Yen Settles Down after Wild Ride

It was certainly a day to remember for the Japanese yen on Thursday. USD/JPY traded in a stunning 550-point range, as the yen fell sharply before reversing directions and closing the day up over 1 per cent. Things have calmed down today, as USD/JPY is trading quietly at 142.37. Japan’s currency intervention sends yen flying […]

GBP/USD Can't Find its Footing

GBP/USD is down sharply today and has fallen below the 1.11 level for the first time since 1985. In the European session, GBP/USD is trading at 1.1125, down 1.16%. The British pound can’t seem to find any love. GBP/USD is looking dreadful, down 2.1% this week and 3.8% in September. The currency hasn’t sunk to […]

CAD Extends Losses, Retail Sales Next

The Canadian dollar is in negative territory for a fourth straight day. In the European session, USD/CAD is trading at 1.3522, up 0.24% on the day. The US dollar continues to shine, particularly against risk-sensitive currencies such as the Canadian dollar. USD/CAD has jumped 1.9% this week and the Canadian dollar has fallen to lows […]

Euro Slides on Soft PMIs

The euro is down sharply today, as the US dollar continues to post gains against the major currencies. In the European session, EUR/USD is trading at 0.9746, down 0.90%. It has been a dreadful week for the euro, which has declined by 2.6% and continues to set new 20-year lows. German, eurozone PMIs continue to […]

The Dollar is Creeping Up

The dollar is developing its FX offensive, leaving it at highs against a basket of the six major currencies. The main driver of this rise remains the monetary policy differential, where the US has had the most hawkish stance amongst the major central banks for over a year. The Fed has raised the rate three […]

BoJ Intervention May Not Halt Yen's Slide

USD/JPY consolidates post-BoJ intervention The Japanese yen clawed back some losses after the BoJ intervened in the FX market for the first time since 1998. The central bank has loaded up on its currency in an attempt to ease the imported inflation pressure. However, this symbolic move may only offer the battered yen relief and […]

Fed Keeps Pushing USD to 2000s Highs

Recent inflation data showed no improvement despite the Fed’s aggressive tightening and the key rate hikes. On Wednesday, September 21, Federal Reserve Chair Jerome Powell announced that the Fed would “keep at” their battle to beat down inflation. The US central bank hiked interest rates by 75 basis points for the third time in a […]

Markets' Answer to UK Chancellor Kwarteng's Mini Budget was Clearcut

Markets: A vote of no confidence. Markets’ answer to UK Chancellor Kwarteng’s mini budget was clearcut. He announced a bunch of tax cuts including lowering the 45p top rate of income tax (40p instead) and a cut in stamp duty on home sales. The measures come on top of the governments’ earlier announced energy subsidies […]

Lights, Camera...Action! Central Banks Center Stage

Summary Central banks were front and center this week, as major institutions such as the Federal Reserve, Bank of Japan (BoJ) and Bank of England (BoE) met to assess monetary policy in their respective economies. At a high level, policymakers generally communicated a hawkish outlook for monetary policy, although the Fed’s updated “Dot Plot” garnered […]

Weekly Focus

Central banks delivered further hikes largely as expected, as inflation pressures remain high despite the rising recession risks. In the US, Fed hiked rates by 75bp as broadly expected, but the updated ‘dot plot’ signalled more hawkish rate expectations than markets had expected. While Powell provided few new signals on the upcoming tightening pace, he […]