Fundamental Overview The US Dollar yesterday weakened across the board despite a higher than expected US Core PPI and Fed Chair Powell acknowledging the need to proceed more carefully with rate cuts from here on. This might be a signal that the market could be fine with just two rate cuts priced in for 2025 […]

Fundamental Overview The US Dollar got a bit of a boost this week as Fed Chair Powell reiterated that 50 bps of easing by year end remains the base case. The market’s probability for the Fed to cut by 50 bps in November fell from 51% to 40% as a result. On the data side, […]

Fundamental Overview The surprisingly weak US NFP report last Friday triggered risk-off flows. Interestingly, while many major currencies weakened against the USD, the Euro strengthened a lot which reminded the famous words from former ECB’s President Draghi when he said “The Euro is like a Bumblebee. This is a mystery of nature because it shouldn’t […]

The miss in the US CPI report last week triggered a heave US Dollar selling across the board. The market started to price out the more hawkish expectations and now sees the July hike as the last one for this cycle. Moreover, the resilient labour market and the rising consumer sentiment point to a soft-landing […]