The GBP/USD pair has been extending its upside, trading around 1.2770 during the early European hours. This appreciation for the second successive day on Friday can be attributed to the rising expectations of the US Federal Reserve (Fed) implementing a rate cut in September. According to the CME FedWatch tool, markets are now fully pricing
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,
Jeffrey Schmid, from the Federal Reserve Bank of Kansas City, emphasized the importance of lowering monetary policy if inflation continues to come in low. This adjustment is deemed necessary in order to maintain economic stability and ensure that the dual mandate of the Fed is met. The current stance of Fed policy was described as
The Australian Dollar (AUD) surged to near 0.6580 as the Reserve Bank of Australia (RBA) reiterated its hawkish stance in Thursday’s trading session. This marked an increase of 0.80% in the AUD/USD pair, driven by the RBA’s commitment to keeping interest rates steady at 4.35% while remaining vigilant of potential inflation risks. Additionally, the rise
The recent release of the Bank of Japan’s summary of opinions has been accompanied by some bearish comments from policymakers at the BoJ. However, Deputy Governor Shinichi Uchida has made efforts to soften some of Governor Ueda’s more aggressive remarks, ultimately aiding in market stabilization. The BoJ acknowledges that the probability of reaching the inflation
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
The Reserve Bank of India (RBI) recently made the decision to keep its key interest rate unchanged at 6.50%, which was widely expected by economists and analysts. This decision was made by the Monetary Policy Committee (MPC) after a meeting where four out of six members voted in favor of retaining the rate. The RBI’s
In recent years, the Italian banking sector has been under scrutiny due to the aftermath of a sovereign debt crisis and the need for reform following a government rescue of Banca Monte dei Paschi (BMPS). However, analysts are now eyeing potential opportunities for mergers and acquisitions (M&A) in the sector. European policymakers have longed for
Financial markets are often unpredictable, and the recent burst of volatility serves as a reminder of the risks associated with certain trading strategies. One notable issue is the reliance on leveraged trades such as FX carry trades and U.S. Treasury basis trades. These trades may appear highly profitable in periods of low volatility, but the
The Bank of Japan’s deputy governor, Shinichi Uchida, recently made remarks signaling a cautious approach to hiking interest rates amidst market volatility. In a speech to business leaders in Hakodate, Uchida emphasized the need to maintain current levels of monetary easing due to intense market fluctuations. He mentioned that the recent sharp volatility in domestic
The recent comments from the Bank of Japan’s deputy governor caused USDJPY to increase by more than 2%. The statement mentioned that the central bank would refrain from raising interest rates during periods of market instability. This led to a surge in buyers in the Japanese markets and contributed to USDJPY extending its 4% rebound
The NZD/USD pair has seen a surge in buying pressure after the release of upbeat employment details in New Zealand. The employment data showed an increase in the number of employed people by 0.4% in the second quarter, surpassing market expectations. This positive data has led to a reduction in the likelihood of a rate