Weekly Market Update
European currencies explode as Germany embraces fiscal stimulus We saw truly massive shifts in the FX market last week, with moves not seen since the early chaotic days of the COVID-19 pandemic. Highlights: Trump’s tariff chaos continues. Germany changes tack on fiscal rules. EU on course to ramp up its defences. USD falls against every […]
Weekly Market Update
Currency markets volatile as traders digest Trump tariff news President Trump’s decision to postpone tariffs on Canadian and Mexican goods last Monday whipsawed markets, and led initially to a sharp relief rally in major currencies. Highlights: Trump delays tariffs aimed at Canada and Mexico. China tariffs take effect, but retaliation limited thus far. Risk currencies […]
Weekly Market Update
Dollar pull back gathers speed as tariff threat fades. A “tariff relief” rally gathered speed last week, as Trump’s flurry of initial activity and executive orders seem to be focused elsewhere for now, and markets hope that their worst fears on tariffs will not be realised. Highlights: Trump tariff threats less severe than feared. USD […]
Weekly Market Update
Relentless US dollar rally continues into 2025 The holiday period, and the first few trading sessions of 2025, brought no respite for the FX market from the main themes of late-2024. Highlights: USD starts 2025 firmly on the front foot. Markets brace for Trump 2.0 by sending US rates higher. EUR/USD falls to November 2022 […]
Weekly Market Update
European currencies dragged down by downbeat ECB forecasts The ECB meeting last week went mostly according to the script, with a 25bp cut and significant downward revisions to the bank’s view on Euro Area economic growth. Highlights: USD outperforms ahead of ‘hawkish cut’ from Fed. ECB cuts rates, while lowering growth outlook. BoE to hold […]
Weekly Market Update
Dismal PMI numbers sink sterling and the euro The ‘Trump trade’ took a bit of a breather last week as bargain hunters emerged to shop for its victims, including Treasury bonds and selected EM currencies that had been cheapened by the post-election selloff. Highlights: Euro sinks as Euro Area PMIs point to contraction. Trump cabinet […]
Weekly Market Update
Dollar rallies on as inflation fears in the US take hold There were divergences in the so-called Trump trade last week. Highlights: Dollar extends gains on US inflationary fears. Euro hits news lows ahead of November PMI figures. GBP underperforms peers after soft UK GDP data. BoJ governor hints at December rate hike. Australia jobs […]
Weekly Market Update
Dollar soars after Trump sweep Market uncertainty over the US election was resolved in the most clear-cut way imaginable, as the Republicans swept not only the presidential contest but also the House and the Senate. Highlights: Trump election win boosts US dollar. Republicans win clean sweep in Congress. Dollar rally fades after initial aggressive move. […]
Weekly Market Update
Dollar ekes out more gains as markets eye Trump victory. The ‘Trump trade’ continues to drive markets worldwide, and currencies are no exception. Highlights: Dollar remains on top as Trump leads in WH race. EUR/USD falls on dovish ECB remarks. UK Autumn Budget set to unveil large tax hikes. JPY hits new lows after LDP […]
Weekly Market Update
Dollar extends rally as US inflation rebounds A modest upside surprise in the US September inflation readings added to the upward pressure on long-term Treasury yields, which underpinned the dollar rally. Highlights: USD extends rally on US inflation surprise. ECB seen cutting rates by another 25bps this week. UK CPI report, Labour budget eyed by […]