Interest rates

Why the US dollar could benefit from fewer rate cuts than expected following a relatively quiet 2023...

USD/JPY is showing signs of rolling over, but remains in a longer-term uptrend ahead of the BOJ and Fed

The US dollar rises as the Fed still expects another rate hike and only two rate cuts next year

USD/JPY is holding steady near its highest levels of the year, with traders watching the well-defined short-term range from 145.00-146.60...

Gold is threatening to close lower for its 6th straight day, with potential to extend its drop toward $1865 before finding support...

GBP/USD is approaching near-term resistance around 1.2800 ahead of tomorrow’s retail sales report...

USD/JPY edges lower after Fed Chair Powell emphasizes patience...

GBP/USD is trading at a two-week low under previous-resistance-turned-support at 1.2850, potentially opening the door for a deeper retracement if the Fed is hawkish

We agree with the market’s expectation that Jerome Powell and company are likely to deliver a 25bps interest rate hike this month, though we certainly wouldn’t be shocked to see the central bank hold fire for now.

How did SVB collapse and what does it mean for financial markets?

Fed Funds futures traders are pricing in a full 50bps of interest rate cuts by the end of the year!

While there seems to be a clear consensus that the central bank should slow its pace of rate hikes, the ultimate question for this week’s meeting will revolve around the so-called “terminal rate,” or how high the Fed will have to push interest rates next year before pausing the rate hike cycle.

Major central banks around the world have been hiking rates at an unprecedented pace in order to try and cap inflation, which in some countries is at or near 40-year highs.

A carry trade is a trading strategy that involves borrowing a low-yield currency and investing in a high-yielding asset to exploit the interest rate differential. Carry trades are most common in forex trading with traders borrowing the low interest Japanese yen to buy higher interest currencies. Learn what currency pairs work best and how to execute the strategy yourself in our full guide.

A total of at least 150bps of rate hikes by the end of the year is now the market’s base case as the Fed continues to scramble to catch up with rising prices.

A total of at least 150bps of rate hikes by the end of the year is now the market’s base case as the Fed continues to scramble to catch up with rising prices.

It is expected to be another tough quarter for JPMorgan, which has underperformed its banking rivals in 2022.