By Enrique Diaz – Alvarez* The annual meeting of the world’s central bankers in Jackson Hole delivered a decidedly hawkish message, led by US Federal Reserve Chairman Powell giving a very short and clear speech. However, currency markets seem to have priced in this development, and the reaction was relatively subdued. All G10 currencies are […]
Tag: ebury
Ebury: All eyes on the global meeting of central bankers at the end of the week
By Enrique Diaz – Alvarez, Chief Risk Officer of the international payments company Ebury Estimates of US interest rates rebounded after falling following a positive inflation report last week. Federal Reserve officials have talked up the prospect of another big rate hike in September, and markets are now evenly split between a 50-basis-point hike and […]
Ebury: Fully dependent on the macro future path of interest rates
By Enrique Diaz – Alvarez* The US economy now meets all the technical criteria to be labeled a recession, and the Fed’s rate hikes are now entirely dependent on inflation and employment data that will be reviewed from meeting to meeting. This realization sharply reduced US yields, which in turn sent the dollar down against […]
Ebury: Eyes on US and Eurozone Inflation
By Enrique Diaz – Alvarez* Disappointing economic data from the US last week lowered yields worldwide, and removed any chance of a 100 basis point rate hike by the Federal Reserve. The European Central Bank’s surprise 50 basis point hike had surprisingly little immediate impact on the euro, which nevertheless joined the general recovery against […]
Ebury: Recession fears drive investors to safe havens
By Enrique Diaz – Alvarez* Last week was a fitting end to a brutal first half of the year for risk assets in general. Recession fears are now driving currency markets more than central bank policies or interest rate differentials, and the dollar appears to be benefiting from this. So last week, as stocks tumbled […]
Ebury: Look at the data on inflation in the eurozone in June
By Enrique Diaz – Alvarez * The G10 currencies closed last week not far from where they started, as financial news was minimal and investors assimilated announcements and messages from central banks. The winner of the week was the Swiss Franc, amplified by the consequences of the bold surprise of the Swiss National Bank earlier […]
Ebury: How the Swiss franc topped the coin standings last week
By Enrique Diaz – Alvarez An unusual winner was at the top of the coin standings last week: the Swiss franc. The National Bank of Switzerland was among those central banks that showed a bold stance, and surprised the markets with a rise of base units while it was not expected to make any move. […]
Ebury: Investor eyes on the ECB this Thursday
From the analysts of the fintech international payment company Ebury We have long said that the ECB is behind the curve in interest rate hikes in the current global tightening cycle, and that the current policy mix is completely out of the economic realm. This is evident from the rise in consumer goods prices, which […]
Ebury: The question is how much interest rates will rise in the US
By Enrique Diaz – Alvarez * Some of the positives that came out of the US last week helped alleviate growth concerns. In addition, US Federal Reserve officials continue to use bold rhetoric. US interest rates rose sharply, providing support for the US dollar and driving most major currencies down. The main exceptions were the […]
Ebury: Volatility in view … in foreign exchange markets
By Enrique Diaz – Alvarez * Last week we noticed some strange action in the market. The headlines of the financial newspapers were dominated by the relentless sell-off in the global stock markets, which led the S&P 500 to flirt with the informal limit of the formation of a downward trend at 20% below its […]