Yen continues to strengthen broadly today, maintaining its position as the best-performing currency of the week so far. Renewed speculation around a possible 50bps rate cut by the Fed has provided an extra lift to the Japanese currency. Additionally, renewed weakness in US and European benchmark yields further supports the Yen’s rally. BoJ is widely…
Euro made a modest recovery following ECB’s decision to cut deposit rate by 25bps, a move widely anticipated by the markets. The rate cut, decided unanimously, brings the deposit rate to 3.75%. During her post-meeting press conference, ECB President Christine Lagarde provided no surprise, reiterating the central bank’s commitment to a “data-dependent” and “meeting-by-meeting” approach….
The stronger-than-anticipated core inflation data initially sent shockwaves through US equities overnight, sparking a deep sell-off. However, tech stocks led a remarkable recovery, with all major indexes finishing in green. Notably, S&P 500 posted a remarkable reversal, ending the day up more than 1% after having fallen over -1% intraday—a feat not seen since 2022….
Dollar strengthened modestly in today’s quiet trading as market participants continued to scale back expectations for a more aggressive 50bps rate cut by Fed this month. However, the greenback’s momentum remains modest as it awaits a crucial test from the upcoming US CPI data this week. Stabilizing risk sentiment is also keeping a lid on…
Asian markets started the week on a weak note, with sharp declines following the broader selloff in US markets after last week’s non-farm payroll report. Adding to the bearish mood was weaker-than-expected inflation data from China, which dampened sentiment further. However, the reaction in the forex market has been somewhat muted, with commodity-linked currencies, like…
