The Turkish lira collapsed to an all-time low on Thursday following news that President Recent Tayyip Erdogan sacked two central bank deputy governors. One of the officials dismissed – Ugur Namik Kucuk – was the only member of…
Highlights The surge in energy prices going into the Northern Hemisphere winter – particularly coal and natgas prices in China and Europe – will push inflation and inflation expectations higher into the end of 1Q22 (Chart of…
Highlights As US inflation proves to be not-so-transitory, US interest rate expectations will rise. Slowing Chinese domestic demand and rising US interest rate expectations will support the US dollar. The net impact from China’…
As expected, the Bank of Korea kept policy unchanged at its Tuesday meeting, maintaining the 7-Day Repo Rate at 0.75% following August’s 25 basis point hike. However, Governor Lee Ju-yeol signaled that a rate hike is likely in…
The Canadian economy is reaping the rewards of the country’s swift vaccination campaign. Employment rose by 157 thousand and reached its February 2020 pre-pandemic level in September. Importantly, the increase reflects a nearly…
Highlights The DXY is sitting comfortably within our 94-95 range. A punch above this level will seriously challenge our bearish thesis. The biggest risk to our view is the outlook for global growth, which we believe will remain firm…
Highlights Gold prices will continue to be challenged by conflicting information flows regarding US monetary policy; higher inflationary impulses from commodity prices and supply-chain bottlenecks; global economic policy uncertainty,…
As expected, the Reserve Bank of Australia kept the cash rate target unchanged at 0.1% and maintained the pace of government security purchases at AUD 4 billion/week until at least mid-February 2022. Governor Philip Lowe’s…
Highlights European small-cap equities have structurally outperformed large-cap stocks. This outperformance echoes the desirable sectoral biases of small-cap stocks. It also reflects the inability of European large-cap stocks to…