British CPI

Risk Aversion Returns

May 18, 2022

It’s not surprising that the investor move back into riskier assets over the prior three sessions proved to be short-lived because the reasons behind this year slide in equities and rise of the dollar hadn’t disappeared. The three main U.S. stock market indices are down 0.5-1.0% in futures trading. Smaller dips have occurred in Europe. […] More

Highest British and German CPI Inflation in 357 and 354 months respectively

January 19, 2022

Inflation and Covid-19 infections remain elevated around the world. Investors at the moment are reacting mostly to the inflation numbers, believing that economic activity has become more insulated against the pandemic. The expectation that central banks will continue tilting away from stimulus lifted ten-year sovereign debt yields overnight by five basis pints in the U.K., […] More

Meaningful Data Released Today in China, U.S., U.K., Japan and Euroland

September 15, 2021

The dollar fell overnight by 0.2% against the DXY weighted index and sterling, 0.4% versus the Japanese yen, and 0.1% relative to the euro and Swiss franc. Ten-year sovereign debt yields rose two basis points each in the United States, Germany and Great Britain but slipped a basis point in Japan. Equity markets mostly dropped […] More

Cloudy Picture: Inflation Still Elevated but Delta Variant Poses Growth Risk

August 18, 2021

Central bankers and private investors are continuing to balance the pressures of elevated inflation on the one hand but a less certain strong recovery on the other. This has made for choppy markets. Overnight movements in the dollar were narrowly mixed, with net dips of 0.2% against sterling and 0.1% relative to the euro, loonie, […] More

Bitcoin Disaster, Equities Fall Again, and Mixed Inflation News

May 19, 2021

The Bitcoin fallout from Elon Musk’s reversal on Tesla-for-bitcoin transactions has been huge. The cryptocurrency dropped over 20% overnight and at its intra-day low was showing a 43% loss over the past five weeks to its lowest level in 11 weeks. Wednesday’s been a difficult day for equity trading as well, with losses in the […] More

Dollar Rebound Extended 0.3%

February 17, 2021

The dollar is 0.3% stronger on an effective trade-weighted basis. It is up 0.4% against the euro and near the day’s high and touched a 5-month high of 106.22 Japanese yen overnight. The reviving dollar reflects climbing long-term U.S. interest rates as investors are betting on the Congress approving a pandemic relief package of around […] More

Coronavirus Infections Kicking into Higher Gear

October 21, 2020

The trend in new cases of Covid-19 are intensifying and becoming more dispersed in both Europe, where many governments have been compelled to reimpose restraints on social activity, and the United States where the 24-hour increase again topped 60k. Optimism has swelled that a U.S. fiscal stimulus may get passed before the election. Talks continued […] More

Greater Pessimism Surrounding Brexit, U.S.-China, and Global Growth

October 16, 2019

Investor confidence regarding the main geopolitical risks of Brexit and U.S.-Sino trade continue to flip-flop seemingly on a daily basis, often without any concrete new actions. Still no deal on Brexit has been announced with the main sticking point being the handling of Northern Ireland’s border with Ireland, and time is getting exceedingly short. Trade […] More

Fed Expected to Announce Interest Rate Cut Today But Forward Guidance Uncertain

September 18, 2019

Investors will be focused not on what actions the Fed implements today but rather on what is said about future monetary policy where FOMC voting members appear divided. Macroeconomic forecasts will be updated, and Chairman Powell will hold a press conference afterward. The dollar has been decently bid today, with gains overnight amounting to 0.4% […] More

Yield Curve Inversion Amplifies Recession Fears and Flight to Safe Assets

August 14, 2019

The 2-year Treasury note yield edged marginally above the 10-year yield for the first time in 14-1/2 years. This and a similar yield curve inversion in the U.K. happened as investors selectively fixated on weak data while ignoring some better-than-expected statistics, causing share prices to drop sharply in Europe and the United States. Losses amount […] More

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