Weekly Market Update
Chinese stimulus news buoys risk assets, emerging markets Markets last week cheered news that Chinese authorities were launching a new and aggressive stimulus packaged to arrest the real estate market crash and support investment and consumption. Highlights: Risk currencies rally on news of China stimulus. US slowdown fears abate on strong activity data. Euro lags […]
Weekly Market Update
Federal Reserve goes big, but dollar hangs on The Federal Reserve decided to surprise markets and go for a double rate cut last week. Highlights: USD sell-off modestly as Fed delivers jumbo rate cut. FOMC surprises with 50bp cut, but ‘dot plot’ hawkish. Euro Area PMIs collapse, pointing to soft Q3 growth. BoE holds rates […]
Weekly Market Update
Dollar on the backfoot as markets price in 50% chance of a jumbo cut The first reduction in US interest rates since 2020 this week will be a seminal event for markets worldwide. Highlights: USD retreats as markets see a higher chance of a jumbo rate cut this week. JPY tops the G10 chart, reaching […]
Weekly Market Update
Safe havens soar as US labour market sends mixed signals The undeniable slowdown in the US labour market is causing market jitters about the possibility of a faster deterioration and a US recession. Highlights: Safe havens top the FX charts on soft US data. US NFP report misses expectations. Fed still seen delivering 25bp rate […]
Weekly Market Update
Dollar plummets as Powell opens the door wide to rate cuts At the Jackson Hole, Wyoming, annual central bank conference, Fed chair Powell left no doubt that he considers the fight against inflation as good as won and that the central bank’s priority has now shifted to preventing a serious deterioration of the US labour […]
Weekly Market Update
Safe-haven currencies soar on fears of US recession A weak US labour report validated fears that the US economy is slowing down faster than the Federal Reserve expects or wishes. Highlights: USD sinks after soft July nonfarm payrolls report. Fed seen cutting rates aggressively in 2024 amid US recession risk. BoE delivers 25bp cut but […]
Weekly Market Update
Could the Bank of England cut interest rates this week? The biggest moves in currency markets continue to be driven by the unwinding of popular 2024 trades. These are mostly “carry” positions, where trades borrow, or sell short, a low interest rate currency, primarily the yen, and buy a high-yielding one to profit from the […]
Weekly Market Update
Market jitters delivers rare win for safe haven currencies A bout of risk aversion in equity markets, after the sharp climbs of the past few weeks, put a bid under the two safe haven currencies, the Swiss franc and the Japanese yen. Highlights: Safe haven currencies outperform on bout of risk aversion. Biden withdrawal has […]
Weekly Market Update
Dollar sinks as European political worries ease Political fears eased last week as markets became less apprehensive about the French polls, sending risk assets and the euro up and the dollar down. Highlights: Political risk premium in Europe is reduced but uncertainty remains after the 2nd round of voting in France. Dollar sells-off against all […]
Weekly Market Update
Markets on edge as French vote does little to dispel uncertainty Politics continues to take font and centre in financial markets, with votes in the UK and France to be closely watched this week. Highlights: Euro posts modest gains as hung parliament likely after French 1st round elections. National Rally wins most votes, but […]