MarketPulse

Key takeaways Hawkish Fed supports USD/JPY: The Fed’s rate hike and signal of further tightening reinforce the US dollar’s yield advantage over the yen.BoJ guidance is the key catalyst: A hike to 1.25% is largely priced in; Ueda must signal further tightening to sustain yen strength.Japan CPI composition matters: Stronger services and underlying inflation co...

Headline inflation increased from 2.6% to 2.9% year-on-year.Core inflation remained at 2.6%, above the 2.5% forecast.Services inflation held at 3.4%, instead of rising to 3.5%.Wage growth slowed, while unemployment benefit claims increased by 27,800.The Bank of England is expected to leave interest rates unchanged tomorrow.Energy pushes...

A September Fed rate hike is increasingly likely, with market-implied odds rising above 85% after stronger-than-expected core inflation data.Inflation risks remain elevated, driven by persistent price pressures, higher oil prices, strong economic growth and rising consumer inflation expectations.Further rate hikes may follow, while tighter monetary policy c...

Key takeaways ECB hike largely priced in: Markets widely expect the ECB to raise its deposit rate by 25 basis points to 2.50%. The bigger catalyst for EUR/USD is whether Christine Lagarde signals further tightening.Energy inflation has shifted the ECB outlook: Brent crude above US$100 and Eurozone inflation above 3% have revived hawkish policy risks.ECB-Fed dive...

Key takeaways Macro-structural shifts: Divergent central bank policies, persistent inflation, and targeted intervention are driving major realignments in global capital flows and currency valuations.US rate dynamics: Persistent inflation (PCE at 3.7%) and hawkish Fed guidance have shifted market sentiment toward a near 50/50 split between a hold and a 25 bps hike for September 2...