CB Speakers (Fed's Mester, ECB's Lane, BoE's Bailey and Cunliffe) are a Wildcard

Markets Yesterday, risk sentiment remained fragile even as US markets (Columbus Day) and some Asian markets were closed. EMU equities (EuroStoxx 50 -0.55%) mostly closed in negative territory, but the damage could have been worse given the poor US close on Friday and an escalation of the conflict in Ukraine. Risk-off and growing recessionary fears […]

Increasingly Pessimistic

European stock markets are poised for another weak open as much of Asia reopened on Tuesday to large declines. Asia is flashing red as it nears the close and Europe may be facing a similarly bleak day. JP Morgan CEO Jamie Dimon didn’t hold back in his assessment of the economic outlook, adding to the […]

Will GDP Shake Up GBP/USD?

GBP/USD is trading quietly for a second straight day. In the North European session, GBP/USD is trading at 1.1035, down 0.18%. The pound has not posted a winning day since October 12th and has lost 400 points during that time. GBP/USD dropped below the symbolic 1.10 line earlier today, and a break below 1.10 will […]

Will US Inflation Seal the Deal for Another Triple Fed Hike?

After another employment report pointing to further tightening in the US labor market, market participants are nearly fully convinced that the Fed will deliver its fourth consecutive 75bps hike when it meets on November 2, and that’s maybe why they kept buying dollars. However, with still three weeks until the meeting, those bets could well […]

AUD/USD Falls to New 18-Month Low

AUD/USD continues to lose ground and can’t find its footing. The Aussie started the week on the wrong foot, with a decline of 1.0% on Monday. In today’s European session, AUD/USD is trading at 0.6266 down 0.52%. Earlier the day, the Australian dollar fell to 0.6247, its lowest level since April 2020. Weak PMI, confidence […]

Market Mood Fragile Ahead Of US CPI

A sense of deep unease rippled through financial markets on Tuesday as concerns over the global growth outlook and geopolitical threats left investors on edge. European stocks were painted red this morning amid fears around untamed inflation pushing interest rates higher at the expense of economic growth. US stock futures are pointing to a lower […]

GBP Has Already Passed its Bottom, Despite UK Job Market Data

A fresh batch of UK labour market data points to a turn for the worse, foreshadowing an economic slowdown sooner than in Europe or the USA. The claimant count in September rose by 25.5k after a nominal increase of 1.1k a month earlier. This is a much more substantial increase than the expected 4.2k and […]

Sunset Market Commentary

Markets And there is the Bank of England again. Just yesterday, it announced additional measures to support market functioning. In a statement today, the UK central bank widened the scope of its emergency gilt purchase operations to include index-linked government bonds. “…, the beginning of this week has seen a further significant repricing of UK […]

Gold's Momentum Shifted

Gold reversed course last week retracing its steps back to the $1660 level, after the dollar reinstated its position as the preferred safe haven asset of the market. Weighing the precious further was the resurgence of bond yields climbing near their highs after their recent hiccup and Fed’s policy makers’ hawkish remarks. In this report […]

Bank of England Continues to Rattle the Market

Market movers today This morning we get euro area industrial production for August. After a big drop in July of 2.3% m/m it is expected to recover somewhat in the August reading. US PPI for September may grab some attention ahead of the important US CPI release tomorrow. Import prices have declined for the past […]