US:The Fed left interest rates unchanged as expected.The macroeconomic projections were revised higher as the economy showed much stronger resilience than expected and the Dot Plot showed that the majority of members still expects another rate hike by the end of the...
European equities hold lower at the open, PMI data to come
Eurostoxx -0.7%Germany DAX -0.5%France CAC 40 -1.0%UK FTSE -0.3%Spain IBEX -0.6%Italy FTSE MIB -0.6%It's not like European stocks didn't endure a rough time yesterday but the selling is continuing amid higher bond yields this week. The only positive is that the...
BOJ’s Ueda: Could consider easy policy exit when achievement of 2% inflation is in sight
We could consider ending yield curve control and modify negative interest rate policyBut only when we judge that achievement of 2% inflation is in sightWe are not in a situation now to decide on the order of change in policy toolsAnd based on his earlier remarks here,...
Spain Q2 final GDP +0.5% vs +0.4% q/q prelim
> Spain Q2 final GDP +0.5% vs +0.4% q/q prelim Latest data released by INE - 22 September 2023 <!--> Justin Low Friday, 22/09/2023 | 07:00 GMT-0 22/09/2023 | 07:00 GMT-0 --> <!--> , ADVERTISEMENT - CONTINUE READING BELOW --> Tags <!-->...
USD/JPY extends to fresh highs on the day as Ueda doesn’t walk the talk
USD/JPY 5 mins chartAfter he supposedly let slip on a "quiet exit" in the interview here two weekends ago, there were some quarters of the market that reacted strongly in thinking that a change is afoot at the BOJ. But when it comes down to the line, Ueda is once...
BOJ governor Ueda: Will not hesitate to take additional easing measures if necessary
We are yet to foresee inflation reaching 2% in a stable mannerJapan economy is recovering moderatelyWages and price setting behaviour has been more positive recently(clarifies about interview here) I said that we need to patiently continue easy policyOn that last...
GBPUSD Technical Analysis – The pair broke a key level
US:The Fed left interest rates unchanged as expected.The macroeconomic projections were revised higher as the economy showed much stronger resilience than expected and the Dot Plot showed that the majority of members still expects another rate hike by the end of the...
UK August retail sales +0.4% vs +0.5% m/m expected
Prior -1.2%; revised to -1.1%Retail sales -1.4% vs -1.2% y/y expectedPrior -3.2%; revised to -3.1%Retail sales (ex autos, fuel) +0.6% vs +0.6% m/m expectedPrior -1.4%Retail sales (ex autos, fuel) -1.4% vs -1.3% y/y expectedPrior -3.4%; revised to -3.3%It's a slight...
FX option expiries for 22 September 10am New York cut
There is just one to take note of, as highlighted in bold. That being for GBP/USD at 1.2250 but the level doesn't really hold any technical significance. As such, the expiries may not factor into play all too much especially as we have UK retail sales and PMI data...
Morgan Stanley sees no more BOE rate hikes for the rest of the year
The firm sees the BOE keeping the bank rate steady at 5.25% until year-end before starting to cut rates in May 2024. They see the bank rate falling to 4.00% by the end of next year. They now join the likes of Goldman Sachs, BNP Paribas, and Barclays in making a...
PMI data in focus in Europe today
The dollar sits in a solid spot amid all the events so far this week but there is still one final piece of the puzzle. The PMI data today will be a key focus point and softer readings there might offer some pushback against soaring bond yields on the week, although I...
Barclays cuts BOE terminal rate forecast to 5.25% from 5.50% previously
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
BNP Paribas lowers BOE terminal rate forecast to 5.25% from 5.50% previously
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
Buy the rumour, sell the fact for the Japanese yen
There was some profit-taking and selling in USD/JPY yesterday despite a higher move in Treasury yields. And I would attribute that to fears ahead of the BOJ today, just in case the Japanese central bank produced a more hawkish message. But alas, they didn't deliver on...
The bond market continues to hog the spotlight
US Treasury 10-year yields (%) monthly chartThat is the highest in 16 years as the rout in bonds continue to gather pace on the week. Traders were already on edge earlier this week but the Fed vindicated the selling momentum and has seen yields shoot higher as a...
Moody’s have downgraded some Chinese property developer firms
Moody's have downgraded several Chinese property developersMoody's recently lowered the outlook of the sector.Has now downgraded the credit ratings of property developers including: China Resources Land, China Overseas Land and Investment, China Vanke, Greentown...
JPMorgan will include India in its widely tracked emerging market debt index
Reuters carry the news on JPMorgan announcing on Friday that it will include India in its widely tracked emerging market debt index.India's local bonds will be included in the Government Bond Index-Emerging Markets (GBI-EM) index and the index suite, benchmarked by...
Hedge fund manager Ackman expects even higher long term US rates
Bill Ackman is the founder and CEO of Pershing Square Capital Management.He's posted a long tweet:Some points he makes:The world is a structurally different place than it was. The peace dividend is no more. The long-term deflationary effects of outsourcing production...
Next on the day’s agenda from the Bank of Japan is Governor Ueda’s press conference
The Bank of Japan kept its main policy levers unchanged short-term rates minus 0.1%10-year Japanese government bond (JGB) yields to move around 0%retained a reference to the fluctuation range for 10-year bond yields to "around plus or minus 0.5 percentage point"will...
Yuan is higher after some Chinese banks sold USD/CNY
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...