In a recent analysis by ARK Invest Founder, CEO, and CIO Cathie Wood, it was suggested that the 10-year Treasury bond yield should be around 2% based on the metal-to-gold ratio. This contrasts with the current yield of 3.8% and last October’s peak of 5%. Wood’s observation raises questions about the appropriate Fed funds rate,
Forecasts
The recent rate hikes in Japan have raised questions regarding their impact on the stock market. While traditionally, higher rates on the yen should be bullish for the yen and bearish for the USD/YEN pair, the market has shown unexpected behavior. Following the first rate hike, the USD/YEN pair actually rallied, indicating a deviation from
Currency carry trades, a popular strategy in the foreign exchange (FX) market, involve borrowing in a low-interest-rate environment to invest in a higher-interest-rate environment. This practice can be lucrative for investors seeking higher returns, but it also comes with substantial risks. In the case of the USD/JPY pair, carry trades typically involve being long on
The Bank of Japan is set to release its Summary of Opinions on Thursday, August 8th. This summary will provide investors with a deeper understanding of the July monetary policy decision and the perspectives of the Board members regarding the interest rate trajectory. It is expected that support for multiple interest rate hikes could potentially
When it comes to making financial decisions, it is crucial to conduct thorough due diligence. The information we come across on the internet, including news, analysis, and opinions, should not be taken at face value. It is essential to do your own research, seek advice from experts, and carefully consider all factors before taking any
In July, the Japanese government revised its growth forecasts for the fiscal year ending March 2025 from 1.3% to 0.9%. The government expressed concerns about the weak Yen and its impact on households’ purchasing power. The private-sector members of the council also discussed the new growth forecasts in a meeting, acknowledging the challenges faced by
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The stock futures showed a modest rise on Monday, signaling a potential shift in the market following a week of volatility. Last week, the S&P 500 and Nasdaq saw declines, while the Dow and Russell 2000 experienced gains. Despite these fluctuations, market strategists are optimistic about the increased participation across sectors, viewing it as a
Some economists are suggesting that implementing quantitative tightening (QT) could potentially strengthen the Yen in a more sustainable manner. The plan by the Bank of Japan (BoJ) to announce cuts to purchases of Japanese Government Bonds (JGB) in July is seen as a move that could reduce interest rate differentials with the US dollar, ultimately
The Chief Economist of the Bank of England (BoE), Huw Pill, recently conveyed a hawkish tone, expressing concerns about the strength of services inflation and wage growth. This indicates a level of discomfort in the current economic conditions. Additionally, Jonathan Haskel, an external member of the Monetary Policy Committee (MPC), highlighted a higher-for-longer stance due
Analyzing the recent economic indicators for Australia, there seems to be a mixed outlook regarding the future of producer prices in the country. While some experts predict a potential interest rate hike by the Reserve Bank of Australia (RBA) in August, others forecast a rate cut later in the year. This uncertainty has been fueled
In today’s fast-paced financial industry, it is crucial for investors to conduct thorough due diligence before making any investment decisions. The content provided on websites like FX Empire offers general news, analysis, and opinions, but it is important to note that this information is intended for educational and research purposes only. Investors should not rely