The upcoming release of the May Non-Farm Payrolls (NFP) report on Friday, June 7 at 1230GMT is poised to be a crucial indicator for the US economy and the Federal Reserve’s next moves. With the market largely anticipating a continuation of robust labor market conditions, here’s what to expect and the potential implications for monetary…
Oil prices rarely stay at the bottom whenever they see a sharp sell-off. Given a few days to digest to OPEC+ statement on keeping production levels as they are people are now concluding that Saudi Arabia will be unlikely to boost its own production as the loop holes over OPEC member commitments provided. While the…
Gold saw early demand from Asia, retreated then jumped back up again on the back of the ECB’s decision to cut rates. This could be a chicken or egg question but this mostly underscores the role of Gold as a hedge for inflation. The logic being lower interest rates could boost consumption that leads to…
As the European Central Bank (ECB) approaches its policy meeting this Thursday, the financial markets are almost unanimously expecting a rate cut. With a 96% probability priced in for a 25 basis point reduction, the ECB’s decision will be pivotal not just for immediate monetary policy but also for setting the tone for the eurozone’s…
With an impending ECB decision that could widen the interest rate gap between the UK and the Eurozone we look to EURGBP for possible trades. Note that on a weekly scale we are at a support level that has been tested repeatedly since last year around the 0.84900 region. A rate cut by the ECB…
Today’s key event for financial markets will be the ECB’s Monetary Policy Statement and Interest Rate decision at 1215GMT. The move to cut rates by 25bps has largely been telegraphed with the Main Refinancing Rate seen easing to 4.25%. Among the currencies we note that there appears to have been little pricing in of the…
The recent pullback among the yen pairs has likely cleared a good number of carry trades allowing us the opportunity to rejoin the game from better prices levels. None there less we do have rate decisions coming from Canada and Europe today and tomorrow with consensus calling for rate cuts suggesting it will be more…
The Bank of Canada widely telegraphed to cut its Overnight Rate by 25bps today at 1345GMT. We find it interesting that USDCAD has thus far failed to price in the move having been stuck in a consolidation the past two months. Should the BoC proceed with the expected cut we will be looking for a…
The Bank of Canada (BoC) is poised for a potentially pivotal monetary policy decision on June 5, 2024, at 13:45 GMT. Markets are highly anticipative of a 25 basis point reduction in the Overnight Rate, which would bring it down to 4.75% from the current 5.0%. This expected adjustment would be the first rate change…
Though also firmer Gold was not quite the big winner against the dollar with XAUUSD still stuck in its range play from last week. For now market is waiting for the next big catalyst for a test of the new historic highs though the more we see inflation metrics easing globally and geopolitical tensions getting…