Foreign Exchange

Rate Cuts Begin

By Chris Butler / 11 Jun 2024

Last week we saw the first of potentially more rate cuts as both the BoC and ECB cut rates by 25bps. I know our reports have been looking at rate cuts being pushed deeper and deeper into 2024 and the NFP number last week seemed to continue its signal of higher for longer.
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Risk of sentiment mutes any positive moves

By Chris Butler / 04 Jun 2024

Last week the markets were muted despite inflationary data remaining stubbornly high. AUD and NZD were the winners following strong numbers but the real risk off sentiment for the week muted any major moves.
The post Risk of sentiment mutes any positive moves first appeared on trademakers.

Rate Cuts Looking Deferred

By Chris Butler / 30 May 2024

Last week the markets were influenced by impending rate cuts or lack of. GBP regained the 1.27 level as any imminent rate cuts seem to have been pushed back from June to the earliest August. This was substantiated by the most recent inflationary numbers coupled with the unexpected election in July.
The post Rate Cuts Looking Deferred first appeared on trademakers.

Risk-on continues its trend

By Chris Butler / 22 May 2024

Last week we saw a return to a risk-on environment. The US Inflation report muted any calls for US interest rates to move higher leading to an equity rally and risk-on currency move.
The post Risk-on continues its trend first appeared on trademakers.

Currencies More Subdued (Apart from Yen)

By Chris Butler / 15 May 2024

Last week was a far more subdued week as market eyes were elsewhere. Global markets rallied pushing stocks to new highs in Europe and US markets posting substantial gains.
The post Currencies More Subdued (Apart from Yen) first appeared on trademakers.

BoJ Intervenes to Shore Up Yen

By Chris Butler / 07 May 2024

Last week we saw a reversal of the dollar strength which saw once again market expectations of 2 or more rate cuts in 2024 back on the table. With disappointing job numbers and a less hawkish than expected Powel the dollar tumbled away its gains and stock markets were buoyed.
The post BoJ Intervenes to Shore Up Yen first appeared on trademakers.

Yen Collapse; FOMC in Focus

By Chris Butler / 01 May 2024

Last week we saw the expected de-escalation in the Iran – Israel war and a risk on rally ensued. The Yen had sharp sell off. Firstly, the BoJ kept rates unchanged, and a dovish tone then compounded the fall closing the week through 158.
The post Yen Collapse; FOMC in Focus first appeared on trademakers.

Inflationary Pressure Resurfaces

By Chris Butler / 10 Apr 2024

Last week the US Dollar remained in a tight range as other geopolitical news took the fore. Oil prices surged along with metals such as Copper reigniting inflationary warning signs which could leave central banks powerless to reduce rates in the coming months.
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Quiet Markets with a Shorter Week

By Chris Butler / 02 Apr 2024

Last week the markets failed to break out in any direction. With the shorter week for Easter and lack of economic data we ended the week broadly where we started. Dollar tried to continue its trajectory higher but failed to show any real move by the end of the week US Data came in mixed…
The post Quiet Markets with a Shorter Week first appeared on trademakers.

BOJ Made Its Move

By Chris Butler / 27 Mar 2024

Last week the market was data heavy with several Central Banks making their decisions. The BOJ finally made its move and lifted rates from negative territory for the first time in years. The main headline of course was the Fed which although kept rates unchanged the dovish tone came through.
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