Market Outlook

US Treasuries extended their rally, with the policy-sensitive two-year yields hitting a 14-month low, as market expectations for Federal Reserve rate cuts intensified following Wednesday’s decision. Swaps traders now anticipate three rate cuts this year, up from two previously. The broader risk-off sentiment was driven by data revealing that US weekly unemployment claims reached a near one-year […]

US equity futures surged on Thursday following the Federal Reserve’s indication of a potential rate cut in September. This development comes as the Bank of Japan (BOJ) Governor Kazuo Ueda announced the possibility of further rate increases, contingent on the central bank’s inflation forecasts. The yen hit 148.51 against the dollar, its highest level since

This week, markets are poised for pivotal monetary policy decisions from the Federal Reserve, Bank of Japan (BOJ), and Bank of England (BOE), alongside crucial economic data from the Eurozone, including GDP and CPI figures. Yen Weakens Amid BOJ Speculation The yen weakened against all its Group-of-10 peers as the BOJ began its two-day meeting,

Global markets brace for significant monetary policy decisions this week from Japan, the US, and the UK, following the yen’s recent surge fueled by expectations of a rate hike from the Bank of Japan (BOJ). Yen Strengthens on Tightening Bets The yen advanced against all its Group of 10 peers on Monday, driven by speculation

Traders are weighing signs of a resilient U.S. economy against increasing calls for quicker rate cuts from the Federal Reserve. The swaps market is currently pricing in the first rate cut for September. Economic growth in the second quarter exceeded forecasts, showcasing that demand remains robust despite higher borrowing costs. A key measure of underlying inflation rose

Investors are keenly awaiting U.S. GDP and initial jobless claims data, set to be released later Thursday, for further insights into the economy’s health. The former New York Federal Reserve chief has called for lower borrowing costs, advocating for a rate cut at next week’s meeting. While some analysts view this potential move as a proactive measure

The yen appreciated beyond 155 per dollar for the first time since early June, as traders recalibrated their positions in anticipation of a potential rate hike by the Bank of Japan (BOJ) in the coming months, if not at its policy meeting next week. Although only about 30% of BOJ analysts expect a rate increase on July

Traders are reevaluating the so-called Trump trades as Vice President Kamala Harris garners support among Democrats, juxtaposing political developments with the anticipated economic data and future U.S. interest rate trajectory. This recalibration occurs ahead of a significant week marked by a series of auctions, a report on U.S. economic growth, and an update on the Federal

Asian currencies declined on Friday as economic and geopolitical risks overshadowed the market’s optimism about potential interest-rate cuts. The disappointment stemmed from China’s Third Plenum, which failed to convince investors of a renewed growth impetus. Today’s negative price action in Asian equities is more attributed to concerns over new US restrictions on the semiconductor sector and

Gold’s upward momentum might face resistance if the US Dollar makes a strong comeback driven by risk aversion. A modest rebound in US Treasury bond yields could also hinder gold’s advance. The renewed strength in gold prices early Thursday is attributed to escalating US-China trade tensions, which are expected to intensify with a likely Trump presidency.