FED goes all-in to fight inflation and markets are yet to grasp this shift in the policy stance The tectonic shift in the Federal Reserve’s policy, according to which the regulator no longer expects that inflation will naturally find its way to the ...

Daily Market Insights & Charts

Central banks of major economies fail to keep up with the Fed tightening pace Volatility in FX market remains stubbornly high, a series of upside surprises in inflation data for May apparently caused "tectonic shifts" in policy stances of many ...

Daily Market Insights & Charts

The Fed is ready to pay a high price to suppress inflation The Fed raised key interest rate by 75 basis points and signaled that a similar move could be expected in July. The announced pace of tightening means that the federal funds rate is likely ...

Daily Market Insights & Charts

Preview of the Fed meeting: 75 bp move is fully priced and “sell the facts” scenario is likely in the Dollar The Fed will likely yield to the hawkish market expectations and hike interest rate by 75 bp today. Nevertheless, even with such an ...

Daily Market Insights & Charts

Despite expectations of 75 bp rate hike from the Fed tomorrow, Dot Plot is the key thing to watch US money markets appear to be confident that the Fed will deliver a 75 bp rate hike at the meeting tomorrow. With US inflation trending higher towards ...

Daily Market Insights & Charts

Resilient US consumption helps stock to recover but May NFP could bring Fed tightening bets back into the market The macro data on the US economy released on Friday showed that high inflation in April failed to stifle consumer momentum in an economy ...

Daily Market Insights & Charts

Flight from risk gains momentum, setting stage for a rally in Gold The flight from risk assets becomes more apparent on growing concerns about global slowdown and even recession, in particular, markets appear to be pricing in that the US economy ...

Daily Market Insights & Charts

Gloomy China data sows panic, but EURUSD still has a chance to rebound A glimmer of hope after equity markets’ rebound last Friday was dampened after release of China economic data on Monday. Industrial production in China contracted 2.9% YoY ...

Daily Market Insights & Charts

US April CPI could be the key catalyst for S&P 500 rebound, deeper greenback sell-off An attempt by S&P 500 to decisively break below 4000 points on Tuesday was not successful, however, the subsequent rebound has not yet found wide support among ...

Daily Market Insights & Charts

Too difficult to resist to buy the dip as S&P 500 tumbles to crucial 4000 points support level Some stabilization in risk demand after yesterday's sell-off is helping currencies correlated with economic growth expectations (high-beta currencies) to ...

Daily Market Insights & Charts

Preview of the FOMC meeting: balance sheet run-off announcement is the key thing to watch The Fed is expected to deliver a 50 bp rate hike today and announce the start balance sheet runoff. Markets will be interested in the pace of QT, since this ...

Daily Market Insights & Charts

Reserve Bank of Australia hikes interest rate, vows to double down on fight with inflation The 10-year Treasury yield has finally reached an important 3% milestone, however, slipped below the level on lack of bearish consensus, greenback index ...

Daily Market Insights & Charts

The long overdue USD pullback has finally happened. What's next? US 10Y Treasury yield bounced off the key 3% area, dragging down greenback and initiating a chain of pullbacks in other assets that have demonstrated exuberant moves recently. DXY fell ...

Daily Market Insights & Charts

Bearish ECB signal sets the stage for further EURUSD decline, 1.05 level in sight Costly in terms of economic costs, the policy of “zero covid cases” forced the Chinese Central Bank to cut reserve ratio for banks by 25 bp on Monday. According to the ...

Daily Market Insights & Charts

Gold is poised to retake $2000 level and here is why US inflation report for March released on Tuesday stirred debates about inflation peaking (core inflation 6.5% vs. 6.6% forecast, used car prices -3.8%), but the bearish impact on the USD was ...

Daily Market Insights & Charts

New cycle high in US CPI is not enough for greenback to push higher US CPI in March surprised on the upside adding some strength to greenback. Broad prices rose by 8.5% against the forecast of 8.4%. On a monthly basis, consumer price index jumped ...

Daily Market Insights & Charts

Technical setup in the Dollar Index suggests upside rebound is in cards The rebound in SPX over the past 10 days was in the 2% of the strongest bear market rallies (defined as a fall 20%+ from ATH) in nearly 100 years of observations, indicating ...

Daily Market Insights & Charts

Dollar renews rally ahead of payrolls release, USDJPY targets 125 Stagflation risks seem to take their toll and after a short pause European currencies and the Japanese yen continued to depreciate against greenback. The dollar index rose by almost ...

Daily Market Insights & Charts

Double bottom in EURUSD suggests bearish breakout towards 1.08 may be in cards Fixed-income markets of advanced economies show signs of recovery after a heavy sell-off on Tuesday. European currencies cede ground against USD after a brief rebound. US ...

Daily Market Insights & Charts

Breakout in USDJPY could signal new leg of the bullish rally with 7-year high as target Powell's speech yesterday definitely impressed investors as the Fed Chair took the opportunity to communicate a possibility of faster rate hikes which was ...

Daily Market Insights & Charts