Yen Edges Lower as NFP Close to Forecast

It has been a week to forget for the Japanese yen, as USD/JPY has climbed 2.23% and has pushed across the symbolic 140 line. In the North American session, USD/JPY is trading at 140.57, up 0.26% on the day. US Nonfarm Payrolls within expectations There was plenty of anticipation ahead of today’s nonfarm payrolls, with […]

Sunset Market Commentary

Markets The US economy added 315k (vs 298k expected) jobs in August according to the payrolls report. A 107k downward revision to the previous two months’ data takes some shine off the headline figure. The unemployment rate rose from 3.5% to 3.7%, but because of the “good reason”; the labor force participation rate showed an […]

US: Payrolls Have Another Solid Month, While the Unemployment Rate Rises from its Pre-pandemic Low 

The U.S. economy added 315k jobs in August, coming in slightly above the consensus forecast of 300k. Revisions to the two prior months were negative, subtracting 107k jobs to the previously reported figures, though most of the pullback was concentrated in June (revised down by 105k). Employment gains on the service side (263k) were disproportionately […]

ECB is Far from Beating Inflation, Euro Remains Vulnerable

Another euro zone’s inflation report is noticeably above analysts’ expectations. Eurozone data published on Friday afternoon showed producer price growth of 4% for July and 37.9% year-on-year. At the same time, analysts had expected a 2.5% m/m increase and a slowdown in the annual inflation rate to 35.8%. The fresh data set a new historical […]

Upcoming Cold Winter and Burning Energy Prices, What Will Europe Do?

Natural gas is the cornerstone of the European economy. If most of the world is struggling with rising energy prices, Europe is under the fiercest attack among us. Natural gas and electricity prices have risen to “ridiculous” levels, increasing pressure on consumers and businesses across the EU. As the energy crisis worsened, inflation jumped in […]

ECB Has Little Choice But to Tighten Faster

EUR/USD falls over gloomy outlook The euro weakens as traders fret that an aggressive ECB is pushing the bloc to the brink of a recession. Euro zone inflation continues to surge and could hit a double digit soon. Prices excluding volatile food and fuel jumped over 5%, which is a sign that inflation is gaining […]

Weekly Focus -Tightening Talks

Hawkish central bankers: Fed chair Powell struck a fairly hawkish tone in his Jackson Hole speech, signalling that Fed is committed to bringing inflation down even if it requires an extended period of below-trend growth and some weakening in labour market conditions – a message which was also echoed by other FOMC members. ECB seems […]

Job's Not Finished: Bank of Canada to Hike Rates Again

Another hefty 75 bps increase in the overnight rate is what we expect from the Bank of Canada next week. This would take the rate to a restrictive 3.25%, just above the 2% to 3% range the central bank deems “neutral” (the rate at which interest rates are neither adding to nor subtracting from longer-run […]

Week Ahead – ECB Decision Highlights Central Bank Trifecta

An action-packed week lies ahead, featuring central bank meetings in the Eurozone, Canada, and Australia, an output decision from the OPEC cartel, and the selection of the next UK prime minister. The ECB will likely steal the show, as policymakers seem prepared to roll out the big guns to defend the sinking euro.  Euro squeeze? […]

Will Another 50bps Hike by the RBA Lift the Aussie?

With the Australian economy performing relatively well compared to others and inflation rising to its highest in 21 years, the Reserve Bank of Australia (RBA) is all but certain to hike interest rates when it meets on Tuesday, with the decision scheduled to be announced at 04:30 GMT. That said, the big questions on investors’ […]