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The market got caught leaning the wrong way. The weakness in April's high-frequency US data encouraged participants to push the US two-year yield to its recent floor near 4.70% and took the 10-year yield to two-month lows, slightly above 4.25%. The Dollar Index was driven below the uptrend line drawn off the December 2023 and March and May 2024 lows. We ...
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Further reductions of European Central Bank borrowing costs may risk a stronger impact on the euro exchange rate and inflation, according to Governing Council member Robert Holzmann. “If the original assumption of three rate cuts were to materialize, and the Federal Reserve didn’t respond, it would certainly have an impact on the exchange rate, and with it ...