Week Ahead: More CB intervention? Plus, RBA, RBNZ, OPEC+, and NFP
Markets will be waiting on pin and needles this week to see which central bank may be the next to intervene.
US Core PCE follows EU CPI higher
Markets are pricing in a 75bps rate hike for both central banks. However, the meetings not until the end of October and there is still a lot of data which can change rate hike expectations
China ready to intervene in USD/CNH; Tells banks to prepare
After the BOJ and the BOE intervened in the markets, traders are asking “Who’s next?”.
Gilts gone wild!
The yield on the 30-year Gilt has moved from a high on the day of 5.092% down to a low of 3.869%.
BOE folds and intervenes in bond markets; GBP/JPY in 410 pip range
With the BOE and the BOJ intervening over the last week, GBP/JPY has been extremely volatile, trading in a range from 164.44 down to 148.79 over that same timeframe.
US Housing Prices drop for 3rd consecutive month
Perhaps watching USD/JPY could give a clue as to where mortgage rates may be headed next!
ECB members working the wires today to try and prop up Euro
The ECB must have been excited when it saw its currency rising vs the Pound
Currency pair of the week: GBP/USD
Will the new budget from PM Liz Truss “break the economy” or will it help everyday citizens as she says it will?
Gold falls below $1650 as US Dollar soars
Recession fears are causing both GBP/USD and EUR/USD to move lower. As a result, the US Dollar is moving higher. This leaves traders nervous to buy the dip in Gold as it moves to its lowest level since April 2020.
SNB hikes 75bps, but Franc’s not satisfied
The SNB hiked rates by 75bps today. However, the inconspicuous comments by the central bank left EUR/CHF weary as to if there are more to come.
Bank of England hikes rates by 50bps; More to come?
Despite a rate hike by the BOE of 50bps, GBP/USD is near 37-year lows. Why? Because the Fed hiked rates by 75bps yesterday and said that more rate hikes are on the way.