EURJPY: ECB and BOJ Policy Divergence

ECB President Christine Lagarde’s speech at the ECB Forum was today largely a rehash of what she communicated at the ECB press conference earlier this month. She said that the ECB intends to raise interest rates by 25 bps in July and there is an option to raise even more in September and move faster … Read more

Wells Fargo: The Winner Out of US Bank Stocks

Recent weakening of commodity prices and signs of slowing economic growth tempered market expectation over the Fed’s rate hike. Among metals, copper suffered the largest weekly fall within the year, at over -6%. In energy sector, UK gas and natural gas are down over 15th% and 10% respectively, while crude oil also closed lower for … Read more

Weekly wrap up! – 24 June 2022

European bond markets sold off as stock markets bounced. Bundesbank President Nagel warned yesterday that central banks must not respond to higher inflation with “too little, too late” and that “if monetary policy falls behind the curve, even stronger hikes in interest rates could become necessary to get inflation under … Read more

EURCHF set to clear 1.01?

The Swiss Franc has been one of the strongest currencies this month with only the USD doing better, albeit by a small margin, supported by strong risk-off flows which has seen Equities and Commodity prices fall strongly so far in June – US500.F fell about 11% before paring some of its losses this week while … Read more

Market Update – June 24 – USD & Yields slips, Stocks tick higher

USD slips from highs (USDIndex 104.00), Stocks closed higher (NASDAQ +1.62%) Yields slipped again (-1.66%) after no new news from Powell Asian shares stronger (Hang Seng +2.24%, Nikkei +1.23%) Oil holds at lows, Gold dipped & BTC picked up. Ukraine gained EU candidacy status. UK PM Johnson’s Conservatives lost the two by-elections, triggering the resignation … Read more

Risk Sensitive Assets Struggling to Find Demand

Equities erased yesterday’s sharp losses, after Fed Chair Jerome Powell spoke on Capitol Hill about the state of monetary policy. In his remarks, Powell indicated that the American economy remains strong and is ready to absorb tight monetary policy. He also stated that additional interest rate hikes were still appropriate and the pace of the … Read more

Market Update – June 23 – USD & Yields slip, Oil continues decline following Powell

USD slips from highs (USDIndex 103.80), Stocks closed flat (NASDAQ & DJIA -0.15%) Yields tanked (-4%) after Powell said FED were “strongly committed” to the inflation fight and that recession was “certainly possible”. Asian shares mixed (Hang Seng +1.64%, Nikkei +0.8%, Kospi -0.7%) Oil slumped another -2% and Gold & BTC slide sideways. Biden announced … Read more