Trader Thoughts – How Close are We to Japanese JPY Intervention?
USDJPY and the JPY crosses capture the minds of traders – while there’s so much going on in central bank land, the BoJ in its meeting today decided to sit on their hands and do absolutely nothing. Whilst in some...
Fed Policy Meeting: Switching to Sharper Rate Hikes?
The Federal Reserve is undoubtedly expected to approve another jumbo-sized rate hike at the conclusion of its policy meeting on Wednesday at 18:00 GMT. Following the latest surprise pickup in inflation, investors have immediately become certain that the central bank...
Kiwi Caught in Fed and Inflation Crossfire, New Zealand GDP Might Not Help
New Zealand’s economy has had a bumpy but strong recovery from the pandemic lockdowns and data due on Thursday (Wednesday, 22:45 GMT) is expected to show GDP kept expanding in the first quarter. The healthy economic backdrop has allowed the...
Weekly Economic & Financial Commentary: SNB and BoE Hold Policy Meetings Next Week
Summary United States: Prices Push Higher in May, Signaling Little Immediate Relief for Consumers Consumer price inflation continued to push higher in May, with the consumer price index rising more than expected and lifting the annual rate of inflation to...
The Weekly Bottom Line: The Good, the Bad and the Ugly
U.S. Highlights U.S. CPI came in above expectations, with the headline reading reaching a new 40-year high. Core inflation also surprised with a broad-based acceleration. The U.S. trade deficit narrowed in April with both lower U.S. imports and rising exports...
U.S. Inflation Numbers Set the Stage for More Hikes from a Hawkish Fed
With inflation soaring, the U.S. Federal Reserve is widely expected to hike its target rate by another 50 basis points, taking it into the 1% range). And it’s not done yet. This morning’s May inflation numbers were once again above...
Loss of Correlation with Stocks will Pave the Way for Crypto to Portfolios
Bitcoin was down 0.3% on Thursday, continuing to hover around $30K. This mild decline was a bonus of last month’s loss of correlation between the cryptocurrency and stock markets. Ethereum lost 0.4%, settling near $1800. Other top-10 altcoins showed mixed...
US CPI Preview – A Playbook on the Worlds Most Important Data Point
With the world so myopically focused on global inflationary trends, the clear focus now falls on tomorrow’s (22:30 AEST / 13:30 BST) May US CPI report – arguably the most important economic release on the calendar The market expects US...
Australia Dollar Dips as Rate Rally Fizzles
The Australian dollar has reversed directions on Wednesday and is slightly lower. AUD/USD is trading at 0.7209, down 0.28% on the day. Aussie runs out of steam The RBA surprised the markets with a supersize rate hike of 50bp yesterday,...
RBA Board Raises the Cash Rate by 50 Basis Points; Another 50 in July
We expect the Board will decide on another 50 basis point increase in July. By front loading the moves it can firmly establish its inflation fighting commitment. The cash rate is then likely to move in 25 basis point increments...