Market News
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European Central Bank: Inflation-driven hike prospects – DBS
DBS Group Research expects the European Central Bank (ECB) to raise the deposit facility rate to 2.50%, citing a resilient inflation-growth mix in the Eurozone. The report notes headline inflation has moved further above target, while core pressures remain contained for now.
Federal Reserve: Close call on further tightening – Commerzbank
Commerzbank’s Dr. Christoph Balz expects the Federal Reserve to keep rates unchanged, but highlights a significant risk of another 25 bps hike.
Japanese Yen: Sharp rebound and Fed repricing – MUFG
MUFG’s Michael Wan highlights a sharp strengthening in the Japanese Yen, with USD/JPY dropping from 160 to around 155.30 as the Dollar broadly weakened and Asian FX gained.
Canadian Dollar steadies at 1.3800 awaiting employment data from US and Canada
The Canadian Dollar (CAD) holds minor losses against the US Dollar (USD) on Friday, as the USD/CAD pair trades just above 1.3800 after bouncing from two-week lows at 1.3765.
India FX Reserves, USD: $740.8B (August 24) vs $729.33B
India FX Reserves, USD: $740.8B (August 24) vs $729.33B
British Pound pulls back from session highs as BoE Bailey tames rate hike hopes
The British Pound (GBP) has retreated from session highs just below 1.3550 against the US Dollar (USD) during the London trading session, returning to levels near 1.3520 and turning negative on the daily chart.
Australian Dollar edges higher vs Yen as RBA tightening bets meet BoJ normalization hopes
AUD/JPY advances on Friday and trades around 112.65 at the time of writing, up 0.39% on the day.
Ireland Gross Domestic Product (QoQ) came in at 10.2%, above expectations (3.9%) in 2Q
Ireland Gross Domestic Product (QoQ) came in at 10.2%, above expectations (3.9%) in 2Q
Ireland Gross Domestic Product (YoY) above expectations (-1.6%) in 2Q: Actual (-0.4%)
Ireland Gross Domestic Product (YoY) above expectations (-1.6%) in 2Q: Actual (-0.4%)
BoE's Bailey defends central bank flexibility, warns of bond market pressures
Bank of England (BoE) Governor Andrew Bailey said on Friday that monetary policymakers have some discretion over how quickly they bring inflation back to target, while stressing that returning inflation to the target remains imperative.
Canadian Dollar: Data volatility guides Bank of Canada – Commerzbank
Commerzbank analysts Norman Liebke and Michael Pfister report that the Bank of Canada kept its policy rate at 2.25% but adopted a more hawkish tone as inflation risks rise from higher energy prices and trade tensions with the US.
Indian Rupee: Rate hike path supports currency – Societe Generale
Societe Generale strategists note that the Indian Rupee (INR) rallied to its strongest level against the US Dollar (USD) since late June, helped by active RBI intervention and sizeable FX mobilisation flows.
Japanese Yen: Stronger yen driven by fundamentals – MUFG
MUFG’s Lee Hardman notes that the Japanese Yen (JPY) has strengthened sharply, pushing USD/JPY back towards the 155.00 support level that has held several times this year.