The Established Uptrend in Yields Continues Post-Fed

Markets No big hawkish surprises post-Fed as the Bank of Japan, Swiss National bank, the Norges Bank and the Bank of England announced their answers to arrest above-target inflation (for Norges Bank and SNB see infra). After a split vote, the BoE raised its policy rate by ‘only’ 50 bps to 2.25%. (5 votes for […]

New Zealand Dollar Dips to 2.5 Year Low

The New Zealand dollar is in negative territory for a fourth straight day. NZD/USD fell as low as 0.5803 in the Asian session, its lowest level since March 2020. Putin threats, Fed hikes weighs on kiwi The New Zealand dollar is in serious trouble. NZD/USD has slipped 2.2% this week, and September has been dreadful, […]

Swiss National Bank Exits Negative Rates

Summary The Swiss National Bank (SNB) delivered a 75 bps rate hike at its September monetary policy meeting, bringing its policy rate to +0.50%. Overall, the announcement’s forward guidance was not as hawkish compared to many other global central banks’ comments. Rather than signaling forceful rate hikes ahead, the SNB instead repeated that it cannot […]

Bank of England Update: Another 50bp Hike and We Expect More to Come

In line with our expectations, the BoE today hiked policy rates by 50bp, bringing the Bank Rate to 2.25. The extent to which fiscal policy is set to boost demand and hence impact policy setting is still highly uncertain. We maintain our call for a 50bp hike in November and December and 25bp in February […]

Global September Preliminary PMIs and Economic Outlook

After a week in which a dozen central banks around the world either tightened policy or resorted to currency intervention, the focus is now on the economy. Just how much of the move was priced in, and how much will economic growth be impacted going forward. So far, tightening has contributed to a stronger dollar, […]

New Zealand Dollar Extends Losses

The New Zealand dollar remains under pressure, as NZD/USD is having a dreadful week, down 2.47%. In the North American session, NZD/USD is trading at 0.5950, down 0.27%. NZ Manufacturing PMI surprises to the upside It has been a solid week for New Zealand data, but that hasn’t helped the New Zealand dollar, which has […]

Gold Isn't Saving Investors from Inflation

On Thursday, September 15, XAUUSD lost its major support, which used to limit the downside since April 2020. The decline happened amid expectations of more aggressive Federal Reserve interest rate hikes due to higher-than-expected US inflation. Why is gold falling? Investors treat gold as a hedge against inflation. A rise in inflation or inflationary expectations […]

RIP Cable

Markets RIP cable. GBP/USD in early European trading slipped below the 1.1412 support (2020 low). At 1.138, the currency pair is trading at its weakest level since 1985. It’s a long way still, but from a technical point of view there’s little to prevent cable from revisiting the all-time low at 1.052. Sterling faced selling […]

No Signs of Bottom Yet for Risk Assets

USD/JPY hovers under 24-year high The Japanese yen steadies as the government signals a market intervention. A rapid rise in interest rates across the globe has cut investors’ appetite for Japanese assets. Japanese officials have expressed their concerns over the currency’s steep decline lately. The Finance Minister remarked that options are open to stop the […]

Weekly Focus

The energy crisis in Europe and inflation developments continue to be a key market focus. The EU commission this week introduced a number of proposals to mitigate the impact of the energy crisis. The commission proposed to limit electricity demands by 5% in peak hours and introduce a windfall tax that to help fund shielding […]