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  • EURUSD weakens as economies diverge

    On Friday at Jackson Hole, ECB president Christine Lagarde said that EU rates will need to stay high “as long as necessary” to bring inflation down. At face value this sounds hawkish. However, the ECB needs to manage this in the face of a stagnating economy.

  • Fed Chair Powell Delivers Hawkish Speech at Jackson Hole

    Fed Chair Powell’s delivery at Jackson Hole had a hawkishness to it. He said that “although inflation has moved down from its peak…it remains too high.” This comes after the Fed’s 11 rate hikes since the beginning of 2022, which has the target range currently at 5.25%-5.5%. At face value, this seems restrictive, however labour markets are still tight, and GDP is still growing at a fair pace.

  • Language Processing Platforms and Forex Trading

    AI and Language Processing In recent years, AI has made amazing progress in understanding and using human language. AI language processing has changed how computers interact with us. It can translate languages, analyse feelings in texts, create chatbots, and help us in many industries. AI and language processing have transformed our world, opening new ways for computers and people to work together. In this article we explore two language processing…

  • EURUSD slips on deteriorating flash PMIs

    Constrained economic activity in the Euro Area is negatively impacting the EURUSD and influencing ECB policy. As such, the currency pair is sensitive to economic releases. Whilst the central bank has inflation foremost on its mind, the level of Euro Area slowdown cannot be ignored. Flash PMIs that were released today continue to indicate a challenging environment, implying contraction in both the manufacturing and services sectors.

  • EURUSD reflecting relative Euro Area economic weakness

    The 2-year yield serves as a good general proxy for monetary policy direction. The top chart shows the German 2-year yield, representing European monetary policy, and the chart underneath is the US 2-year yield. Since mid-July, the German 2-year has been trending down and the US 2-year has been trending up.

  • Real yields continue to influence markets.

    The 10-year real yield, adjusted for inflation, continues to climb. It is trading close to 2% at 1.96%. The last time real yields were at these levels was back in June 2009. This post-inflation yield will be appealing to a significant number of investors, adding increased rivalry for stocks, particularly stocks with elevated valuations. The daily candles in Chart 1 show that the 10-year real yield has charted a higher…


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