DBS Group Research economist Sherilyn Chew analyses Indian government bond performance after the Reserve Bank of India’s (RBI) June 5 capital flow liberalisation.
Brazil Mid-month Inflation below forecasts (0.44%) in June: Actual (0.41%)
Mexico Jobless Rate above forecasts (2.6%) in May: Actual (2.8%)
Izidor Flajsman at TD Securities analyses past US equity ‘lost decades’ and finds that headline indices delivered flat to negative real returns, while Small Cap, Value, Energy and Non-Durables outperformed.
Mexico Jobless Rate s.a rose from previous 2.6% to 2.7% in May
EUR/JPY trades around 183.90 on Thursday at the time of writing, up just 0.06% on the day, a near-symbolic gain that reflects market hesitation in the face of two diverging yet both tightening monetary dynamics.
BNY’s Geoff Yu argues that weaker precious metals are undermining the terms of trade for South Africa and Peru, limiting upside for South African Rand (ZAR) and Peruvian Sol (PEN) even in a supportive carry backdrop.
The British Pound (GBP) shows mild gains against the US Dollar (USD) on Thursday, as investors trim their USD long positions ahead of the release of the US Personal Consumption Expenditures (PCE) Price Index later in the day.
TD Securities strategists expect May United States (US) core Personal Consumption Expenditures (PCE) Price Index inflation to firm, driven by services, while headline PCE is lifted by higher energy prices.
Societe Generale’s Kenneth Broux notes that Latin American currencies have weakened as the Dollar rebounds, with USD/MXN and USD/BRL breaking above key hurdles at 17.50 and 5.20.
Georgette Boele at ABN AMRO highlights that lower Oil and gas prices should, in principle, weigh on the Dollar and support the Euro, but EUR/USD has shown only a limited reaction so far.
The USD/JPY pair trades close to its fresh all-time high near 162.00 during the European trading session on Thursday. The pair advances as the US Dollar (USD) continues to outperform its peers due to firm speculation that the Federal Reserve (Fed) will tighten its monetary conditions this year.
