The sharp rise in short-dated Australian government bonds forced the RBA to purchase AUD 1 billion of April 2024 bonds last week in order to defend its yield curve control target of 0.1%. However, yields spiked again on Wednesday…
In lieu of next week’s report, I will be presenting the quarterly Counterpoint webcast titled ‘Where Is The Groupthink Wrong? (Part 2)’. I do hope you can join. Highlights If a continued surge in the oil price…
Dear client, In addition to this week’s brief report, we presented at our annual BCA conference on the challenges to the US dollar’s reserve status. If you missed the session, please contact your account representative for a…
Our foreign exchange strategists have held the view that the DXY will fail to break above the 94-95 level and will ultimately move lower over a cyclical investment horizon. Last week the DXY hit a 13-month high of 94.5 but…
New data from the University of Cambridge shows the impact of China’s recent ban of cryptocurrencies on the structure of global Bitcoin mining. In 2019, China accounted for three quarters of global mining activity. As regulations…
According to BCA Research’s European Investment Strategy, conditions are falling in place for the countertrend decline in EUR/USD to end soon. The big fundamental forces point to a firmer euro on an 18- to 24-month basis…
Dear Client, There will be no weekly report next week. Instead, we will host our quarterly webcast on Tuesday, October 26 for the US and EMEA regions and Wednesday, October 27 for the Asia Pacific region. We will resume our regular…
According to BCA Research’s Foreign Exchange Strategy service, the pound could relapse versus other G10 currencies in the near term. However, it is likely to fare well over a cyclical horizon. Their 12-month target for GBP/USD…
Highlights UK GDP is on track to overtake pre-pandemic levels. This will strengthen the case for the BoE to tighten monetary policy. That said, markets are aggressively pricing in a hawkish BoE. This creates room for near-term…