Sunset Market Commentary

The Bank of Japan brought the Japanese yen close towards new multidecade lows against the US dollar. USD/JPY pierced through 150 and then the 151 big figure. The couple rose to an intraday high of 151.95 in October last year before Japan turned to FX interventions.

Eurozone Inflation Eases Further than Expected, US ECI a Minor Corncern, BoJ Tweak Triggers Yen Slide

Inflation in the eurozone fell below 3% in October, with energy and food prices helping to push the headline number even lower than expected. While this is undoubtedly good news, the core number is probably a more accurate reflection of where things stand and the job the ECB still has in reining in inflation in a sustainable manner.

Fed in Focus

Market movers today The key market mover today will be the FOMC meeting tonight. We expect the Fed to stay on hold in line with consensus and market expectations, and look for no further hikes at a later stage either. As higher term premiums drive the tightening in financial conditions, Fed chair Powell could take […]

USD/CAD Analysis: New High of the Year

As the chart shows, yesterday, the USD/CAD rate exceeded 1.389 for the first time in 2023. This happened against the backdrop of news regarding the economies of the USA and Canada:

Dollar Braces for Another Round of Nonfarm Payrolls

The upcoming jobs data will shed some light on the health of the labor market, which has remained exceptionally tight so far. Nonfarm payrolls are projected to have risen by 170k in October, nearly half the 336k recorded last month, but still a solid number overall.

Japanese Yen Stabilizes on Intervention Threat

The Japanese yen has steadied on Wednesday, following massive losses a day earlier. In the European session, USD/JPY is trading at 151.19, down 0.34%.

Fed Likely to Stick to (Slightly Less) Hawkish Script, Manufacturing PMI's Remain Weak

The Fed meeting should be quite straightforward, with policymakers having come out in force to soothe market fears of another rate hike from the central bank, claiming recent moves in bond markets may have done some of the job for them.

Bank of England's November Interest Rate Decision and Its Potential Impact on the Pound

The British pound faces a crucial test as the Bank of England (BoE) prepares to announce its November interest rate decision. The outcome could significantly influence the pound's value, but several factors come into play.

Tokyo Inflation Report to Set the Scene for Next Week's BoJ Meeting

With only a few days left until the next Bank of Japan meeting, the market is trying to evaluate the impact of geopolitical developments. An escalation in the Middle East would most likely unsettle global markets and cause another rally in oil and gas prices, similar to the 2022 episode that fueled the elevated inflation rates.

Australian Dollar Falls Despite CPI Rise

Australian inflation was hotter than expected in the third quarter and that could translate into the Reserve Bank of Australia hiking rates after four consecutive pauses.