• Are investors losing confidence in the Fed?

  Investors have long been playing the bet that the Fed will opt to lean on the side of policy accommodation. But in recent months, this bet has been a tougher one to play, and in recent weeks, things have only intensified, with rate cut expectations significantly scaled back. Audio Update Technical highlights EURUSD Trading to […]

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• Investors will keep focusing on reduced geopolitical risk

  Investors are definitely relieved things weren’t as bad as they could have been over the weekend. The Iranian strike on Israel felt more like a political message than anything else, and the fallout was well contained. At this point, there is every hope there will be a de-escalation in the conflict. Wrap-Up Call

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• Things could have been a lot worse over the weekend

  The run of Dollar demand has resulted in fresh yearly highs against many currencies. We had already seen a wave of Dollar demand on the back of a repricing of Fed rate expectations, and in recent days, geopolitical factors have played into even more Dollar demand. Audio Update Technical highlights EURUSD Trading to lower end […]

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• Serious risks to consider into the weekend

  On Thursday, we highlighted the fact that investors are desperate to use anything to justify the Fed needing to get back to moving to more rate cuts than less in 2024. And on Thursday, as per our commentary, US producer prices were all of a sudden that big deal economic data that normally isn’t a […]

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• US producer prices take spotlight over ECB decision

  No change is expected from the ECB on rates and the central bank decision will most likely be taking a healthy back seat to data that normally doesn’t get as much attention as it likely will today. That data is US producer prices. Wrap-Up Call

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• About US CPI fallout, producer prices, and bitcoin

  US rate expectations have seen another wild repricing in the aftermath of this latest hot US CPI print. The market is now looking for just 42 basis points of cuts in 2024, almost another full basis point of a cut since only last Friday. Audio Update Technical highlights EURUSD Confined to major consolidation GBPUSD Well […]

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• US CPI data expected to shake things up

  There is going to be some attention around the Canadian Dollar today with the Bank of Canada policy decision due. But the big event of the day is on tap and is unquestionably the CPI data out of the US. Wrap-Up Call

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• Volatility expected to pick up on Wednesday

  The early portion of this week has been relatively tame, with the market not wanting to make any fresh bets on direction until more clarity comes later today in the anticipated US economic data. We have however highlighted an interesting disconnect between the rates market and currency market. Audio Update Technical highlights EURUSD Confined to […]

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• Traders point to dovish Fed speak to reconcile price action

  Things have been relatively quiet out there on this Tuesday thus far. What we have seen is a US Dollar under mild pressure across the board, US equity futures that haven’t wanted to go anywhere, and another record high in the price of gold. Wrap-Up Call

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• How much are investors ignoring the signs?

  There is every sense right now that the market is doing its very best to hold off on reacting too much to recent economic data out of the US that would suggest the Fed should be considering less rate cuts in 2024 than what is currently being priced. Audio Update Technical highlights EURUSD Confined to […]

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