There was only a brief reprieve yesterday, before Fed policymaker Brainard’s comments helped to switch the mood back in favour of risk trades. The dollar is now stumbling to fresh lows post-CPI as the selling from last week carries over. EUR/USD is now up to its highest levels in over.
And the lack of consistency isn’t a good look on the dollar as we approach a new phase in the central bank tightening cycle. What is arguably clear is that the Fed may look to tone down its aggressive approach by slowing down the pace of rate hikes. However, such.
USD/JPY rose back towards 140.50 in Tokyo morning trade. The only fresh data from Japan was Q3 GDP (preliminary) which was a huge miss (see bullets above). If you are looking for a reason for the weaker yen on the session so far this’ll work. It adds to the case.
I posted briefly on Morgan Stanley’s view yesterday: And a few more snippets were added later on Monday : More now: US dollar index will fall to 104 by the end of 2023, dollar is expected to peak as uncertainty around the Fed rate tightening abates, with the Fed forecast.
This is an interesting piece on what might be a hiccup for inflation in Australia. That is, if supply is constrained prices will rise. And that’ll be something for the Reserve Bank of Australia to ponder. — AUD has been shoved around by Federal Reserve developments, maybe this local factor.
Markets: Gold up $1 to $1773 US 10-year yields up 4.3 bps to 3.87% WTI crude oil d own $3.65 to $85.31 USD leads, JPY lags S&P 500 down 0.8% Back-and-fill was the theme with a light economic calendar and following the incredible drop in the US dollar late last.
Federal Reserve Bank of New York President John Williams, a core FOMC member (The head of the NY Fed has a permanent vote on the Federal Open Market Committee) will be speaking during the early Asia morning (timing below). Fed Governor Waller kicked off a busy day in Asia on.
You would think after the best two-day stretch for stocks in years there would be some back-and-fill today in markets, especially after the Fed’s Waller poured a bit of cold water on the thesis. Instead, the US dollar is flat today on most fronts. The Nasdaq is now back to.
The currency team at Deutsche Bank is out with a big call today, saying that the US dollar has peaked. Analysts there argue that the newsflow on Thursday and Friday was materially negative for the US dollar and marks a top. The drivers for dollar strength this year were: Safe.
With Fed Governor bringing the fire truck in to douse the flames of a too hot stock market over the weekend, the major indices are opening weaker. Yields are higher which has pressured the Nasdaq stocks. The flow of funds is back into the Dow stocks after they relatively underperformed.
Headlines: Markets: USD leads, JPY lags on the day European equities slightly higher; S&P 500 futures down 0.3% US 10-year yields up 5.6 bps to 3.885% Gold down 0.8% to $1,757.20 WTI crude down 1.2% to $87.87 Bitcoin flat at $16,754 It was a quiet session for the most part,.
Last week the U.S. CPI data came below expectations suggesting the Fed might slow down the pace of tightening, but this doesn’t mean the fight against inflation is over. There has to be a clear sign of inflation cooling down. The market now expects a 50bps rate hike in December..