UK Money Markets Discount consecutive 75 bps Rate Hikes in Nov, Dec, Feb

Markets UK Gilts hugely outperformed German Bunds and US Treasuries as it became clear that Rishi Sunak would become the next Prime Minister. The main move occurred at the start of trading after ex-PM Johnson dropped out of the race over the weekend before even getting in. UK yields fell around 30 bps across the […]

German Business Climate: Steadily Grim

The Ifo Business Climate Index from Germany was above expectations in October – slightly down from 84.4 a month earlier to 84.3. The index components’ current situation and business expectations also marginally changed. But the overall level shows that the climate remains gloomy. The expectations index rose from 75.3 to 75.6 for the month, while […]

Japanese Yen Settles Down

The Japanese yen is almost unchanged today, after being whipsawed over the past two sessions. In the European session, USD/JPY is trading at 1.48.93, down 0.06%. It’s been a roller-coaster ride for the yen, as USD/JPY rose 1.7% on Friday and declined by 0.9% on Monday. It’s clear that the driver behind this volatility has […]

Markets Steady as Investors Eye Earnings and ECB

European markets edged cautiously higher on Tuesday as investors digested upbeat corporate earnings and news that Rishi Sunak would replace Liz Truss as U.K. prime minister. The latest German IFO Business Climate Index supported sentiment by showing some signs of stabilisation, albeit at low levels. Most Asian shares staged a sharp rebound during early trade, […]

Australian Dollar Steady after Slide

AUD/USD has steadied today after two days of sharp swings. In the European session, the Australian dollar is trading at 0.6317, up 0.09%. It was a brutal start to the week for the Australian dollar, which sank 1.1 per cent on Monday. The manufacturing and services PMIs both slowed in October, pointing to weaker economic […]

US Dollar May Take a Breather

Markets The UK’s new finance minister Hunt teared his predecessor’s mini budget to pieces and that set the tone on global markets yesterday. Nothing survived other than the reversal of the National Insurance increase and the cut to stamp duties. Hunt went even further and limited the extraordinary costly government price guarantee on energy from […]

Flashing Green

Asian stocks were flashing green on the second day of trading, while Europe is poised to open in a similarly positive manner as sentiment continues to improve, albeit from very low levels. There’s still a strong feeling of a bear market rally about trading over the course of the last week. From the post-US-inflation rebound […]

Japanese Yen Breaks above 149

USD/JPY has edged higher today and is currently trading at 149.17. The yen has fallen for eight straight sessions, losing 500 points in that time. Yen slide continues The yen continues to set new 24-year-old lows as the dollar/yen has pushed above the 149 line. This is a higher level than when the government intervened […]

Aussie Steadies Ahead of Jobs Data as RBA Enters the Slow Lane

The Australian dollar has been having a rough ride lately, sliding to two-and-a-half-year lows against the US dollar as the outlook for the world economy has deteriorated. The Reserve Bank of Australia’s recent dovish pivot hasn’t helped matters. However, the jury is still out on whether the RBA’s move was the right one or if […]

BoJ Cannot Defend the Yen and is Unlikely to Want to

The exchange rate of the Japanese yen to the dollar is renewing its 32-year lows since the beginning of the week, and there is no end to the move. The USDJPY has touched and exceeded 149 and has gained about 3% since the beginning of the month. The pair has gained an astounding 45% since […]