Euro Climbs to 3-Week High

The euro is red hot, having gained close to 2% in just two days. EUR/USD is trading at 1.0144, up 0.97% on the day. ECB gives euro boost The ECB showed last week that its hawkishness was not limited to words, as the central bank delivered a massive 0.75% rate hike, for only the second […]

US Inflation Could Slow Again in August But Not Enough to Appease the Fed

The latest CPI inflation data will be scrutinized on Tuesday (12:30 GMT) as it will be the last before the Fed’s September policy meeting. Last month’s report offered the first hope in months that price pressures have started to abate, but Fed policymakers were quick to dash expectations that this would equate to an immediate […]

Sunset Market Commentary

Markets The dollar again took center stage at the start of the new week. After correcting lower last Friday, the greenback continued to trade on the back foot today. It coincided with a better risk mood in general with equities advancing 0.7% in the US and almost 2% in Europe. Some attributed it to the […]

Demand Destruction Push Energy Prices Lower

Market movers today All eyes will be on the US CPI for August, which is one of the last key inputs for the Fed’s decision to hike either 50bp or 75bp at their meeting next week. We look for another print of -0.1% m/m in the headline CPI bringing the y/y rate down to 8.0% […]

US Inflation

Global indices made a solid start to the week. The EuroStoxx 600 closed yesterday 1.76% higher on news that the Ukrainians are doing well pushing back the Russians in territories they launched a counteroffensive, while the S&P500 and Nasdaq advanced more than 1%. The S&P500 even registered its strongest four-day rally since June, and recovered […]

US CPI Inflation is Today's Main Dish

Markets US Treasuries underperformed German Bunds yesterday. US yields added 1.4 bps to 6.5 bps with the 10-30yr bucket being worse off. The main move occurred in the wake of a very weak $32bn 10-yr Note auction which stopped nearly 3 bps through the WI bid with a below-average bid cover. The $41bn 3-yr Note […]

Italian Election: Will a Far-Rright Victory Hurt the Euro?

Italy will head to the polls on September 25 amid the painful energy crunch. The political landscape in the third largest EU economy has been notoriously unstable and it might enter a new era of uncertainty during the next few months, as the far right is largely expected  to come into power for the first […]

Sentiment Positive ahead of US Inflation Report

Asian shares rose on Tuesday, tracking the positive overnight cues from Wall Street as investors turned cautiously optimistic over the highly anticipated US inflation report. In Europe, stock futures point to a mixed open along with US markets, despite the recent positive market sentiment. Easing oil prices have injected financial markets with a sense of […]

Australian Dollar Extends Gains on Solid Data

The Australian dollar continues to rally and has climbed above the 0.69 level for the first time in September. AUD/USD has gained 150 points since Thursday, as the US dollar continues to lose ground. Australia released key confidence indicators earlier today, and the decent numbers gave the Aussie a slight push higher. NAB Business Confidence […]

Bitcoin Skyrockets Ahead of ETH Merge and US CPI Release

Bitcoin is trading above $22 000 on Tuesday as it continues a week-long rally ahead of the US inflation data and a highly anticipated Ethereum network upgrade. After falling below $19 000 on Wednesday to its lowest level since June, Bitcoin has rallied around 20%. Bitcoin’s advance is also related to winning last week for […]