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The Chinese yuan slide sharply against the US dollar on Friday, breaching the 7.2 level. The weakness comes after the PBOC loosened its hold on the currency by setting a weaker-than-anticipated daily fixing. The…
The Swiss National Bank’s 25 basis point rate cut on Thursday came as a dovish surprise to market participants anticipating it would hold the policy rate unchanged. The rate cut, which brought the policy rate down to 1.5% makes the SNB the first among its G10…
According to BCA Research’s Emerging Markets Strategy service, although certain Chinese industries and individual EM economies are growing briskly, overall EM growth will remain tepid, with risks skewed to the downside. The fiscal stimulus announced during…
The UK CPI report showed inflation eased by more than anticipated in February. Headline CPI inflation dropped from 4.0% y/y to 3.4% y/y – below consensus estimates of 3.5% y/y and the weakest increase since September 2021. Similarly, the slowdown in core…
There were no meaningful adjustments to the Fed’s communication on Wednesday. The post meeting statement was essentially unchanged with Chair Jay Powell noting that the risks to achieving the Fed’s goals are coming into better balance. Powell did…
According to BCA Research’s China Investment Strategy service, the adjustment in China’s real estate sector is not over. Odds are that the property market will contract for the fourth year in a row. The property market indicators continue to paint a grim…
Our takeaways from this afternoon’s FOMC meeting.
The Bank of Japan delivered a historic policy adjustment this week, ending both negative interest rates and Yield Curve Control. In this Insight, BCA’s global fixed income and currency strategists discuss the immediate implications of the move for Japanese bond yields and the yen, and the potential for additional tightening actions.
Various indicators of Eurozone wage growth have cooled off in recent months. Notably, the labor costs index eased sharply from a downwardly revised 5.2% y/y to 3.4% y/y in 2023Q4 – the slowest pace of increase since Q3 2022. Alternative measures such as…
The Aussie dollar was among the worst performing G10 currencies on Tuesday on the back of a shift in tone in the Reserve Bank of Australia’s post-meeting statement. Specifically, the RBA replaced the hawkish bias that “a further increase in interest rates…