Ipek Ozkardeskaya
Swissquote Bank Ltd
It's been two weeks since I left, and in that time, the markets plunged into chaos. Now that I'm back, things have finally returned to calm waters. In this episode, we talk about the unwind of the yen carry trades, the weakness of the US jobs data and the market’s overreaction to both. We also talk about how inflation numbers are supportive of further rate cuts from the Fed and other major central banks and how these expectations should impact pricing across the FX markets.
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
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EUR/USD hovers above 1.1000 ahead of US Retail Sales data
EUR/USD consolidates above 1.1000, within a familiar range in European trading on Thursday. A positive risk tone and a pause in the US Dollar recovery underpin the pair but the upside remains capped, as traders turn cautious ahead of the key US Retail Sales data.
GBP/USD clings to gains near 1.2850 after UK data
GBP/USD trades with moderate gains near 1.2850 in the European session on Thursday. The data from the UK showed that the GDP expanded at an annual rate of 0.9% in Q2 as expected, helping Pound Sterling stay resilient against its peers. US data is next in focus.
Gold price rises above $2,450 on growing expectations of Fed rate cut in September
Gold price gains above $2,450 as traders widely anticipated the Fed will begin reducing interest rates from September. The US CPI data for July boosted confidence that price pressures will return to the desired rate of 2%.
AAVE price eyes for rally after retest of support level
Aave (AAVE) price trades slightly higher during the Asian trading session on Thursday after surging on Wednesday. On-chain data shows that open interest, daily active addresses and development activity are rising, signaling a bullish trend.
Fed rate cut in September? The data will decide
The US economy is currently navigating a period of slowing growth, persistent inflation, and a tight labour market. The Fed's aggressive monetary policy tightening over the past year has started to show results in moderating inflation