Key Issues Remain UnresolvedFears of the health of UK/EU trade talks have come back into the spotlight this week. Following a warning from Michel Barnier last week that the UK had two weeks to “save”...
NZD Higher Despite Dovish RBNZ Comments
Further Stimulus As NecessaryThe New Zealand Dollar has seen better buying again this week despite a further set of dovish comments from the RBNZ. Speaking overnight, the governor of the RBNZ Adrian...
EU Inflation: Too Early to Relax
EU inflation plunged into contractionary ground in August for the first time since May 2016. As the gap between actual inflation and the target continues to widen, the ECB feels more pressure to roll...
UK Manufcaturing PMI Soars in August
Factory Sector Sees Significant IncreaseThe British Pound has been well bid over Tuesday’s European session in response to a further set of strong economic data. The IHS Markit Manufacturing index was...
Long-term bond yields rise. Will the Fed conduct “Operation Twist 2”?
Following Jerome Powell’s speech at Jackson Hole last week, 30-year bond yields advanced to the highest level for two months on Friday. There are signs that the market expects consumer inflation to...
What Does The Fed's Inflation Shift Mean?
For those traders awaiting Fed chairman Jerome Powell’s speech at the Jackson Hole symposium this week, there was certainly little disappointment. The Fed chair announced major shift in the Fed’s...
Fed’s Mester: Rising Corporate Profits in 3Q Doesn’t Mean Recession is Behind
Economic activity and hiring have been constrained during coronavirus outbreak, confirming that the recovery will be slow and economy will need more support from monetary and fiscal authorities,...
Key economic events and reports for the week ahead
Monday, August 31, 2020 - Manufacturing PMI (Aug)(CNY).Tuesday, September 1, 2020 - RBA Interest Rate Decision (Sep)(AUD), German Manufacturing PMI (Aug)(EUR), CPI (YoY) (Aug)(CPI).Wednesday,...
A Few Remarks on Yesterday’s Powell Speech
Well, yesterday the Fed, represented by its head Jeremy Powell, formally confirmed that it adjusts reaction function to changes in inflation. Whereas previously the Fed used to target specific rate of...
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