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Sterling rallied broadly today, driven by BoE’s Monthly Decision Maker Panel survey, which underscored a complex economic outlook that reinforces the central bank’s cautious approach to policy easing. The survey revealed a mixed picture of inflationary and deflationary pressures. Notably, 54% of businesses anticipate raising prices in response to National Insurance contribution hikes outlined in
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Dollar steadied after yesterday’s selloff, recovering slightly as markets braced for the non-farm payroll report. Traders appear increasingly confident about a December rate cut, shifting the focus of today’s employment data toward its implications for January’s FOMC meeting. While the report may still trigger some market volatility, many participants seem inclined to look past this
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High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not
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US financial markets basked in risk-on sentiment overnight, with S&P 500 and NASDAQ scaling new record highs. Bitcoin seized the momentum, surging past the psychologically significant $100K mark. Dubbed the “Trump Trade,” optimism over President-elect Donald Trump’s policies has returned in full force and is likely to persist, barring surprises from tomorrow’s pivotal non-farm payroll
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Trump’s recent comments and trade policies reveal contradictions regarding his stance on the USD. While protectionist policies could suggest a preference for a weaker USD to reduce trade deficits and boost competitiveness, fiscal spending and borrowing needs may lean toward a stable or strong USD to sustain debt financing and avoid inflationary pressures. Key Points:
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Swiss Franc strengthened broadly after inflation data for November indicated a modest uptick, stabilizing after months of decline. Although the annual CPI reading missed market expectations, the stabilization reduces immediate pressure on SNB to implement a significant 50bps rate cut at its upcoming policy meeting this month. However, uncertainty still lingers as SNB faces the
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Dollar’s rally extended its rally, bolstered by stronger-than-expected ISM manufacturing data. The notable jump in new orders and easing prices suggest an improving outlook for the US manufacturing sector. In the background, the greenback had a head start for the week after US President-elect Donald Trump adopted a firm stance on maintaining the Dollar’s dominance,
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High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not
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