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I love a chart out today from Dario Perkins and MD Global Macro highlighting that there’s no single playbook for reacting to Federal Reserve rate cuts. Assuming that May is the final hike, the next trade will be reacting to cuts. “When the Fed cut rates, history says the stock market can go up, down,
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Dollar’s decline continues in early trading, fueled by weaker-than-expected upstream inflation and job data, pushing the greenback to its lowest level against Euro this year. The Swiss Franc emerges as today’s biggest winner, bolstered by falling benchmark yields in Germany and the UK. Meanwhile, Euro benefits from hawkish remarks by ECB officials, while Australian dollar
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Dollar remains somewhat soft in the Asian trading session, though it hasn’t seen any follow-through selling. Hawkish FOMC minutes have partially offset the impact of consumer inflation data on the currency. The broader financial markets also lack a clear direction, as US stock indexes closed lower after initial rally. Benchmark treasury yields mostly reversed their
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