ECB in a bind, BOJ plays stick not twist, and why the dollar is looking weak

ECB in a bind, BOJ plays stick not twist, and why the dollar is looking weak
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Inflation may become the hot new topic for financial markets as we move into the latter stages of the summer months. The July CPI rate for the Eurozone came in stronger than expected at 2.1%, the fastest rate of price growth since 2012. Core prices are also rising, albeit at a slower pace, to 1.1%. […]

Week Ahead: 30th July 2018

Week Ahead: 30th July 2018
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  Central banks and data deluge to drive August markets As we start a new week the Vix index (Wall Street’s fear gauge) is sitting at 13.45, a notch below the average of the past 12 months, which comes in at 13.68. However, this figure is worth watching, as it could end the week significantly […]

Two things to watch in FX this week

Two things to watch in FX this week
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Two key events are dominating the FX world this morning: the first is the Reuters report that the Bank of Japan will alter its stimulus programme. The yen is the top performing currency in the G10 this morning, which reverses a month-long period of weakness for JPY. The report suggests that the BOJ is looking […]

Why stocks aren’t sweating the commodity decline

Why stocks aren’t sweating the commodity decline
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Source: Bloomberg and Capital Index Usually when commodity markets move sharply it can spell danger for the broader financial markets. Thus, the sharp decline in some metals on the back of global trade war fears, and the overall malaise in the commodity markets might be a warning sign that other asset classes could be at […]

UK banks brush off EU access fears as US inflation fails to move the Fed’s dial

UK banks brush off EU access fears as US inflation fails to move the Fed’s dial
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Source: Bloomberg and Capital Index US CPI was in-line with expectations for June, suggesting that prices are rising at a manageable rate. The annual rate of headline inflation rose to 2.9% from 2.8%, while core prices rose to 2.3%, the highest level in 2 years. The dollar index, which had rallied into the data, backed […]