Developed Countries
We look at the implications a various European central bank meetings this week, for currency strategy.
Japanese exports in JPY increased from 8.3% y/y to 13.5% in May, surpassing expectations of 12.7%. 23.9% and 17.8% y/y growth in exports to the US and China, respectively, led the overall surge. Trade data from Asian export-oriented economies are generally…
In a widely expected move, the Bank of England (BoE) kept its policy rate unchanged at 5.25% in June. Although MPC members voted seven-to-two in favor of not cutting rates, a tweak in communication noting that the decision was “finely balanced”, hinted at the…
The Swiss National Bank (SNB) was the first major central bank to embark on a dovish pivot back in March. It lowered borrowing costs Thursday for a second consecutive meeting, from 1.5% to 1.25%, despite expectations that it would hold the policy rate…
In its latest Special Report, BCA Research’s US Bond Strategy service considers the relative merits of four different fixed income investments in the current economic environment: 2-year Treasuries, 10-year Treasuries, Baa-rated corporate bonds and current…
We consider the relative merits of four different fixed income investments in the current economic environment: 2-year Treasuries, 10-year Treasuries, Baa-rated corporate bonds and current coupon Agency MBS.
On the surface, UK inflation appears to be on the right track. The May CPI release came in broadly within expectations. Headline inflation eased from 2.3%y/y to 2.0%y/y – directly on the BoE’s target for the first time since July 2021. Core CPI (excluding…
The heart of the US manufacturing sector is still pulsing. Industrial production surpassed expectations in May, growing by 0.9% m/m after having stagnated in April. Notably, the pro-cyclical manufacturing production index rebounded from April’s surprise…
The ECB delivered its first rate cut in June, moderating the degree of restriction rather than pivoting outright to easy monetary policy settings. Indeed, the rate cut was accompanied by an upward revision of inflation and growth forecasts. Since then,…
Nvidia is now the largest company in the world. Its market capitalization has not only surpassed Microsoft’s, it also tops the entire stock market capitalizations of the UK and France. While Nvidia founders and owners are likely to welcome this news, it acts…