Week Ahead: US Core PCE and Jackson Hole Symposium to Dominate Headlines
Could the US Dollar finally settle down this week? Perhaps. But it might only be until Friday when Fed Chairman Powell speaks at the Jackson Hole Symposium. Can you recall a more volatile August for the US Dollar? Last week,...
Weekly Economic & Financial Commentary: The Fed Still Has More Work to Do
Summary United States: Expansion Not Yet Heading to the Gallows An increase in real retail sales by our estimates and a rebound in industrial production in July offered evidence beyond recent jobs data that the U.S. economy is not yet...
Hawkish FOMC comments and Norges Bank hike
Market movers today It will be a very quiet day on the data front today with only UK retail sales and German PPI of interest. The 60 second overview Norway: Norges Bank (NB) goes ‘front-loaded’ and hiked rates by 50bp....
2022 Conservative Party Leadership Election: What’s at Stake for the GBP?
Truss is arguing for looser fiscal policy and tighter monetary policy, a policy stance that has historically supported strength in the underlying currency Earlier this week, we discussed the political backdrop, candidates, and expected policies for traders to watch around...
The Pendulum Between Inflation and Growth Fears Swung from One Extreme to the Other
Markets Since the beginning of the year up until mid-June, investors turned a blind eye to growth risks, focusing solely on inflation developments and changing reaction functions of central banks (normalization/tightening). This resulted in an unseen core bond sell-off. Ever...
UK Inflation Unexpectedly Reached Double Digits (First Time Since 1982) in July
Markets: A dramatic sell-off in core bonds marked today’s market action. A number of smaller events culminated an impressive move. Yesterday’s earnings by US retailers Wallmart and Home Depot set things in motion. They beat consensus, putting away most pessimistic...
Pound Yawns as UK Inflation Hits 10.1%
The British pound is almost unchanged today, trading just above the 1.21 level. UK inflation hits double-digits It hasn’t been a good week for the UK, with today’s inflation report following grim wage growth numbers. Headline inflation in July hit...
UK Prelim Q2 GDP and Recession Outlook
After their last meeting, the BOE warned that 5 quarters of negative growth were coming. The consensus of expectations shows that there could be starting with data reports from tomorrow. There is an avalanche of data before the market opens,...
Oil Report: Bulls to Disrupt Current Stabilisation?
WTI’s price was on the rise yesterday, yet overall seems to remain rather stable yet at lower levels than our last report as the price remains near $90 per barrel. It should be noted that the data released related to...
Oil Report: Bulls to Disrupt Current Stabilisation?
WTI’s price was on the rise yesterday, yet overall seems to remain rather stable yet at lower levels than our last report as the price remains near $90 per barrel. It should be noted that the data released related to...