In 2024, the U.S. stock market is robust. Investors await an inflation report to guide potential Federal Reserve rate cuts. Positive job numbers in February suggest room for cuts without recession fears. Experts advise caution, emphasizing monitoring inflation and market dynamics. Confidence remains in the economy's resilience and the benefits of gradual rate cuts aiming for stable inflation.
Global equity markets are at new highs, driving G10 FX carry trades up 4.0%. The NZD leads with a hawkish RBNZ outlook, raising expectations for 2024 rate hikes. The upcoming RBNZ policy update is crucial, favouring long NZD/JPY trades.
The blog post covers recent shifts in USD/CHF trading, focusing on Switzerland's increased foreign reserves and potential SNB interventions. It discusses upcoming data releases affecting SNB interest rate decisions and how expectations for rate cuts by the Fed and ECB are impacting currencies like the CHF and JPY. Additionally, it touches on factors driving USD/JPY movements and changes in Japanese household investments.
The Reserve Bank of Australia hinted at delaying rate cuts, causing a surge in the Australian dollar (AUD), despite maintaining the policy rate at 4.35%. We're maintaining a short AUD/USD position amid uncertainties.
Explore last week's market dynamics, from the limited impact of the ECB meeting and more. We give our EUR/USD outlook. We maintain a bearish forecast. Read why!
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