XAU/USD may have bottomed out at the beginning of the week – Commerzbank
Share: Gold price shed more than 5% in February. XAU/USD is currently trading at a good $1,840, which puts it around $40 or 2% higher than on Tuesday. It appears that the yellow metal has bottomed out, strategists at Commmerzbank report. There is no longer any expectation of rate cuts this year “Weighing […]
Risk of ‘wrathful Old Testament–style’ reaction from central banks is rising, JPMorgan says
The “gentle and forgiving path” taken by developed-market central banks to rein in inflation over the past year is likely to prove unsuccessful and trigger the need for more forceful, biblical-type action.That’s the view of economists Bruce Kasman, Joseph Lupton and Michael Hanson of JPMorgan Chase & Co. JPM, +1.10%, who described the response of […]
Another 50 bps rate raise due in March – UOB
Share: Economist at UOB Group Lee Sue Ann assesses the latest ECB event on February 2. Key Takeaways “The European Central Bank (ECB), at its first meeting of the year, lifted interest rates by 50bps. It also gave more details on how it intends to shrink its EUR5tn bond portfolio, reaffirming a monthly […]
AUD/USD slides towards 0.7000 as unimpressive China data joins RBA, Fed concerns
AUD/USD renews intraday low amid sour sentiment, mixed data. China Caixin PMI fails to overcome 50.0 mark despite improving in January. Mixed concerns over RBA’s next move, especially after strong inflation and downbeat Retail Sales, weigh on Aussie prices. Cautious mood can weigh on risk-barometer pair ahead of Fed’s verdict. AUD/USD takes offers to refresh […]
ECB’s Rehn sees reasons for ‘significant’ interest rate increases before summer
European Central Bank (ECB) Governing Council member and Governor of Austria’s central bank Olli Rehn made some comments on the central bank’s interest rates policy during his appearance over the weekend. He said that he sees grounds for “significant interest rate increases from the ECB this winter and the coming spring.” Market reaction EUR/USD is […]
ECB and Fed policies to diverge, lifting the Euro – MUFG
Near-term ECB policy outlook has been the driver of EUR volatility this week. A diverging monetary plicy between Fed and ECB is set to boost the Euro, according to economists at MUFG Bank. ECB policy rate to reach 3.00% by the end of this quarter “We are sticking with our forecast for the policy rate […]
Absolute priority should be to bring inflation down to price stability level
Swiss National Bank (SNB) Chairman Thomas Jordan said in a scheduled speech on Friday, “absolute priority should be to bring inflation down to price stability level.” Additional quotes “We should not underestimate second-round effects of inflation.” “Firms are not hesitating to increase prices, not easy to bring inflation back to 2%.” “Once inflation is high, […]
ECB policymakers starting to consider a slower pace of interest-rate hikes
ECB policymakers are starting to consider a slower pace of interest-rate hikes after a likely 50 basis-point step in February, sources say as reported by Bloomberg. “The rapid energy-driven decline in headline inflation is giving the ECB a bit of breathing space, but policymakers will remain focused on persistent underlying pressures for now. If, as […]
We could see another USD/JPY sell-off of roughly 3% – Goldman Sachs
As markets brace for Wednesday’s Bank of Japan (BoJ) monetary policy meetings, multiple investment banks and analysts convey their forecasts for the USD/JPY pair that’s been lately gaining more attention, especially after the BoJ’s tweak to the Yield Curve Control (YCC). Analysts at Goldman Sachs (GS) are from the same lot and anticipate the Yen […]
Don’t expect Yen to weaken much further
Former Bank of Japan (BoJ) board member Sayuri Shirai said on Wednesday, “US interest rates are declining so don’t expect the Yen to weaken much further.” Further comments “Excessive strength in dollar likely to be corrected.” “Households and companies’ inflation expectations are extremely high but market forecasts are below 2%, not much change in inflation […]