Author: FX

Cautious approach to easing monetary policy is appropriateLooking for incoming data to provide evidence that risk of persistent inflation is diminishingWage growth has fallen but remains above what our suite of models can explainRisks to activity are to the upside, which could suggest long run neutral rate is higherThis just reaffirms their stance from last week. But as things stand, traders are expecting them to cut rates again in November following the pause this month. The odds priced in by the OIS market are now at ~86% for a 25 bps move then. This article was written by Justin Low…

USD/CAD loses ground due to rising dovish sentiment surrounding the Fed’s policy outlook. Fed’s Bowman urged caution regarding central bank rate cuts, citing inflation indicators above the 2% target. The commodity-linked CAD may struggle due to lower crude Oil prices amid investors re-assessing the effectiveness of China’s stimulus plans. USD/CAD hovers around 1.3430 during the early European hours on Wednesday. The pair received downward pressure following the bumper interest rate cut of 50 basis points by the US Federal Reserve (Fed) last week. The US Dollar (USD) may depreciate further due to expectations for further rate cuts by the Fed…

EUR/CHF just broke a weeks-long uptrend! Does this mean the pair is ready for a reversal? The upcoming SNB policy decision might tip the scales in favor of the bears! This Article Is For Premium Members Only Become a Premium member for full website access, plus get: Ad-free experience Daily actionable short-term strategies High-impact economic event trading guides Access to exclusive MarketMilk™ sections Plus More! Source link

OFS Credit Company (NASDAQ:OCCI) priced an underwritten public offering of 1.04M shares of 7.875% Series F term preferred stock due 2029 at a public offering price of $25.00 per share. Gross proceeds expected to be $26M. Underwriters have a 30-day option Source link

SHANGHAI (Reuters) -China’s central bank lowered the cost of its medium-term loans to banks on Wednesday in a move consistent with broad policy easing measures announced a day earlier to shore up a flailing economy. The People’s Bank of China (PBOC) said it cut the rate on 300 billion yuan ($42.66 billion) worth of one-year medium-term lending facility (MLF) loans to some financial institutions to 2.00% from 2.30%. The bid rates in Wednesday’s operation ranged from 1.90% to 2.30%, and the total balance of MLF loans now stands at 6.878 trillion yuan, the central bank said in an online statement.…

This franc pair has been cruising above a rising trend line these days, but will the upcoming SNB announcement shake things up? Expectations are for a 0.25% rate cut from the Swiss central bank, although there could be a case for a larger easing move and downgraded inflation estimates. To top it off, we might get some jawboning from SNB head Thomas, too! Here’s what I’m watching on GBP/CHF. This Article Is For Premium Members Only Become a Premium member for full website access, plus get: Ad-free experience Daily actionable short-term strategies High-impact economic event trading guides…

The Australian Bureau of Statistics (ABS) showed headline inflation coming in at 2.7% from a year ago in August, slower than July’s 3.5% increase but in line with latest market estimates. Excluding volatile items and holiday travel, consumer prices rose by 3.0% in August, slower than the 3.7% uptick in July. Meanwhile, Reserve Bank of Australia’s (RBA) trimmed mean inflation – an alternative measure of underlying inflation – came in at 3.4%, lower than the 3.8% annual increase in July. Link to ABS August CPI Report Details revealed that Housing (+2.6%), Food and non-alcoholic beverages (+3.4%), and Alcohol and tobacco…

Central bankers were under the spotlight yesterday, and a lack of top-tier data releases made it easier to reprice monetary policy biases across the major assets. Which headlines influenced the major assets’ price action? We have the deets! Headlines: China announced a slew of stimulus measures that include cutting its reserve ratio requirement by 50bps and its 7-day reverse repo rate from 1.7% to 1.5% As expected, RBA kept its rates at 4.35% and repeated that inflation “remains too high” Major central bank members shared their two cents: ECB President Lagarde said high inflation is “not quite” beaten, said she…

The New York Federal Reserve branch’s Roberto Perli is manager of the Fed’s System Open Market Account SOMA). He spoke in a speech on Tuesday, saying that markets are not viewing the FOMC 50bp rate cut as an indication of stress in the economy. Reuters with the info:market intelligence collected by the New York Fed indicated investors “were likely to interpret a 50-basis-point cut exactly for what it was – a recalibration of the FOMC (Federal Open Market Committee) policy toward a more neutral stance that will help maintain the strength of the economy and the labor market while continuing…

USD/JPY flatlines around 143.20 in Wednesday’s early Asian session.  Investors raise their bets on a jumbo rate cut from the US Fed in November. The BoJ Governor signals no rush to raise rates further.  The USD/JPY pair trades flat near 143.20 despite the weaker US Dollar (USD) during the early Asian session on Wednesday. However, the rising expectation of a jumbo rate cut by the US Federal Reserve (Fed) in November might continue to weigh on the pair. Fed Governor Michelle Bowman said on Tuesday that key measures of inflation remain “uncomfortably above” the 2% target, warranting caution as the Fed…