The swissfranc rises to strongest against the dollar since 2015
The swissfranc rises to strongest against the dollar since 2015 after weaker than expected US inflation data. 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
Yen pressure mounts with Trade-Weighted gauge at two-decade low
Source: Bloomberg
Yen declines as BOJ sticks with super easy policy unlike peers
The Bank of Japan continued to defy global central bank trends by sticking with stimulus as it waits for signs of more sustainable inflation while its peers signal the need to raise interest rates further to rein in prices.
Governor Kazuo Ueda and his fellow board members left their negative interest rate and yield curve control program unchanged at the end of a two-day gathering and maintained their view that inflation will slow over the coming months, according to a statement Friday.
The yen declined after the decision, falling to around 141.40 per dollar. It had hit a seven-month low of 141.50 on Thursday.
Source: Bloomberg
Fed left interest rates unchanged but suggest further hikes
Federal Reserve officials paused their series of interest-rate hikes but projected borrowing costs will go higher than previously expected.
Powell, speaking to reporters in a press conference Wednesday, faced the challenging task of explaining two possibly contradictory policies: deciding to leave rates unchanged following 10 straight hikes while also indicating that at least two more increases might be necessary this year, possibly as soon as July.
Source: Bloomberg
Federal Reserve to skip a rate hike
A gauge of dollar strength held near a one-month low on speculation the Federal Reserve will skip an interest-rate hike at a policy meeting ending Wednesday.
While US CPI data has cemented bets on a Fed pause, it also suggests that we might see more tightening later, which will ultimately slow the US economy.
Source: Bloomberg
Turkish Lira disastrous performance in one chart
Turkish Lira (blue) is down -55% in the last 10 years in real terms. That's worse than Sri Lanka (pink), which is down -27%, and worse than Pakistan (orange), which is down -8%. Chart also shows Brazil undervaluation. These are all commodity importers. Brazil doesn't belong here. Source: Robin Brooks
Attractiveness of EUR IG vs. US IG at decade high! 📈💼
🌍 Absolute yields in the global credit market present compelling long-term entry points, especially for high-quality European corporate bonds. Compared to the US market, the attractiveness of EUR Investment Grade (IG) credit is soaring. While concerns about a deeper recession in Europe have caused some turbulence, they have also opened up intriguing investment opportunities. Moreover, the recent Credit Suisse incident has further contributed to the dynamic landscape. 📊🔍 Is it time to seize the potential yield offered by EUR IG bonds? 💡💰 Source : Bloomberg
