Currency Analysis & Comment

The labor market remains strong despite downward revision in recent months. Disinflation dynamics may decelerate post Thursday's data. Meanwhile, the EUR/USD pair is consolidating in an upward...

The US dollar demonstrated strength at the beginning of the year as it surged to reach the 103 level. This surge was propelled by positive US economic data, hawkish signals from the Fed, and an uptick...

The dollar is back around Friday’s open levels against most G10 currencies as markets face contradicting indications from the jobs market and ISM services index. Expect a quiet start to the week...

The soft landing playbook could see a temporary reversal today were the December US jobs report to come in on the strong side. The market seems to have gotten a little ahead of itself in pricing the...

The US dollar is under pressure as the pound, and euro attempt a recovery, raising doubts about its upward trajectory. The dollar's recent easing is due to a minor rebound in risk appetite, a lack...

Hawks and doves might both be satisfied with yesterday's Fed minutes. Stressing conditionality seems inconsistent with March cut expectations, but the openness to a QT exit and concerns about the...

The dollar jumped yesterday as investors started to return from the long Christmas break. Markets are unwinding some dovish bets, and questioning stretched equity valuations, ultimately favoring...

The prevailing market consensus points toward lower interest rates in developed countries next year, with both the Federal Reserve (Fed) and the European Central Bank (ECB) anticipated to make rate...

The Bank of Japan did not give in to market pressure and kept its dovish guidance intact. However, the wording on the economic and inflation outlook paves the way for a hike in the second quarter in...

With the Bank of Japan being the last major central bank decision left for this year and the last important macro releases of the year to come this week, the USD/JPY is the featured currency pair of...

The US Fed's signal of potential rate cuts next year weakened the US dollar, which closed the week in the 102 band. Despite the dollar's decline, expectations for a rate cut in March, currently at...

The dollar is recovering some ground after the pushback from Fed officials against rate-cut bets. However, the dovish Dot Plot may work as an anchor for rates and keep the dollar soft into the end of...

As the dust settles after a furious period for central bank meetings we are left to conclude that European policymakers have chosen to push back more than the Fed when it comes to what the market...

In a somewhat surprising move, the Fed has acknowledged recent disinflation trends and poured gasoline on the fire of easing expectations for 2024. The news has understandably been greeted by global...