Cromwell FX Market View Surprise Hawkish ECB


This post was originally published on Trademakers

courtesy of trademakers

Another volatile week as Central Bank hawkishness came to the fore. Traders had seen the Fed being Hawkish for sometime but last week was the turn of the BoE and ECB.


The ECB acknowledged inflation is not transitory and their comments moved in a far more hawkish direction. President Christine Lagarde declined to repeat her guidance that rate hike was “very unlikely” this year. Then, Governing Council member Olli Rehn was quoted on Friday that “if there are no setbacks in the pandemic or the geopolitical situation, it would logical for the ECB to hike its key interest rate at latest next year.” Markets are now expecting the deposit rate to be raised from the current -0.50% to 0.00% by year end


The BoE also surprised during the week. The 25bps rate rise was expected but the split of 5-4 with 4 members voting for a 50bps rate rise was unexpected sending the GBP higher.


Friday saw a much stronger than expected non-farm payrolls report which saw large job growth and faster wages growth.


Oil remains simply unstoppable, as it registered its seventh consecutive positive week with a move of over +30%. Shorts continue to get burnt as supply chain issues keep prices elevated. Last week WTI rallied another 5.4% to close the week at $91.95 and is now gunning for triple-digit levels.


The week ahead is relatively quiet data wise with traders mostly digesting the previous weeks news.

Weekly Majors Market Performance


What is Cromwell FX?

Cromwell FX is a quantitative FX manager offering superior risk adjusted returns. The portfolio is the most liquid pairs . The strategy is fully automated and adhere to strict rick management procedures to control leverage and position limits.

The post

Cromwell FX Market View

Surprise Hawkish ECB

appeared first on JP Fund Services.

The post Cromwell FX Market View Surprise Hawkish ECB first appeared on trademakers.

Connect with SGT Markets

Follow us for the latest news & insights

Related Articles


Central Banks Back in Focus


US Dollar Remains in Control


Mixed Data and Mixed Signals


Jackson Hole Weekend


US Dollar continues to rise along with China woes


US Dollar and Yields Rally


Central Banks Nearing Inflection Point?


BCIF and SGT Markets Partner to Offer Unique Blue-Chip Crypto Investment Strategy


Fed and ECB Meet Expectations


Inflation Slowing and Fed on The Horizon


USD Weakness as Demand for Dollars Slow


Further Rate Rises on The Horizon