Category: Market Analysis

  • Week Ahead: Inflation, Rate Cuts & Economic Signals

    Investors await U.S. inflation data, expecting potential Fed rate cuts. Recent jobs data reduced the chance of a 50 bp cut at the September FOMC meeting. Treasury yields fell, with the 2-10-year yield curve showing a positive slope for the first time since July 2022. The European Central Bank is likely to cut rates at…

  • Week Ahead: Markets in Motion

    As summer transitions to fall, monetary policy and political events will significantly shape the business and investment environment. The market, initially expecting aggressive rate cuts in 2023, has now adjusted closer to central bank signals, with global rates rising and the dollar regaining strength in early 2024. The Federal Reserve is expected to be one…

  • Week Ahead: Fed Easing Expectations & Currency Shifts

    In the middle of last week, the Fed funds futures discounted 103 basis points of cuts for this year. After some movement following Fed Chair Powell’s remarks, the market finished the week with 104 basis points of cuts priced into the Fed funds futures curve. The two-year note yield settled at a three-week low, and…

  • Week Ahead: The Jackson Hole Symposium

    Generally known as Jackson Hole, it is an annual conference of global central bankers. This year’s topic is Reassessing the Effectiveness and Transmission of Monetary Policy. All eyes are on the Jackson Hole Symposium as markets anticipate imminent Federal Reserve rate cuts. PMIs take the lead for European economies, with surveys assessing the level of…

  • Week Ahead: Price Action vs. Surprises in U.S. CPI

    A deluge of economic data is expected to shape market sentiment in the coming days. Investors will closely scrutinise key indicators from the United States, Europe, and Asia. Following recent weak U.S. jobs data, market participants will be keenly focused on inflation figures and other economic metrics for signs of a potential recession. Meanwhile, in…

  • Week Ahead: Central Bank Drives Currencies

    U.S.A. Fed Easing to Weigh on USD The US Dollar (USD) is expected to weaken as the Federal Reserve (Fed) transitions towards a more accommodative monetary policy stance. The central bank’s anticipated rate cuts aim to bolster economic growth, reducing the USD’s appeal as a safe-haven asset. Economic Headwinds While the US economy has shown…