Category: Currencies

The Federal Reserve and the European Central Bank maintain a steadfast stance on inflation, consequently affecting interest rates. A gathering in Sintra presented an opportunity for central bankers to engage in insightful discussions. Both Lagarde and Powell echoed the sentiment that the surge in monetary costs has not reached its apex. This suggests the introduction…

In his recent congressional testimony, Powell asserted that additional interest rate hikes might be required to combat inflationary pressures within the United States. Yet, market reactions imply a level of skepticism towards the Federal Reserve’s position, potentially hinting at apprehensions about the European Central Bank’s prospective assertiveness, as evidenced by the marked depreciation of the…

Hawks Fly High in Washington and Frankfurt The market most likely had a sense of what was going to transpire with interest rates following the release of the U.S. inflation data last Tuesday. With an anticipated figure of 4.1% following April’s 4.9% (5.2% for the core data, down from the previous 5.5%), U.S. inflation played…

The United States, as is often the case, managed to dodge the default bullet at the last minute. The spotlight now swings to the Federal Reserve (Fed) and the European Central Bank (ECB), whose impending monetary policy decisions are set to shape the trajectory of the stock and bond markets over the summer. These markets…