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We saw three big central bank decisions this week and the results were consistent with the way things have been going. In recent months, there has been a clear divergence in monetary policy between the Fed and other major central banks. read report
The Fed decision has come and gone and the markets have reacted. In our special report preview of the policy decision, we warned the Fed outlook could lean more hawkish in light of a stronger run of economic data coupled with ongoing inflation risk. read report
The commodity bloc currencies have been hit hard of late and are once again extending declines to multi-month lows against the US Dollar. We are seeing a clear divergence in monetary policy outlooks, with deteriorating economic data in Australia, New Zealand and Canada weighing on the respective currencies. read report
Financial markets are looking at quite a contrast between developments in the US and abroad. Economic data out of the US has been strong relative to what has otherwise been softer data and updates in the global economy. read report
Earlier today, China retail sales and home prices produced discouraging readings, though interestingly enough, global markets have seen little fallout on the data. This seems to be a bit of a theme right now. read report
The US Dollar remains in the driver’s seat into Friday, getting another boost from Thursday developments. On Thursday, it was the combination of rate cuts at the ECB and SNB in contrast to a hotter US producer prices print that sealed the deal. read report
US CPI came in as expected on Wednesday, which has kept markets mostly confined to tighter consolidation. At this point, the data confirms expectations for another rate cut from the Fed next week, though at the same time, introduces the possibility the Fed might be less accommodative in 2025. read report
The ongoing political struggles in Germany and France, along with expectations for an ECB rate cut and more dovish leaning communication at tomorrow’s meeting have kept the Euro well capped into rallies. read report
We’re seeing a lot of consolidation in markets ahead of some key economic data and central bank policy risk later this week. This includes tomorrow’s Bank of Canada decision and US inflation data, and an ECB decision on Thursday. read report
The US Dollar has made a comeback after the latest round of solid economic data out of the US including a slightly better than expected NFP print and above forecast Michigan sentiment read. Odds for a more aggressive Fed rate cut this month have come off the table as a consequence. read report
