Trade Of The Week: Will BoE “Go Hard Or Go Home” On Rates
Take cover! Central banks across the globe have pulled out their big guns and heavy monetary artillery in the face of soaring inflation.
Last week, the Federal Reserve (Fed) raised interest rates by 75 basis points for the second straight month. In July, the Bank of Canada (BoC) hiked rates by a whooping 100 basis points! Even the European Central Bank (ECB) surprised markets with a 50-basis point hike – taking its policy rate out of negative territory in one clean move.
Week Ahead: BOE to sustain GBPUSD above 50-day SMA?
The first week of August is set to feature a host of key events that could shake up markets, including the latest US jobs report, fresh Wall Street earnings, and perhaps even a new OPEC+ deal.
Still, the central bank watch remains front and center as the Reserve Bank of Australia and Bank of England could hike their respective rates by another 50 basis points each in the coming week.
Technical Outlook: Dollar Weakens On Less Hawkish Fed
Earlier in the week, we questioned whether another jumbo Fed rate hike would be enough to satisfy dollar bulls.
Well, we got our answer yesterday evening after the Federal Reserve raised interest rates by 75bps for the second straight month to tame inflation. King dollar offered a muted response and was more concerned with comments from Federal Reserve Chairman Jerome Powell.
Fed Decision: What you need to know
When is it due?
Here are the key points to look out for:
Big Tech earnings and Fed meeting in focus
Asian markets edged higher on Tuesday, drawing support from China’s technology sector as investors braced for another busy and potentially volatile week for financial markets.
Trade Of The Week: Can Fed Satisfy Dollar Bulls?
The phrase “what goes up must eventually come down” springs to mind when looking at the dollar’s performance over the last few days.
Week Ahead: Lower dollar if Fed surprises with “smaller” 50bps hike
Are you ready for yet another jumbo-sized Fed rate hike?
Markets have been preparing for such an outcome at the upcoming FOMC policy decision, which will star in next week’s economic calendar
Monday, July 25
ECB Decision: What you need to know
Investors and traders worldwide are keenly anticipating the European Central Bank’s policy announcements today.
Here are some major points to look out for:
Markets shaky ahead of ECB meeting
A sense of caution has taken hold of financial markets as investors adopt a guarded stance ahead of another week packed with key economic reports and risk events. Asian shares got no love this morning, following overnight declines on Wall Street after Apple announced plans to slow hiring and spending growth next year. Renewed fears around Covid-19 outbreaks in China added to the negative vibe, fanning concerns about slowing economic growth.
