It appears a well-accepted fact that the plunge in the US dollar earlier this year came about because global investors in US assets decided to increase their hedge...
Unless just about everybody is wrong, the Federal Reserve will cut the fed funds target by 25-bps to a range of 4.0%-4.25% this week.
A likely FED rate cut this week might be seen as a catalyst for the US dollar weakness but rate cuts themselves are probably not the driver here.
The Fed looks set to re-start rate cuts next week and could take the fed funds target rate down by as much as 150-bps by the middle of next year. However, we doubt rates...
Major G10 currencies do not seem to be particularly attractive right now and that’s opening the door for the more minor G10 currencies, the renminbi, and other emerging...
Those pushing for lower rates from the Fed, such as Governor Waller cite well-anchored inflation expectations as one reason to act. But many analysts think that this is...
Many analysts anticipate that the US dollar will undergo a second period of notable weakness in coming months. It might not be as dramatic as that seen this spring but...
Sometimes important announcements produce significant and instantaneous reactions in currencies. Be they about data, policy – central bank sackings. But sometimes they...
FED independence has increased over time and inflation has come down. But correlation is not the same as causation.
Given the State Bank of Vietnam's (SBV) intervention and the approaching month of September, when the Fed is generally expected to announce a rate cut, the USD/VND...
At Jackson Hole, Fed Chair Powell signaled a possible interest rate cut at the U.S. central bank's meeting next month.
According to many analysts, the gold price is unlikely to rise sharply next week after the Jackson Hole Symposium because investors remain cautious.
Many analysts are pretty sure that Fed Chair Powell won’t say this at Friday’s Jackson Hole symposium that the Fed has been put in an impossible position by politics....
G10 currency volatility remains at very low levels but many analysts expect volatility to pick up as we go through the rest of the year.
The current economic slowdown pushes the Fed to lower rates to around neutral, or even lower, but persistent inflation forces Fed to ‘tweak’ rates back up, possibly late...
We see three reasons why the US dollar could slide in coming weeks and months. The slide could push euro/dollar into a 1.20-1.25 range and drag dollar/yen down to the...
The narrowing VND-USD interest rate differential during July helped curb the upward pressure on the exchange rate. However, pressure on USD/VND will remain big by...
The Fed has not cut rates so far this year but FOMC members forecast two rate cuts in 2025 at their June meeting and the market is priced for two cuts as well.
Many analysts expect the Bank of England (BoE) to cut the base rate by 25 bps today. They would like to see more. But more should come in time as they see the Bank...
Even if some of the uncertainty related to the US’s erratic tariff policy starts to ease off, there are still the economic impacts of tariffs to consider and, these are...
The tariff-related vulnerability of the US dollar switches to a vulnerability borne of Federal Reserve policy. As a result, the US dollar could fall with euro/US dollar...
If interest rates have any bearing at all on currencies, it is in real (inflation-adjusted) terms, not nominal terms. So, the fact that the Fed looks as if it will cut...
VN
EN