The US dollar rallied, while equities pulled back yesterday, after the Fed signaled that interest rates are likely to start rising in 2023. Today, the central bank torch will be passed to the SNB, while tomorrow, during the Asian session, it will be the turn of the BoJ to decide on monetary policy.

USD STRENGTHENS, EQUITIES RETREAT ON HAWKISH FED

The US dollar surged against all the other major currencies on Wednesday and during the Asian session Thursday. It gained the most ground versus CHF, EUR, AUD and NZD.

The strengthening of the dollar across the board suggests that markets turned risk-off at some point yesterday or…


Today, market participants are likely to keep their gaze locked on the FOMC decision. Due to last week’s inflation data suggesting that the acceleration may have been due to transitory factors, we don’t expect any action. However, as several officials have already expressed their desire to have a discussion over QE tapering at one of the upcoming meetings, it would be interesting to see whether this took place now or not. The new “dot plot” may also attract special attention.

WILL THE FED DISCUSS A QE TAPERING AT TODAY’S GATHERING?

The US dollar traded higher against most of the other major currencies on Tuesday and during the Asian session Wednesday…


Most major EU and US indices traded higher yesterday, with the S&P 500 and the Nasdaq hitting fresh record highs. In our view, this means that following last week’s US CPIs, investors have been more comfortable in increasing their risk exposure, even with the Fed decision drawing closer. The decision will be made public tomorrow, and it would be interesting to see whether there will be any discussion over a potential QE tapering.

S&P 500 AND NASDAQ HIT FRESH RECORDS AHEAD OF THE FED

The US dollar was found lower or unchanged against most of the other major currencies this morning. It was higher only versus JPY. …


Nach den geldpolitischen Entscheidungen der EZB und BoC in der vergangenen Handelswoche sind diese Woche die Fed, die SNB und die BoJ an der Reihe über ihre Pläne zu berichten. Wir erwarten jedoch nicht, dass eine dieser drei Banken ihre geldpolitischen Einstellungen ändert, wobei die Pressekonferenz der Fed nach dem jüngsten Anstieg der US-Inflation und den Bemerkungen einiger politischer Entscheidungsträger über eine mögliche Diskussion über die Drosselung der quantitativen Lockerung besondere Aufmerksamkeit auf sich ziehen könnte. Auch die britischen und kanadischen VPIs könnten interessant werden und gegebenenfalls für Bewegung sorgen.

Am Montag ist der Wirtschaftskalender recht dünn, es sind keine…


Após as decisões do BCE e do BoC na semana passada, esta semana, é a vez do Fed, do SNB e do BoJ concluírem sobre a política monetária. Não esperamos que nenhum desses três bancos altere suas configurações de política, mas a reunião do Fed pode atrair alguma atenção especial após o último aumento na inflação dos EUA e comentários de alguns formuladores de políticas sobre uma possível discussão sobre redução do QE. Os CPIs do Reino Unido e do Canadá também podem receber atenção extra.

Na segunda-feira, o calendário econômico está leve, sem grandes eventos ou indicadores programados.

Na…


Tras las decisiones del BCE y el BoC de la semana pasada, esta semana es el turno de la Fed, el SNB y el BoJ de concluir sobre la política monetaria. No esperamos que ninguno de estos tres bancos altere su configuración de políticas, pero la reunión de la Fed puede atraer una atención especial luego del último aumento de la inflación en EE. UU. Y los comentarios de algunos formuladores de políticas sobre una posible discusión sobre la reducción gradual de la QE. Los IPC del Reino Unido y Canadá también pueden recibir atención adicional.

El lunes, el calendario…


Following the ECB and BoC decisions last week, this week, it’s the turn of the Fed, the SNB, and the BoJ to conclude on monetary policy. We don’t expect any of these three Banks to alter its policy settings, but the Fed gathering may attract some special attention following the latest surge in US inflation and remarks by some policymakers over a potential discussion on QE tapering. The UK and Canadian CPIs may also receive some extra attention.

On Monday, the economic calendar is light, with no major events or indicators scheduled.

On Tuesday, Asian time, the RBA releases the…


EU shares closed in negative waters yesterday, but Wall Street and Asian shares today rebounded, perhaps as there was evidence that the acceleration in US inflation may have been due to transitory factors. We also had an ECB meeting, with the Bank saying that it will continue its PEPP purchases at a significant higher pace, confirming expectations over a dovish stance.

TRANSITORY FACTORS BEHIND SURGE IN US INFLATION

The US dollar traded lower against all of its major peers on Thursday and during the Asian session Friday. It lost the most ground versus GBP, AUD, CHF, and CAD in that order.

The weakening of the US dollar…


Today, investors are likely to lock their gaze on the ECB decision and the US CPIs for May. With regards to the ECB, we don’t expect any policy change neither any hints on QE tapering. However, in the US, inflation is anticipated to have accelerated again in both headline and core terms, something that could increase speculation for the Fed to start normalizing its policy sooner than previously thought.

INVESTORS AWAIT THE ECB AND THE US INFLATION DATA

The US dollar traded higher against all but one of the other major currencies on Wednesday and during the Asian session Thursday. …


Risk appetite remained soft on Tuesday and during the Asian session Wednesday, perhaps as investors remained cautious ahead of tomorrow’s inflation data from the US. Today though, the main event on the agenda may be the BoC monetary policy decision. We don’t expect any change in policy this time around, but any signals that more tapering may be in the works for the months to come are likely to prove supportive for the Canadian dollar.

BOC MEETS AHEAD OF TOMORROW’S ECB AND US CPIS

The US dollar traded higher or unchanged against all but one of its major counterparts on Tuesday and during the Asian session Wednesday. It gained…

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