Currencies

Yesterday, the Federal Reserve kept interest rates on hold for a second consecutive meeting. Chair Powell recognised that inflation is slowing as opposed to emphasising how strong growth has been. Whilst keeping the door open for further hikes, there is a strong possibility that this rate hiking cycle has peaked. As such, the real yield dropped yesterday by 7.5% to close at 2.32%. It has dropped further today and is…

The pair rises past key resistances and into the Ichimoku Cloud after the Fed boost, but reaches overbought levels and now awaits next week’s live meeting by the Reserve Bank of Australia

Yesterday's European core CPI (flash estimate) came in at 4.2% y/y, which is lower than the previous 4.5 y/y, registering as a two-year low. The spread between the German and US 2-year notes also declined by about 1.5% on the day.

The pair rallied on Tuesday after the BoJ’s YCC tweak underwhelmed markets, but eases today on verbal intervention and as investors brace for the Fed’s policy decision

Watch today’s US Open for insights on the new YCC tweak by the Bank of Japan, the further deceleration of price pressures in Eurozone, key incoming events and more

Core PCE, the Federal Reserve’s preferred inflation gauge came in at 3.7% y/y, lower than the previous (and revised) month’s 3.8% y/y. On a monthly basis the reading was 0.3%, which annualises to 3.66%, which is still higher than the Federal Reserve’s target of 2%. Generally, these numbers matched market expectations.

The pair maintains its upside bias, but is cautious after the ECB paused yesterday but offered little in the way of direction, now looking to next week’s BoE decision

Watch today’s US Open for insights on the rate hold by the European Central Bank, the impressive Q3 results of Meta Platforms, key upcoming events and more

The BoC kept rates at 5% for second straight month, helped by the recent moderation in inflation and USD/CAD reacted higher, but policymakers remain concerned around slow progress

Watch today’s US Open for insights on the US yield moderation, the oil industry’s M&A activity, incoming earnings from tech giants like Meta and more

After briefly moving above 5% the US 10-year yield has retreated and is currently yielding 4.81%. Technically, there is a divergence between the 10-year yield and its RSI. This suggests that momentum may be slowing and that the yield correction may extend.