Fed Decisively Intends to Keep Inflation Expectations Well Anchored

Markets Markets pondering Fed Powell’s assessment on monetary policy dominated trading throughout the whole of last week. It took Powell less than 10 minutes to clarify Fed’s intentions going forward. The Fed’s focus continues to be on bringing inflation back to 2.0% and its aim to do so is unconditional. In the respect, the Fed […]

Aussie Tumbles after Hawkish Powell

The Australian dollar has started the week in negative territory, extending the sharp losses seen on Friday. In the European session, AUD/USD is trading at 0.6849, down 0.63%. US dollar flies after Powell’s rate remarks The US dollar ended the week on a high note, courtesy of Fed Chair’s hawkish speech at the Jackson Hole […]

EuroZone CPI and EU Market Turmoil

Tomorrow, Germany reports CPI figures for July. That gives us a first look at what to expect from inflation data out of the EuroZone to be released on Wednesday. The consensus is for another increase, which would help firm up the case for another 50bps hike by the BCE at their meeting in two weeks. […]

Yen Slumps as Powell Pledges Tighter Policy

The Japanese yen has started the week with sharp losses, with USD/JPY rising as high as 139.00 earlier today. In the European session, USD/JPY is trading at 138.52, up 0.75%. The month of August can’t end soon enough for the yen, as USD/JPY has climbed 4.0%. The yen fell 0.78% on Friday, as Fed Chair […]

Sunset Market Commentary

Powell’s hawkish 9-minute speech on Friday was followed by decisive commentary from ECB’s Schnabel and Villeroy over the weekend. That delivered a one-two punch to core bonds at the start of the new week, keeping the almost one-month old repositioning firmly in place. Bonds fell sharply during early European trading hours but then recovered a […]

New ECB Call

In light of the numerous hawkish comments and sources stories during the weekend, we now change our ECB rate call. We now expect ECB to hike 75bp next week, which will be followed by 50bp in October and 25bp in December, but acknowledge the increased uncertainty on the two latter hike size expectations. This is […]

Euro Rises to Parity as ECB Hints at 75bp Hike

EUR/USD has edged higher today and is trading at the parity line. In the North American sesssion, EUR/USD is trading at 1.0019, up 0.57%. Euro bucks the trend, rises against greenback The US dollar has posted sharp gains against the major currencies, as Fed Chair Powell’s hawkish speech at Jackson Hole left no doubt that […]

Stock Selling Continues, Gold Benefits on Dollar Rally Break, Oil Rises, BTC Back Above $20K for Now

US stocks are declining after a weekend filled with global central bank hawkishness reinforced the message that global central bank tightening will deliver pain to households and businesses. Friday’s sharp selloff is continuing as expectations for the global energy crisis to persist, which will keep inflation risks elevated and lead to a rapid deterioration of […]

Jackson Hole Has Serious Consequences

Fed Chair Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in the US500 index since June. Most risky assets experienced severe drawdowns, and EURUSD returned to the above-parity area. We explain everything you need to know about the Symposium in this article. The most important statements As far as I […]

Eurozone Inflation Set to Hit New Record as Gas Prices Keep Soaring

With the August S&P flash composite purchasing managers index (PMI) signaling that the Euro area economy is on the verge of recession and the problem of energy supply in Europe getting worse day by day, euro traders have been reluctant to bring euro/dollar back above parity permanently. Now they may turn their gaze to Eurozone’s […]