Euro Elections Prove to Be Troublesome

Last week we had the results of the latest European Elections and it delivered. The Euro was the worst performer of the week as President Macron chose to call a snap election on the shortest timetable allowable…
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Rate Cuts Begin

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

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.
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Rate Cuts Looking Deferred

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.
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Risk-on continues its trend

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.
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Currencies More Subdued (Apart from Yen)

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.
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BoJ Intervenes to Shore Up Yen

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.
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Yen Collapse; FOMC in Focus

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.
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Inflationary Pressure Resurfaces

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

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…
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BOJ Made Its Move

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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USD Reverse

Last week the dollar ended the week the strongest. This was in contrast to the previous week where we felt the trend had reached a turning point. Despite the reversal the Dollar remains well within the range pointing to the market waiting for Fed confirmation before the market makes its next move.
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Dollar Loss as Yen Rises

Last week we finally saw a change from the trend as Dollar was the weeks worst performer. A cooling US job market and Powell signalling a June rate cut sent the US Dollar tumbling. during his semi-annual statement he hinted that the Fed is not far from the point of comfort to ease monetary policy.
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Trend Continuation for the Week

Last week we saw a continuation of the previous few weeks especially in equities as they moved to new highs. The FX market has lost focus recently as eyes are on other areas of the market. Equities are rallying and Crypto has awoken with a bang.
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FX Volatility Lower For The Week

Last week was a quieter week for FX markets as there were little global data with only the PMI the main releases. The continued rolling back by the Fed and ECB of any rate cuts has seen a strong USD theme over the last few weeks and months. Last week saw a small respite…
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Inflation Continues to Quell Fed Cuts

Last week we saw the US inflation report come in higher than expected. YoY dropped to 3.1% but it fell less than markets expected. The led the DXY Index to new 3-month highs and push lower yielding currencies like Yen to new lows.
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Quiet week with volatility on the horizon

Last week was a quiet one as lack of further data coupled with the expectations of early rate cuts from the Fed diminishing. The Fed is currently holding rates with a March cut priced at 20% compared to 65% at the beginning of 2024.
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Fed to cut or not to cut

Last week the US Dollar claimed the title of strongest currency of the week as the markets priced in rate cut rationale began to dissipate. This was also coupled with a strong risk on week as equities continued their stella run.
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Fed Cuts Priced in Now

Last week the US Dollar gained slightly as we saw stiff resistance being met but the overall trend remains in place. Economic data was mixed including a stronger GDP number but softer CPE. The DXY gained a marginal 0.2% during the week.
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Reversal of Yields

Last week we saw a reversal of the previous week in Yields. Equities continue to remain strong as S&P reached new all-time highs, but bonds sold off.
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