Weekly Market Update
Currency markets churn as politics takes centre stage Politics will take centre stage in the next few weeks, with heightened volatility likely in domestic markets and currencies. Highlights: EUR underperformance continues as investors await French election. European PMIs weaken, pointing to softer Q2 growth ahead. US PMI data beats estimates, focus turns to PCE […]
Weekly Market Update
Investors flee to the dollar as elections and politics drive markets Highlights: Euro struggles as French election uncertainty adds unwanted political risk premium. US inflation misses expectations, but FOMC signals only one rate cut ahead in 2024. Bank of England set to keep rates unchanged but could indicate first cut on the horizon. We got […]
Weekly Market Update
Elections and strong US data slam emerging market currencies Highlights: ECB lowers rates for first time in five years, but markets see announcement as ‘hawkish cut’. Shift to political right in European elections weigh on the common currency. US payrolls report smashes past expectations ahead of FOMC meeting (Wednesday). BoJ to keep rates unchanged (Friday), […]
Weekly Market Update
ECB set to cut rates despite stalling disinflation Highlights: – ECB set to cut interest rates for first time, despite stalling disinflation trend. – US PCE inflation report meets expectations ahead of May payrolls data. – JPY rebounds after hawkish BoJ comments raise rate hike bets. – CAD underperforms peers on soft GDP report. Bank […]
Weekly Market Update
Sterling advances as UK election called for July Highlights: GBP rises to March highs as UK election unexpectedly called for 4th July. ECB policymakers hint at June interest rate cut. Euro Area PMIs disappoint expectations. Japanese authorities ramp up yen intervention talk, as USD/JPY rate approaches line in the sand. Hawkish RBA, RBNZ policy announcements […]
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. […]