Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted on Wednesday that it is difficult for central banks to generally estimate the fallout of things like tariffs, and could complicate the Fed’s ability to accomplish its task of bringing inflation down to 2%. Key highlights If inflation rises or progress stalls, US central bank […]
USD/CAD falls sharply below 1.4300 as the Canadian Dollar continues to advance on US President Trump’s decision to postpone tariffs on Canada. BofA expects US tariff threats to China will continue to persist until a new USMCA deal gets negotiated. Investors await the US ISM Services PMI and the ADP Employment data for December. The USD/CAD
Japanese Yen gained significant ground in the Asian session, supported by stronger-than-expected nominal wage growth, which bolstered the likelihood of further BoJ rate hikes. Additionally, continued rise in real wages for the second consecutive month, despite being largely driven by seasonal bonuses, adds to the argument that wage pressures could help sustain inflation near the
EUR/USD rebounds sharply to near 1.0350 as US President Trump postpones his orders of tariffs on Canada and Mexico for 30 days. Trump’s intentions to impose tariffs on China remain intact. The ECB is expected to cut interest rates three times more this year. EUR/USD bounces back from the intraday low of 1.0270 and rebounds
Global markets found some stability after the US agreed to a 30-day delay on tariffs against Mexico and Canada following agreements on fentanyl trafficking and border security measures. However, trade tensions remain elevated as Washington proceeded with the additional 10% tariff on all Chinese imports. In response, China retaliated by imposing a 15% tariff on
Canadian Dollar is steady after BoC delivered its sixth consecutive rate cut, lowering its policy rate by 25bps to 3.00% as expected. The pace of easing has slowed from December’s 50bps reduction, reflecting a more measured approach as interest rate sits inside neutral zone. BoC explicitly warned of risks stemming from potential US tariffs, noting
Dollar ended the week as the worst-performing major currency, largely weighed down by strong risk-on sentiment that took hold after President Donald Trump’s first week in office. Investors had anticipated more aggressive trade measures from the new administration, but Trump instead struck a relatively softer tone on tariffs, leading to improved risk appetite in equities
Global markets are buzzing in anticipation of Donald Trump’s inauguration on January 20, yet the latest developments suggest investors may already be looking past the immediate impact. Despite speculation surrounding Trump’s policies—particularly tariffs—various benchmarks and asset classes are charting their own directions based on localized drivers and monetary policy expectations. In the US, the strong
The Japanese Yen gains positive traction for the second straight day amid BoJ rate hike bets. The narrowing of the US-Japan yield differential provides an additional boost to the JPY. The risk-on mood caps the JPY and helps USD/JPY to rebound from a multi-week low. A modest USD uptick contributes to the pair’s bounce, though
Dollar extended its near-term pullback in early trading after core inflation data for December came in slightly below expectations, offering a degree of relief to traders and investors. Treasury yields also retreated, with the 10-year yield falling back below the 4.7% mark. Core CPI rose by 3.2% yoy, down from 3.3%, a result that eased
The Dow Jones is looking to pare recent losses, but topside momentum remains limited. Investors are pivoting out of popular tech rally favorites, dragging equity markets lower. The Dow is keeping on balance as investors rotate into non-tech darlings. The Dow Jones Industrial Average (DJIA) skirted Monday’s broad-market declines as investors gave a second thought
Sterling extended its losses at the start of the week as deepening concerns over the UK’s fiscal situation continued to dominate market sentiment. Yields on 10-year UK Gilts surged above 4.88%, inching closer to the psychologically significant 5% mark. Market participants remain skeptical about the government’s fiscal discipline, despite repeated reassurances from Chancellor Rachel Reeves.
The US markets last week were shaped by two dominant themes: uncertainty surrounding trade policies of the incoming US administration and the impact of robust US economic data. Initial market confusion, driven by ambiguous signals regarding tariffs, created significant volatility. However, this indecisiveness gave way to clarity as strong US data reaffirmed the resilience of
