This didn't do the headlines but the fact is that Trade-weighted Euro reached a new all-time high this week
Source: Bloomberg
The NASDAQ (in yellow) has been massively decoupling from the FED balance sheet (in purple)
Source: The Market Ear, Refinitiv
The sp500 is now 3% above the level it was at when The Fed first hiked #rates in March 2022...
The #sp500 is now 3% above the level it was at when The #Fed first hiked #rates in March 2022...
The probability of a July 26 rate of 25 basis points to 5.25% to 5.50% barely moved
Despite the better-than-expected CPI report today, the probability of a July 26 rate of 25 basis points to 5.25% to 5.50% barely moved. The market is strongly expecting a hike in two weeks. Source: Jim Bianco
ECB Balance Sheet
ECB QT continues w/balance sheet shrank by another €12.8bn to €7,207bn, lowest since Mar2021. ECB's total assets now equal to 53% of Eurozone GDP vs Fed's 31%, SNB's 121%, and BOJ's 128%. Source: HolgerZ, Bloomberg
SNB Dials Down Interest-Rate Hiking With Quarter-Point Move
The Swiss National Bank delivered the smallest interest-rate hike since it began monetary tightening a year ago while signaling it may act again to tame inflation.
Policymakers led by President Thomas Jordan lifted the key rate by a quarter-point to 1.75%, matching forecasts by most economists surveyed by Bloomberg.
The step is aimed at “countering inflationary pressure, which has increased again,” Jordan said in Zurich. “It cannot be ruled out that additional rises in the SNB policy rate will be necessary to ensure price stability over the medium term.”
Source: Bloomberg
SNB won’t let slowing inflation stop a rate hike
Source: Bloomberg
China's central bank cuts the banks' 1-Y and 5-Y Loan Prime Rate #LPR by 10 bps for the first time since August
The People’s Bank of China cut two more key lending rates on Tuesday for the first time in 10 months to prop up growth in the world’s second largest economy. The Chinese central bank cut the one-year loan prime rate by 10 basis points from 3.65% to 3.55%, and trimmed the five-year loan prime rate by 10 basis points from 4.3% to 4.2% — for the first time since August. Source: CNBC
