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.

Despite its latest uptick, the yen continues to hover near its almost eight-month low of 145.07 per dollar. In an effort to prevent further depreciation, Japanese Finance Minister Shunichi Suzuki warned against excessive selling of the currency.

In comparison, the euro was down 0.15% against the greenback at $1.089, while the sterling climbed 0.18% against the dollar to $1.271. The U.S. dollar index, which tracks the greenback against six major world currencies, was little changed at 102.99.

Early on Tuesday, Japanese financial diplomat Masato Kanda revealed that officials had established close contact with U.S. Treasury Secretary Janet Yellen and other foreign authorities in an effort to remain on top of developments in currencies and the broader financial market.

The post Yen Strengthens as Investors Await News On Government Intervention appeared first on theprimarymarket.com.

Among those currencies that the dollar performed notably well against is the Japanese yen, with the greenback strengthening by almost 1% to 132.76 yen; near last week’s 132.9.

While the euro strengthened by a marginal 0.15% against the dollar to reach $1.0693 and the pound rose 0.3% to $1.2096, the dollar index remains steady at 103.55, just shy of last week’s one-month peak of 103.9.

Investor focus is now shifting toward Tuesday’s consumer price index data, after previously being set on the actions of the Federal Reserve. Following Fed Chair Jerome Powell’s public address last week, investors are expecting the Federal Reserve to keep their monetary policy tighter for longer.

This turnaround comes after signs of cooling inflation pushed observers to believe that the Federal Reserve would be loosening its strict monetary policy.

The post U.S. Dollar Strengthens Ahead of CPI Data appeared first on theprimarymarket.com.

While the Australian dollar hit $0.7000 for the first time since August, the euro hit a nine-month high of $1.0874 during early trading. The dollar index, which tracks the dollar against a basket of major currencies, fell to a seven-month low of 101.77. The greenback extended its major selloff from last week after U.S. consumer prices fell for the first time in over two and a half years.

The dollar’s decline has also been largely attributed to growing investor confidence that the Federal Reserve will soon bring an end to its aggressive interest rate policy. The Federal Reserve’s significant interest rate hikes are viewed as a major driver for the dollar’s 8% surge in 2022.

Samy Chaar, the chief economist at Lombard Odier, cautioned against overly-optimistic investor outlooks. “It’s too soon to imagine a significant dollar downtrend, we’ve had some dollar repricing certainly, but for broad-based dollar weakness you’ll need to really see Fed expectations roll over materially and the Fed potentially cutting rates at some point, and we are not at this point,” Chaar explained.

The post Dollar Remains Rooted to Seven-Month Low as Euro and Yen Gain Ground appeared first on theprimarymarket.com.

Investors’ focus is firmly fixed on the minutes of the Federal Reserve’s December meeting, which are scheduled to be released on Wednesday. Onlookers are hopeful that these minutes will give insight into the interest rate policies that will be adopted in 2023.

Last month, the Federal Reserve raised rates by 50 basis points after delivering four consecutive 75-basis point hikes in the year. While inflation has seemingly cooled off in recent months, the central bank remains insistent that it must keep rates high in an effort to tame inflation over the long term.

“The Fed was hawkish but the market didn’t buy into it,” Nordea chief analyst Niels Christensen said of the Federal Reserve’s recent approach. “The market is pricing in cuts towards the end of this year and that’s not the message from the Fed as we see it.”

Japan’s yen also performed strongly on Tuesday, hitting a seven-month peak during Asian trading hours at around 130.45 per dollar.

The post Dollar Hits Two-Week High as Yen Jumps to Seven-Month Peak appeared first on theprimarymarket.com.

In fact, the U.S. dollar has been doing so well lately that it’s closer to the Euro than it’s been in the last decades. For the last 20 or so years, Europe has held an upper hand in the currency department, but now America is keeping the country on its toes.

But it’s not just Europe that needs to watch its back. It turns out that the Japanese Yen is down a whopping 20% when matched up against the U.S. dollar in the last year alone. This is something that’s virtually unprecedented in the modern age of finance.

But this is nothing compared to the polarizing difference of Bitcoin. The Cryptocurrency giant, after enjoying years of meteoric success, has found itself crashing 70% again the dollar since its record high in November.

This is all very good news for Americans that are traveling abroad or looking to go on major shopping sprees. However, it’s not so great for investors in global markets, who will now be looking to recover from this major change.

The post U.S. Dollar Experiences Major Surge 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.

Despite its latest uptick, the yen continues to hover near its almost eight-month low of 145.07 per dollar. In an effort to prevent further depreciation, Japanese Finance Minister Shunichi Suzuki warned against excessive selling of the currency.

In comparison, the euro was down 0.15% against the greenback at $1.089, while the sterling climbed 0.18% against the dollar to $1.271. The U.S. dollar index, which tracks the greenback against six major world currencies, was little changed at 102.99.

Early on Tuesday, Japanese financial diplomat Masato Kanda revealed that officials had established close contact with U.S. Treasury Secretary Janet Yellen and other foreign authorities in an effort to remain on top of developments in currencies and the broader financial market.

The post Yen Strengthens as Investors Await News On Government Intervention appeared first on theprimarymarket.com.

Among those currencies that the dollar performed notably well against is the Japanese yen, with the greenback strengthening by almost 1% to 132.76 yen; near last week’s 132.9.

While the euro strengthened by a marginal 0.15% against the dollar to reach $1.0693 and the pound rose 0.3% to $1.2096, the dollar index remains steady at 103.55, just shy of last week’s one-month peak of 103.9.

Investor focus is now shifting toward Tuesday’s consumer price index data, after previously being set on the actions of the Federal Reserve. Following Fed Chair Jerome Powell’s public address last week, investors are expecting the Federal Reserve to keep their monetary policy tighter for longer.

This turnaround comes after signs of cooling inflation pushed observers to believe that the Federal Reserve would be loosening its strict monetary policy.

The post U.S. Dollar Strengthens Ahead of CPI Data appeared first on theprimarymarket.com.

While the Australian dollar hit $0.7000 for the first time since August, the euro hit a nine-month high of $1.0874 during early trading. The dollar index, which tracks the dollar against a basket of major currencies, fell to a seven-month low of 101.77. The greenback extended its major selloff from last week after U.S. consumer prices fell for the first time in over two and a half years.

The dollar’s decline has also been largely attributed to growing investor confidence that the Federal Reserve will soon bring an end to its aggressive interest rate policy. The Federal Reserve’s significant interest rate hikes are viewed as a major driver for the dollar’s 8% surge in 2022.

Samy Chaar, the chief economist at Lombard Odier, cautioned against overly-optimistic investor outlooks. “It’s too soon to imagine a significant dollar downtrend, we’ve had some dollar repricing certainly, but for broad-based dollar weakness you’ll need to really see Fed expectations roll over materially and the Fed potentially cutting rates at some point, and we are not at this point,” Chaar explained.

The post Dollar Remains Rooted to Seven-Month Low as Euro and Yen Gain Ground appeared first on theprimarymarket.com.

Investors’ focus is firmly fixed on the minutes of the Federal Reserve’s December meeting, which are scheduled to be released on Wednesday. Onlookers are hopeful that these minutes will give insight into the interest rate policies that will be adopted in 2023.

Last month, the Federal Reserve raised rates by 50 basis points after delivering four consecutive 75-basis point hikes in the year. While inflation has seemingly cooled off in recent months, the central bank remains insistent that it must keep rates high in an effort to tame inflation over the long term.

“The Fed was hawkish but the market didn’t buy into it,” Nordea chief analyst Niels Christensen said of the Federal Reserve’s recent approach. “The market is pricing in cuts towards the end of this year and that’s not the message from the Fed as we see it.”

Japan’s yen also performed strongly on Tuesday, hitting a seven-month peak during Asian trading hours at around 130.45 per dollar.

The post Dollar Hits Two-Week High as Yen Jumps to Seven-Month Peak appeared first on theprimarymarket.com.

In fact, the U.S. dollar has been doing so well lately that it’s closer to the Euro than it’s been in the last decades. For the last 20 or so years, Europe has held an upper hand in the currency department, but now America is keeping the country on its toes.

But it’s not just Europe that needs to watch its back. It turns out that the Japanese Yen is down a whopping 20% when matched up against the U.S. dollar in the last year alone. This is something that’s virtually unprecedented in the modern age of finance.

But this is nothing compared to the polarizing difference of Bitcoin. The Cryptocurrency giant, after enjoying years of meteoric success, has found itself crashing 70% again the dollar since its record high in November.

This is all very good news for Americans that are traveling abroad or looking to go on major shopping sprees. However, it’s not so great for investors in global markets, who will now be looking to recover from this major change.

The post U.S. Dollar Experiences Major Surge appeared first on theprimarymarket.com.