SNB Opts for Smaller Hike But Signals It Isn't Done Yet

The Swiss National Bank slowed the pace of its tightening cycle on Thursday, in line with market expectations but signaled there is more to come. While most central banks would dream of 2.2% inflation right now, the SNB has made clear that there will be no complacency. Today’s hike likely doesn’t mark the end of […]

BoE Slams on the Brakes Again, CBRT a Step in the Right Direction

The Bank of England accelerated its tightening efforts after meeting this week, hiking rates by 0.5% in response to another raft of worrying inflation data. And it’s not just yesterday’s CPI data that will have caused considerable discomfort for the MPC, the April figures were also far too high and wage numbers we’ve had in […]

Bank of England's Expected Surprise

The Bank of England raised its key rate by 50bp to 5.00% – a sharper move than analysts who had made their forecasts earlier in the week had expected. However, it’s a logical move, given that the latest inflation data from the previous day exceeded both market expectations and the Bank’s forecasts. Given the persistently high inflation in the UK, we should have expected a tougher stance from the central bank.

Bank of England Review

The Bank of England (BoE) hiked the Bank Rate (key policy rate) by 50bp to 5.00% with 7 members voting for a 50bp hike and two members voting for unchanged.

As Yen Collapses, How Likely is FX Intervention?

With the yen breaking down lately, Japanese authorities have stepped up their warnings about FX intervention. However, the conditions for intervention are not fully present yet, as the moves in USDJPY in particular have not been sharp enough. For the yen to stage a lasting recovery, it might require some policy tightening from the BoJ or an episode of panic in global markets instead. 

Keeping Up with the Central Banks

There were three major surprises from three central banks yesterday. BoE hikes 50bp, peak rate seen unchanged past 6% The Bank of England’s (BoE) decision to step up the pace of rate hikes at the 13th meeting since the start of the tightening policy has been broadly unwelcomed from households, to bond and stock investors, […]

Ethereum Touches Support Level, Bitcoin Yet to Follow

Ethereum has exhausted most of its corrective potential, as it has breached the 200-day moving average at $1630 and briefly touched oversold territory on the daily RSI.

Sunset Market Commentary

ECB governors en masse used the opportunity to speak again after yesterday’s ECB meeting passed by. We kick off with Wunsch. His speeches in the past very often foretold monetary policy.

Ending the Week on a Positive Note, More Central Banks Next Week

Markets are ending the week on a positive note but there remains enormous uncertainty around inflation and interest rates that looks set to continue throughout the summer.

The End of China's Recovery?

Over the last week, Chinese authorities have taken a series of measures to prop up the economy. That could be seen initially as a good sign for the global economy and commodity prices. But if the economy is doing well, then it typically doesn't need extraordinary measures of support. Which could indicate a more long-term worry, and ultimately hurt commodities as well as their respective currencies.