Market Outlook

The Japanese yen strengthened against the US dollar following the Bank of Japan’s decision to raise interest rates for the first time since July. This move pushed Japan’s two-year and five-year government bond yields to their highest levels since 2008, while 10-year JGB futures dropped as much as 34 ticks to 140.59. Investors are now […]

Global markets are grappling with the implications of President Donald Trump’s initial days in office, which have delivered a mixed bag for investors. While Trump reiterated his tariff threats against China, fears of an immediate escalation in the trade war have eased as the world’s second-largest economy has so far been spared direct action. BOJ

The US dollar rallied against all Group-of-10 currencies, driven by trade policy developments and shifting monetary expectations. The unexpected decline in Chinese equities caught some market participants off guard, as China largely avoided the immediate impact of President Donald Trump’s early tariff threats, which instead focused on Canada and Mexico. BOJ Rate Decision in Focus:

The US dollar advanced as traders absorbed President Donald Trump’s tariff rhetoric on his first day in office, tempered by the absence of immediate sweeping measures targeting all trade partners. While the president reaffirmed plans to impose tariffs of up to 25% on Canadian and Mexican imports as soon as February 1, markets found some

The US dollar extended its decline this week, building on last week’s retreat that ended a six-week rally. Renewed risk appetite emerged after discussions between former President Donald Trump and Chinese President Xi Jinping on trade, TikTok, and fentanyl, setting a potential tone for US-China relations that could have significant implications for global forex markets.

Inflation Trends Highlight Persistent Challenges December’s US inflation report delivered mixed signals for policymakers and markets alike. The core Consumer Price Index (CPI) eased to 3.2% year-over-year, while the headline CPI climbed to 2.9%, surpassing the Federal Reserve’s 2.0% target. This divergence underscores the complexity of managing inflation pressures, even as core prices exhibit signs

Improved Risk Appetite Following US Inflation Data Investor sentiment across global markets brightened as US inflation data pointed to potential progress toward the Federal Reserve’s long-term target. While Fed policymakers remain cautious, emphasizing the need for further evidence of cooling inflation before contemplating additional rate cuts, the data has sparked optimism about a sooner-than-expected policy

Dollar Weakens as Gradual Tariff Plan Sparks Optimism The US dollar edged lower following reports that President-elect Donald Trump’s economic team is considering a phased approach to implementing tariffs. This measured strategy contrasts sharply with earlier threats of levies as high as 60% on Chinese goods, which have cast a long shadow over Asian markets.

Global Markets Brace for Nonfarm Payrolls Amid Fed Policy Clarity As global financial markets enter 2025, volatility remains elevated, with Treasury yields climbing steadily as investors reassess the Federal Reserve’s rate outlook. Several Fed officials emphasized Thursday that rates are likely to remain at elevated levels for an extended period, with further cuts contingent on

US President-elect Donald Trump’s tariff-centric policies are inherently inflationary, raising concerns that the current environment of mid-level interest rates could persist for an extended period. Despite efforts by the Federal Reserve to curb inflation, the stubbornly high price levels suggest that the path to lower rates may be slower than previously anticipated. Treasuries Hold Steady