The dollar index slipped 0.1%, reversing from its rally last week, while the euro rose 0.1% against the greenback to $1.0978. The British pound gained 0.2% against the dollar, standing at $1.2764. While the Japanese yen has slumped following weak Japanese wage data, the currency held steady against the dollar, which fell 0.25% to 145.39 yen.

According to future markets, investors are expecting a total of 140 basis points in rate cuts this year, pricing a two-thirds chance that they will begin in March. Still, some experts believe that markets may be getting ahead of themselves. “In our view, investors are still too optimistically positioned for Fed rate cuts,” Rabobank senior FX strategist Jane Foley commented in a note to investors.

The post Dollar Retreats as Investors Anticipate Rate Cuts appeared first on theprimarymarket.com.

In contrast, the sterling was down against the euro, which edged 0.22% higher to 86.95 pence. Still, this wasn’t enough to push the British currency off track from rising 3% against the euro for the year. The pound’s rise against other major currencies this year is largely driven by the Bank of England’s tight fiscal policy in an effort to curb inflation.

Currently, investors are betting that the Bank of England (BoE) will take longer to lower interest rates than its counterparts at the US Federal Reserve and the European Central Bank (ECB). Traders expect the BoE to implement a combined 140 basis points of rate cuts in 2024; lower than an expected 160 basis points from the ECB and 150 from the Fed.

The post British Pound on Course for 5% Gain in 2023 appeared first on theprimarymarket.com.

Following bets that the Bank of Japan could move to tighten its monetary policy, the yen strengthened, rising 0.1% against the dollar to 142.25. The euro advanced 0.3% against the greenback to $1.1024, nearing the five-month peak of $1.1040 hit last week, while the pound sterling held steady at $1.2706.

Data released last Friday showed that U.S. prices fell in November from the previous month—the first time this has happened in over three and a half years. Annual inflation fell below 3%, approaching the Federal Reserve’s 2% target. “The Fed has made considerable progress on inflation, as core started the year closer to an annual rate of 5%, though the job is not yet done in ensuring inflation is on a sustained trajectory toward its 2% target,” Wells Fargo analysts observed in a note to investors.

The post Dollar Stumbles Amid Signs of Cooling Inflation appeared first on theprimarymarket.com.

Measuring the greenback against a basket of major currencies, the dollar index remained steady at 102.40, with the index remaining 1% down for the year. The euro remained stable at $1.0941 while the sterling suffered its biggest loss against the dollar in two months after investors considered that the Bank of England may only introduce interest rate cuts by May next year. The dollar-to-pound exchange rate was at 86.78 pence.

The yen rose about 0.2% against the dollar to 143.24 per dollar, however, the Japanese currency is down by more than 8% against the greenback this year as the Bank of Japan continues to keep short-term rates negative.

The post Dollar Steadies Ahead of U.S. Inflation Data appeared first on theprimarymarket.com.

Markets have become increasingly confident that the Fed will lower its interest rates at its March meeting next year. “The Fed, having failed to push back on the aggressive dovish repricing we’ve seen over the last six weeks or so, has given license for financial conditions to loosen further,” Michael Brown, a market analyst at Trader Xin London observed.

The dollar index, which measures the greenback against a basket of other major currencies, slipped 0.07% lower to 102.55, with the euro gaining ground against the dollar, rising 0.22%. The British pound was down 0.31% against the dollar at $1.2641 while the greenback was up 0.51% against the Japanese yen at 142.935.

The post Dollar Slips Amid Bets on Fed Rate Cuts appeared first on theprimarymarket.com.

News of the currency’s stumble comes ahead of the Bank of England’s policy meeting next week. Markets are expecting the central bank to hold rates constant. According to future markets, the BoE’s first rate cut is expected in June, while the European Central Bank and Federal Reserve are expected to implement rate cuts as soon as March.

“Whilst a lot of the weak structural backdrop is known, the key negative for sterling over 2024 is the potential for the markets to price in earlier rate cuts,” Gareth Gettinby, an investment manager with Aegon Asset Management, remarked, suggesting that the sterling’s strength will be largely affected by interest rates.

The post Sterling Tanks Ahead of Bank of England Policy Meeting appeared first on theprimarymarket.com.

In Europe, futures on the Euro Stoxx 50 declined by 0.4% while in Asia, Hong Kong’s Hang Seng index dropped by 1.2% as did Japan’s Topix index. In contrast, China’s mainland Shanghai Composite gained 0.2%.

The US dollar showed signs of strengthening, with the Bloomberg Spot Dollar Index rising 0.2%. The British pound slipped 0.1% to $1.2326 as did the euro, to $1.0706. The Japanese yen fell 0.2% to 150.36 per dollar while the offshore yuan remained little changed.

The post Stocks Fall, Dollar Advances Amid Fed Rate Uncertainty appeared first on theprimarymarket.com.

Markets are expecting the Fed to hold its interest rates steady at around 5.25%; their highest level over the past 22 years. Money markets are expecting the same from the BoE, pricing a 92% chance that its interest will go unchanged.

“Since the last MPR (monetary policy rate) in August, the data has largely supported the decision to hold, pointing to a loosening in the labour market (from what we can tell), slowdown in economic activity and easing inflation,” RCB economists said of the current financial situation.

The post Dollar Rises Against Sterling Ahead of Fed Decision appeared first on theprimarymarket.com.

Futures on the S&P 500 advanced by 0.3%, as did those on the Nasdaq 100. Contracts listed on the Dow Jones Industrial Average edged 0.2% higher. The yield on 10-year Treasuries fell by four basis points to 4.5%.

While the Bloomberg Spot Dollar Index remained little changed, the U.S. dollar strengthened against several major currencies. The euro declined by 0.1% to $1.0559, while the offshore yuan fell 0.1% to 7.3176 per dollar. The British pound was unchanged at $1.2149.

The post Dollar and Stocks Steady as Bonds Ease From Record Highs appeared first on theprimarymarket.com.

Goldman Sachs, Deutsche Bank, and Nomura all believe that the Bank of England will hold rates steady, backtracking from previous expectations of a September hike. Chris Turner, head of markets at ING, disagreed, claiming that a hike of 25 basis points is still likely, claiming that “a hike would provide GBP/USD with some much-needed support.” 

The sterling fell by 0.28% against the US dollar to $1.2309. Meanwhile, the euro strengthened against the British pound by 0.23%, reaching 86.55 pence.

The post Sterling Staggers Ahead of Bank of England Policy Decision appeared first on theprimarymarket.com.

The dollar index slipped 0.1%, reversing from its rally last week, while the euro rose 0.1% against the greenback to $1.0978. The British pound gained 0.2% against the dollar, standing at $1.2764. While the Japanese yen has slumped following weak Japanese wage data, the currency held steady against the dollar, which fell 0.25% to 145.39 yen.

According to future markets, investors are expecting a total of 140 basis points in rate cuts this year, pricing a two-thirds chance that they will begin in March. Still, some experts believe that markets may be getting ahead of themselves. “In our view, investors are still too optimistically positioned for Fed rate cuts,” Rabobank senior FX strategist Jane Foley commented in a note to investors.

The post Dollar Retreats as Investors Anticipate Rate Cuts appeared first on theprimarymarket.com.

In contrast, the sterling was down against the euro, which edged 0.22% higher to 86.95 pence. Still, this wasn’t enough to push the British currency off track from rising 3% against the euro for the year. The pound’s rise against other major currencies this year is largely driven by the Bank of England’s tight fiscal policy in an effort to curb inflation.

Currently, investors are betting that the Bank of England (BoE) will take longer to lower interest rates than its counterparts at the US Federal Reserve and the European Central Bank (ECB). Traders expect the BoE to implement a combined 140 basis points of rate cuts in 2024; lower than an expected 160 basis points from the ECB and 150 from the Fed.

The post British Pound on Course for 5% Gain in 2023 appeared first on theprimarymarket.com.

Following bets that the Bank of Japan could move to tighten its monetary policy, the yen strengthened, rising 0.1% against the dollar to 142.25. The euro advanced 0.3% against the greenback to $1.1024, nearing the five-month peak of $1.1040 hit last week, while the pound sterling held steady at $1.2706.

Data released last Friday showed that U.S. prices fell in November from the previous month—the first time this has happened in over three and a half years. Annual inflation fell below 3%, approaching the Federal Reserve’s 2% target. “The Fed has made considerable progress on inflation, as core started the year closer to an annual rate of 5%, though the job is not yet done in ensuring inflation is on a sustained trajectory toward its 2% target,” Wells Fargo analysts observed in a note to investors.

The post Dollar Stumbles Amid Signs of Cooling Inflation appeared first on theprimarymarket.com.

Measuring the greenback against a basket of major currencies, the dollar index remained steady at 102.40, with the index remaining 1% down for the year. The euro remained stable at $1.0941 while the sterling suffered its biggest loss against the dollar in two months after investors considered that the Bank of England may only introduce interest rate cuts by May next year. The dollar-to-pound exchange rate was at 86.78 pence.

The yen rose about 0.2% against the dollar to 143.24 per dollar, however, the Japanese currency is down by more than 8% against the greenback this year as the Bank of Japan continues to keep short-term rates negative.

The post Dollar Steadies Ahead of U.S. Inflation Data appeared first on theprimarymarket.com.

Markets have become increasingly confident that the Fed will lower its interest rates at its March meeting next year. “The Fed, having failed to push back on the aggressive dovish repricing we’ve seen over the last six weeks or so, has given license for financial conditions to loosen further,” Michael Brown, a market analyst at Trader Xin London observed.

The dollar index, which measures the greenback against a basket of other major currencies, slipped 0.07% lower to 102.55, with the euro gaining ground against the dollar, rising 0.22%. The British pound was down 0.31% against the dollar at $1.2641 while the greenback was up 0.51% against the Japanese yen at 142.935.

The post Dollar Slips Amid Bets on Fed Rate Cuts appeared first on theprimarymarket.com.

News of the currency’s stumble comes ahead of the Bank of England’s policy meeting next week. Markets are expecting the central bank to hold rates constant. According to future markets, the BoE’s first rate cut is expected in June, while the European Central Bank and Federal Reserve are expected to implement rate cuts as soon as March.

“Whilst a lot of the weak structural backdrop is known, the key negative for sterling over 2024 is the potential for the markets to price in earlier rate cuts,” Gareth Gettinby, an investment manager with Aegon Asset Management, remarked, suggesting that the sterling’s strength will be largely affected by interest rates.

The post Sterling Tanks Ahead of Bank of England Policy Meeting appeared first on theprimarymarket.com.

In Europe, futures on the Euro Stoxx 50 declined by 0.4% while in Asia, Hong Kong’s Hang Seng index dropped by 1.2% as did Japan’s Topix index. In contrast, China’s mainland Shanghai Composite gained 0.2%.

The US dollar showed signs of strengthening, with the Bloomberg Spot Dollar Index rising 0.2%. The British pound slipped 0.1% to $1.2326 as did the euro, to $1.0706. The Japanese yen fell 0.2% to 150.36 per dollar while the offshore yuan remained little changed.

The post Stocks Fall, Dollar Advances Amid Fed Rate Uncertainty appeared first on theprimarymarket.com.

Markets are expecting the Fed to hold its interest rates steady at around 5.25%; their highest level over the past 22 years. Money markets are expecting the same from the BoE, pricing a 92% chance that its interest will go unchanged.

“Since the last MPR (monetary policy rate) in August, the data has largely supported the decision to hold, pointing to a loosening in the labour market (from what we can tell), slowdown in economic activity and easing inflation,” RCB economists said of the current financial situation.

The post Dollar Rises Against Sterling Ahead of Fed Decision appeared first on theprimarymarket.com.

Futures on the S&P 500 advanced by 0.3%, as did those on the Nasdaq 100. Contracts listed on the Dow Jones Industrial Average edged 0.2% higher. The yield on 10-year Treasuries fell by four basis points to 4.5%.

While the Bloomberg Spot Dollar Index remained little changed, the U.S. dollar strengthened against several major currencies. The euro declined by 0.1% to $1.0559, while the offshore yuan fell 0.1% to 7.3176 per dollar. The British pound was unchanged at $1.2149.

The post Dollar and Stocks Steady as Bonds Ease From Record Highs appeared first on theprimarymarket.com.

Goldman Sachs, Deutsche Bank, and Nomura all believe that the Bank of England will hold rates steady, backtracking from previous expectations of a September hike. Chris Turner, head of markets at ING, disagreed, claiming that a hike of 25 basis points is still likely, claiming that “a hike would provide GBP/USD with some much-needed support.” 

The sterling fell by 0.28% against the US dollar to $1.2309. Meanwhile, the euro strengthened against the British pound by 0.23%, reaching 86.55 pence.

The post Sterling Staggers Ahead of Bank of England Policy Decision appeared first on theprimarymarket.com.