once again surprised to the upside. The numbers were not high enough to panic the Federal Reserve, although it seems clear that the disinflationary trend in the US has stalled, with annualised core inflation stuck near the 4% level for now. Treasury rates rebounded, ending the recent dollar sell-off and […]

Weekly Market Update

The world’s major central banks are inching closer to cutting rates, as the fight against inflation makes steady progress. While the ECB hinted at a June cut, without entirely ruling out an April move, the soft-ish labour market report out of the US helped make the case for a similar calendar for the Federal Reserve, […]