Market Outlook

The yen tumbled to a nearly three-month low, slipping as much as 1% to 153.88 per dollar on Monday, after Japan’s ruling coalition missed securing a majority in parliament. The unexpected election outcome, resulting from Prime Minister Shigeru Ishiba’s snap election gamble, has spurred concerns over potential political instability and dampened hawkish expectations for the Bank […]

U.S. Treasury yields dipped for a second consecutive day as investors recalibrated expectations for Federal Reserve rate cuts, factoring in the risks surrounding the impending presidential election. The dollar held firm, poised for a fourth consecutive weekly gain, as earlier spikes in yields triggered a risk-off sentiment, prompting traders to pare back their bets on aggressive

The recent surge in U.S. Treasury yields and the strengthening of the U.S. dollar are dampening risk appetite in global markets, particularly in regions sensitive to U.S. monetary policy shifts. Investors are closely monitoring the Federal Reserve’s easing trajectory, with swap traders no longer fully convinced of interest rate cuts during the remaining two policy

Financial markets are adjusting their outlook as traders reassess the likelihood of further Federal Reserve rate cuts this year. Expectations for aggressive rate reductions have tempered, with the central bank signaling a preference for a slower, more cautious approach. The Fed faces uncertainty over how low it should ultimately cut rates, especially given the resilience of the

Gold surged to a record high, reflecting heightened demand as geopolitical tensions in the Middle East intensified and investors positioned themselves ahead of the closely contested U.S. presidential election. The precious metal touched an all-time peak of approximately $2,730 an ounce, driven by a confluence of factors including global economic uncertainty and escalating conflict in the

US retail sales posted a stronger-than-expected increase, shaking up market sentiment and prompting traders to reassess their expectations for further Federal Reserve rate cuts this year. The robust retail sales data suggests resilient consumer demand, leading investors to trim their wagers on the Fed implementing two additional rate cuts by year-end. The world’s largest bond market

The European Central Bank (ECB) is expected to cut interest rates for the second consecutive meeting, responding swiftly to a troubling combination of falling inflation and a rapidly deteriorating economic outlook across the eurozone. Just five weeks after its last rate reduction, market analysts, including those at SARACEN MARKETS, anticipate the ECB will announce a 25

The British pound weakened against the dollar after the UK’s inflation rate fell below the Bank of England’s (BoE) 2% target for the first time in over three and a half years, signaling a potential shift in monetary policy. The drop in inflation heightens expectations for a second interest rate cut next month, aimed at bolstering

The yen outperformed all G-10 currencies this week, holding close to the psychologically significant 150-per-dollar level as investors remain wary of potential intervention by Japanese authorities. Market participants are closely watching for signs of action as the yen’s weakening trajectory amplifies concerns around central bank measures to stabilize the currency. In the U.S., inflationary pressures resurfaced

Traders are bracing for key central bank decisions this week, with the European Central Bank (ECB) expected to announce a 25-basis point rate cut, driven by softer economic activity and a faster-than-expected disinflation trend across the Eurozone. Markets are now pricing in a 95% probability of this move, signaling that downside risks to European macroeconomic conditions and interest