In this Strategy Outlook, we present the major investment themes and views we see playing out for the rest of 2023 and beyond.
The European Commission’s business and consumer surveys reveal that the recent bank stress did not weigh heavily on sentiment. Economic, consumer, industrial and services confidence were all broadly unchanged in March.…
It is a big mistake to think that rate cuts or lower bond yields will ease credit conditions. Quite the contrary. After an aggressive tightening of monetary policy, the first rate cuts always coincide with much tighter credit…
The recent uncertainty regarding the health of the banking systems in the US and Europe is not having any material impact on overall financial conditions or economic sentiment. The aggressive rate cut expectations, especially in the…
The German IFO delivered a positive surprise on Monday. The Business Climate Index increased from 91.1 to a 13-month high of 93.3, beating consensus estimates it would remain broadly unchanged. An unanticipated 2.8-point rise in…
Friday’s flash PMI releases suggest that price pressures continue to moderate in both the US and the Euro Area. Both regions recorded the greatest improvement in supplier delivery times since the beginning of their…
CAD/NOK tends to trade in perfect harmony with the DXY, but a divergence has emerged of late. For one, the selloff in the Norwegian krone versus the Canadian dollar has not been associated with a similar rise in the DXY. The…
As expected, the Bank of England, Swiss National Bank, and Norges Bank all delivered rate hikes at their Thursday meetings, lifting interest rates by 25bps, 50bps, and 25bps respectively. In the case of the BoE, the Financial…
This week’s report looks at the banking crisis within the context of shrinking dollar liquidity and implication for FX markets.