Crypto as a Safe Haven. Finally?

Market picture Bitcoin is down 4.1% over the past week, ending near $18,900. Ethereum lost 5.8% to $1290. Other leading altcoins in the top 10 showed mixed dynamics, ranging from a 3.7% decline (Cardano) to a 27% increase (XRP). Total crypto market capitalisation, according to CoinMarketCap, declined by 2.4% over the week to $928bn. Cryptocurrency […]

The Pound's Collapse Could Trigger Its Reversal

Last week, we said there has not yet been a final capitulation in many markets. However, we have seen such a capitulation in the pound, often followed by global market reversals. We could see both the interest of long-term investors and the activation of speculators with the bet that such volatility will encourage politicians to […]

Sunset Market Commentary

Markets UK yield markets remain a barometer for broader trends. UK yields again jump between 50 (+)bps (2-y) and 20 bps (30-y). The government’s voluntary fiscal policy aimed at supporting growth and shielding citizens’ purchasing power is on collision course with the BoE’s aim to cope with inflation via a slowdown in demand. This institutional […]

Germany's Business Climate Worsens Further

Business sentiment in Germany continued its substantial deterioration in September. The Ifo says the business climate index fell from 88.6 to 84.3 this month. The index has only been lower for two months in its history – in April and May 2020. The actual figures were weaker than expected, at 86.9 and marked a deterioration […]

Central Bank Talks

Market movers today Focus remains on central banks, and not least on the UK outlook following yesterday’s volatility. Several speeches from key central bankers are scheduled for today, including ECB’s Lagarde, Panetta and de Guindos, Fed’s Powell, Evans and Bullard as well as Riksbank’s Ingves. Consensus expects the National Bank of Hungary to hike rates […]

Canadian Inflation Takes Another Step in the Right Direction in August

Consumer price inflation took another small step in the right direction in August, easing to 7.0% year-on-year (y/y), down from 7.6% in July. Lower gasoline prices helped cool inflation once again, falling 9.6% on the month – the largest monthly decline since April 2020. However, gasoline prices are still 22% higher than a year ago. […]

USD/JPY Rises as Inflation Rises

The Japanese yen is in negative territory, as USD/JPY trades at 143.67, up 0.31%. Will Fed or BoJ wake up sleepy yen? There is plenty of anticipation, as the Federal Reserve holds a meeting on Wednesday, followed by the Bank of Japan the next day. The yen has shown limited movement, oblivious to all the […]

BoE Decision a Close Call to Speed Up Rate Hikes as Worries Mount

The Bank of England will announce its September policy decision a week later than planned on Thursday (11:00 GMT) after the meeting had to be postponed until after the funeral of the late Queen Elizabeth II. As life in Britain returns to normal following a 10-day mourning period, policymakers are faced with the grim reality […]

Sunset Market Commentary

Markets: Today’s story is a quite straight-forward one. Accelerating Japanese inflation numbers (3% Y/Y) showed during Asian trading hours that there’s no escaping the inflation trends. Even if the Bank of Japan is expected to remain in denial on Friday. German producer price inflation set the tone in the early stages of European dealings. PPI […]

USD/CAD Jumps as Canadian CPI Falls

The Canadian dollar is sharply lower today. In the North American session, USD/CAD is trading at 1.3329, up 0.59% on the day. Canada’s inflation surprises to the downside Canada’s August inflation report fell to 7.0%, down sharply from 7.0% in July and below the consensus of 7.3%. This marks a second straight decline. On a […]