2 days ago

CHF rises on rate-hike bets #usdchf #snb #fx

The Swiss franc is on course for its biggest two-day rally against the euro since 2015, fueled by speculation Switzerland’s central bank could raise rates to cool inflation.


12 days ago

#Euro / #Dollar parity more likely as #stagflation risks rise #forex #macro

The Ukrainian crisis is getting worse, damping sentiment and leading to a surge in commodity prices. Investors are concerned about the rising stagflation risks as a result, which hurts big exporters like Europe and Japan. The euro is underperforming the dollar by more than 7% since the start of the year. But is the move over? To many not yet. 60% of respondents to a Bloomberg survey believe the could fall further, expecting EURUSD to bottom near the 1.00 level. 


15 days ago

EURUSD jumps upon Villeroy's remarks #europe #fx #trading

European Central Bank Governing Council member Francois Villeroy de Galhau said the conditions are met for interest rates to be raised back above zero by the end of this year if the euro-zone economy doesn’t suffer another setback. Money markets are pricing in a 25-point increase in July and raised bets on the pace of tightening beyond that, seeing 95 basis points by year-end. German two-year bond yields hit 0.35% following Villeroy's comments and the euro jumped against the dollar.

#Bonds #Forex

16 days ago

#Two BOE officials see guidance for more hikes inappropriate #pound#fx #inflation #rates

The BoE hiked rates to 1%, their highest level in more than a decade, but sounded less hawkish than expected. While 3 out of 9 policymakers voted for a 50 bps hike, six voted for 25 bps, and among whom, two saw more hikes as inappropriate. Officials sounded concerned about the pace of growth, expecting the economy to grow by only 1% in Q4, shrink by 0.25% in 2023, and stagnate for the years ahead, limiting BoE's ability to raise interest rates, (maybe) even if inflation stays high. GBPUSD plummeted following the announcement, losing more than 1.3% 


16 days ago

US #dollar looks weaker post #fedmeeting #fx #eurusd

The US central bank’s policy-setting Federal Open Market Committee on Wednesday voted unanimously to increase the benchmark rate by 50 bps in an attempt to avoid an overheat in the economy. The dollar which reached a multi-year high against major currencies on the back of very aggressive tightening, dropped yesterday after Fed's Powell downplayed the likelihood of a 75 point rate hike, taking away major support for the dollar. A weakness in the dollar was a big boost for the euro, taking it 100 pips higher.