europefx Key Takeaways 💹 U.S. business activity accelerated in May to a two-year high 📈 Federal Reserve officials express confidence in easing price pressures 📉 Market exaggerating chances of two rate cuts this year based on FOMC comments 💶 Euro rose with positive economic data, nearing mid-May’s high 🇯🇵 Japanese factory activity expands for the first … Read more
Key Takeaways: 💶 Euro rose after euro zone business activity expanded 📊 Euro zone manufacturing showed recovery, led by external demand 💱 Euro rose against the pound and the dollar 💵 Sterling was steady as British election announced 🏦 Market expects Labour Party to win election 🇯🇵 Yen slightly stronger against the dollar 📉 Dollar … Read more
Key Takeaways: 💱 Morgan Stanley recommends short positions in EUR/GBP with a target at 0.82 📈 Anticipated upswing in UK economic growth momentum to benefit trade 🌍 Policy divergence between BoE and ECB expected to widen rate differentials 🏦 Central banks’ monetary policies crucial in shaping currency valuations 💶 Morgan Stanley predicts the EUR/GBP exchange … Read more
Key Takeaways: 💰 Bank of England allotted a record amount in a short-term repo operation 📆 Weekly repo helps keep money market rates close to Bank Rate 📈 Quantitative tightening program involves selling government bonds purchased in QE 🤝 Increase in repo facility usage seen as positive by BoE Governor Bailey 💵 The operation helps … Read more
Key Takeaways 💼 UBS shifts Swiss franc status from "least preferred" to "neutral" 📈 U.S. dollar expected to maintain strength 🗓 Federal Reserve rate-cutting cycle to start in September 🌍 Geopolitical uncertainties likely to persist 💱 UBS encourages investment in currency crosses 🔄 Swiss franc reassessment reflects changing market perception 📈 Anticipates intermittent Dollar value … Read more
Key Takeaways: 💼 UK general election set for July 4 instead of autumn as expected 📉 GBP/USD implied volatility increased by around 20 basis points to 6.20 📊 Labour Party leading over Conservative Party in opinion polls 🏴 Minimal risks from current UK political events such as Scottish referendum 📈 Market expects minor fluctuations in … Read more
Financial Market Updates: 💵 The dollar remains near a one-week high after Fed meeting minutes suggest willingness for rate hikes 📈 New Zealand dollar continues to climb following unexpected rise in local retail sales and hawkish central bank guidance 🇬🇧 Sterling stays firm after jumping to one-month peak due to hotter-than-expected inflation and UK parliamentary … Read more
Key Takeaways: 💵 Asia FX weakened as Fed minutes boosted the dollar 🌏 Concerns over U.S.-China trade war affected Asian market sentiment 🔒 Dollar steadied in Asian trade after strong overnight gains ⬆️ Fed officials concerned over inflation, hinting at potential rate hikes 📉 Markets pricing in longer high interest rates scenario 🇦🇺 Australian dollar … Read more
Key Takeaways 💵 UBS predicts continued USD strength in foreign exchange environment 📊 Equities and risky assets performing well with low implied volatility 📉 Dollar appears to be undershooting front-end rates 🏦 Federal Reserve may not cut rates in September as expected by the market 💼 UBS recommends focusing on Swiss Franc crosses for carry … Read more
Key Takeaways 💲 The U.S. dollar is stable before the release of Federal Reserve meeting minutes. 📉 Recent economic data may hint at U.S. rate cuts but caution is advised by some Fed officials. 🇬🇧 Sterling gained as U.K. inflation was lower than anticipated, reducing chances of BOE rate cut. 🇪🇺 EUR/USD trades lower as … Read more