Economies

The Bank of England slowed the pace of hikes with an 0.5% adjustment, in a three-way split decision and hinted at more tightening, but guidance is vague

The US Federal Reserve moderated the pace of rate increases, with a 50 bps move on Wednesday, but now expects rates to peak higher and Chair Powell delivered a hawkish message

The market is anticipating that the current hiking cycle is reaching its peak, with the risk-on sentiment more prevalent since the beginning of October. This is not surprising given the forward-looking nature of the markets.

In this week's podcast, FXCM senior market specialists, Russ and Nik, discuss the aggressive hike by the RBNZ despite other banks signalling a slowdown in pace. In addition, the two also talk about oil demand out of China and give their opinion on the Fed's minutes. In addition, this Thursday will see the preferred measure of inflation - core PCE - released, and Friday is NFP Friday. Listen to these…

The United Kingdom was in the spotlight this week, with a series of economic data and the government’s budget, but the pair had limited reaction

The pair had one of its best days of the year on Wednesday as a result of the soft inflation figures from the US and extends its gains today, past key tech levels

The Fed and BoE both hike by 75 bps but their tonality contrast with each other. RBA shows conservativeness, with central bank signs of slowing down in some regions. NFP leads to an odd market reaction and critical inflation data this Thursday. Into this mix, we also have the US mid-terms. All this and more.

The commodity opened the new week on the back foot amidst trade worries and China’s commitment to the zero-Covid policy

The central bank raised rated by 75 basis points, its largest move in thirty-three years, but softened its language as it expects prolonged recession

A policy rate above neutral is, in effect, a contractionary monetary policy. Given that the Fed may only have just hit neutral, the Fed's hawkishness is understandable. Chair Powell admitted as such, saying that "the level of interest rates will...be higher than previously expected."

The US Federal Reserve delivered another 75 bps rate increase and pointed to a moderation in the pace of tightening, but ruled out a pause, sparking two-way action and volatility in markets