GBP Dips, UK Says Goodbye to Queen Elizabeth

The British pound has started the week in negative territory after posting a losing week. GBP/USD is trading at 1.1374, down 0.31% on the day. The pound closed below the 1.14 level on Friday, which hasn’t occurred since 1985. UK at standstill for Queen Elizabeth’s funeral Today is a bank holiday in the UK, as […]

USD/JPY Pushes above 143, Core CPI Next

The Japanese yen is trading lower today. In the North American session, USD/JPY is trading at 143.52, up 0.44%. Japan’s Core CPI, a key inflation indicator, is expected to rise to 2.7% in August, up from 2.4% in July. Fed, BoJ to meet later this week Central banks will be in the spotlight this week, […]

Sunset Market Commentary

Markets No mercy for sterling today even as it’s the Queen’s state funeral. Cable is drifting towards Friday’s sell-off low at 1.1350 with EUR/GBP reaching for the 0.88 big figure. General market conditions are thin though in Asia and Europe with Japan and London closed. The trading theme is well-known: central bank’s determination in normalizing […]

SNB Expected to Deliver 0.75% Hike

The Swiss franc has started the week in negative territory. In the North American session, USD/CHF is trading at 0.9674, up o.31%. Swiss National Bank to continue tightening The Times They Are a Changin. This is nowhere more apparent than in Switzerland, where the SNB is poised to end the negative rate era on Thursday. […]

Is the Fed Preparing to Crash the Markets, Or Will it Give Them a Helping Hand?

The weekly balance sheet data from the Fed showed an increase of 10.4 billion – a very unexpected change as the central bank should, on the contrary, have accelerated the balance sheet reduction since the beginning of September. However, so far, the Fed has broadly stuck to its plan. The official release on May 4 […]

Another Fed Hike is Coming; Mind the Dots

We have a very busy week ahead of us with four central bank meetings on the agenda, but the one to stand out may be the FOMC decision, scheduled on Wednesday at 18:00 GMT. Following last week’s hotter-than-expected CPIs for August, market participants have put on the table a full percentage point hike. But will […]

RBA to Raise the Cash Rate by 50 bps on October 4

We have long argued that the Reserve Bank Board should slow the pace of rate increases once it reaches its assessment of neutral. That is particularly because of the ‘treacherous lags’ that will have built up as the inevitable result of such a sharp rate increase in rates, from 0.1% back in May. The Governor […]

Riksbank in Focus

Market movers today The key event today in the Nordic region is the Riksbank decision, where we expect a 75bp hike of the policy rate to 1.50% and a policy rate path signalling more near-term rate hikes (we expect 75bp again in November), for more details, please see the Nordic section below. The German producer […]

Big Week for Central Banks

The week kicked off on quite mixed sentiment. The German stocks gained, while CAC40 posted a small loss on Monday. The UK was closed due to Queen Elizabeth’s funeral and the US indices closed the session in the positive thanks to a late trading rally, that boosted appetite in Big Tech stocks. Apple jumped 2.50% […]

Dollar Found a Short-Term Equilibrium Going into Fed Policy Decision

Markets The new week didn’t bring any change to market trends/narrative going into multiple central banks decisions, including the FOMC announcement on Wednesday. Markets continue to prepare for (or is it rather push?) inevitable bold central bank action to finally break a stubborn inflationary dynamic. Curve inversion/flattening trends continued unabatedly.US yields rose between 6.9 bps […]