BOE’s Bailey: We expect inflation to come down rapidly this year
We have a very tight labour market (Bailey) There is substantial further monetary policy tightening still to come (Pill) There is no room for complacency (Pill) Anticipates an extended period of weakness in UK economic activity (Pill) Economic theory shows inflation uncertainty should be met with more forceful action (Haskel) There isn’t anything new here […]
USD/JPY to 120 looks like the target this year – ING
ING notes that: “The Bank of Japan is now garnering much more focus than it has in years. Most pressing is the replacement of Governor Haruhiko Kuroda, who leaves in April. A successor will be presented to parliament on 10 February. The favourite, Deputy Governor Masayoshi Amamiya, is seen as the dovish continuity candidate.” “Any […]
AUD/USD to rise towards 0.72 in the latter half of the year – Rabobank
Share: On Friday, AUD/USD dove back below the 0.700 level. Economists at Rabobank continue to see scope for AUD/USD to strengthen to 0.72 towards the back half of this year. AUD/USD to trade mostly in the 0.69-0.70 area on a three-month view “An as expected 25 bps rate hike from the RBA this […]
The Year of the Rabbit Marks New Focus for Finalto Asia
The start of a New Year is a time for reflection, and as we celebrate the Year of the Rabbit, we look back on the previous 12 months. We chatted with CEO of Finalto Asia Alex MacKinnon, Head of Institutional Sales Alex Yap, and Chief Market Analyst Neil Wilson to get their views on the […]
US treasury auctions off $43 billion a five year notes at a high yield of 3.53%
WI level at the time of the auction 3.554% Auction Grade: A Once again, the international demand comes to the rescue taking 11% more than the 6 month average. The Domestic demand was marginally lower. Dealers have a low 8.8% of the leftovers. Bid Bid In a market, a bid is a price at which […]
USD/JPY will fall by the end of the year – HSBC
Economists at HSBC think USD/JPY will fall by year-end 2023 on a range of factors from future BoJ policy announcements to improvements in Japan’s balance of payments and a revival of the JPY’s “safe haven” status. A revival of Yen’s ‘safe haven’ status could weigh on USD/JPY “There are many upcoming events that could lead […]
More from the Feds Waller: Fed will have to keep rates high and not cut by year end
The Fed will have to keep rates high and not cut rates by the end of 2023 Market perception of terminal rate is not far from where we are Market expectations for rate cuts later this year is driven by optimism inflation will melt away The Fed does not expect inflation Inflation Inflation is defined […]
The 10 year yield has a floor in place
The US 10 year yield moved to a new year low at 3.417%. That took the yield just below the 50% of the move up from the August 2022 low at 3.426%, but remained above the December low yield of 3.404%. US 10 year yields ping ponging in a 50 bp range The combination is […]
Levels below 120.00 are plausible for later this year – MUFG
According to analysts at MUFG Bank, the Japanese Yen is set to gain further ground on the back of monetary policy expectations from the Bank of Japan. They consider possible a slide under 120.00 for later in 2023. Key quotes: “USD/JPY has fallen further still today and is now 15.5% down from the peak on […]
U.S. Treasury auctions of $18 billion of 30 year bonds at a high yield of 3.585%
WI level came in at 3.609% just ahead of the auction. High-yield 3.585% WI level at the time of the auction 3.609% Tail -2.4 bps vs six-month average of -0.2 basis points Bid to cover 2.45X versus six-month average of 2.37X Directs (measure of domestic demand) 16.33% vs. six-month average of 19.0% Indirects (measure of […]