European Central Bank Delivers Record Rate Hike, Signals Further Tightening

Summary Against a backdrop of persistent and elevated inflation, the European Central Bank (ECB) delivered a record rate hike at today’s monetary policy announcement, raising its Deposit Rate by 75 basis points to 0.75%. The ECB also said inflation remains far too high and that it expects to raise interest rates further over the next […]

Upcoming China Inflation and Commodity Demand

Earlier this week, the PBOC made a “surprise” announcement cutting the reserve requirement ratio (RRR) for banks. The “surprise” is in quotes, because even though it wasn’t pre-announced, the economic situation was such that a lot of analysts were speculating that it was just a matter of time. The economic situation in China has been […]

Cliff Notes: Market Unease Over Inflation Expectations to Persist

Key insights from the week that was. For Australia, GDP was the focus this week along with the RBA’s September decision and a speech by Governor Lowe. Globally, central bank decisions and views on the outlook remained key. Q2 GDP for Australia met the market’s expectation at 0.9%, 3.6%yr. As expected, household consumption drove growth […]

ECB and Danmarks Nationalbank Hike Policy Rates by 75bp

Market movers today Markets will digest yesterday’s ECB meeting and look out for ‘ECB sources’ stories today. Otherwise, focus will be on the EU energy minister meeting (press conference scheduled for 14:30 CET), where price caps, windfall profit taxes and emergency credit lines will be discussed, as possible measures to tackle Europe’s mounting energy crisis. […]

ECB Hikes, Euro and European Stocks Gain

The European Central bank (ECB) raised the interest rates by 75bp at yesterday’s monetary policy meeting and said there will be more rate hikes to fight inflation. That was in line with our expectations. The European policymakers revised their inflation expectations significantly higher and slashed their growth expectations significantly lower, but… said that they do […]

ECB Jacked Up Interest Rates by Unprecedented 75 bps

Markets The world’s two biggest central banks were in focus yesterday. The ECB jacked up interest rates by an unprecedented 75 bps to bring the deposit rate at 0.75%. Growth may grind to a halt in the next two quarters but that’s of secondary importance to sky-high and rising inflation and the risk of unanchored […]

ECB Hike Sends Euro Soaring

EUR/USD hasn’t posted a winning week since August, but a spectacular rise today should put that trend to rest. In the European session, the euro is trading at 1.0102, up an impressive 1.03%. ECB delivers There were plenty of expectations ahead of Thursday’s ECB meeting, as the markets waited to see if the ECB would […]

USD/CAD Slides ahead of Canada Employment Data

The Canadian dollar usually is calm prior to the North American session, but USD/CAD has posted steady gains in the Asian and European sessions. USD/CAD is trading at 1.2993, down 0.73% on the day. Canada’s job market expected to rebound Canada releases the August employment report later today, with a market consensus of 15.0 thousand. […]

Pound Soars as US Dollar Retreats

GBP/USD has recorded sharp gains today. In the European session, GBP/USD is trading at 1.1608, up 0.92% on the day. Still, the pound remains vulnerable – on Wednesday, it fell to 1.1407, its lowest level since 1985. Looking ahead to next week, there is a data dump on Monday, with GDP and Manufacturing Production the […]

Is Bitcoin making a comeback? It needs to be proven

Market picture Bitcoin was little changed on Thursday, ending around $19,400, but added more than 7% on Friday morning. So, in a period with relatively low liquidity, the BTCUSD has won back over two weeks of a slow slide down in one move. Does this look like a reversal? For now, it is more like […]