As the Bank of Canada considers cutting interest rates for the second time in the current cycle, it is essential to analyze the potential implications of such a decision. Commerzbank FX strategist Michael Pfister highlights that the seasonally adjusted monthly rates of change, aligned with the inflation target, support the view of a rate cut.
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The NZD/USD pair has weakened around 0.5945 in Wednesday’s early Asian session, marking a 0.25% decline. One of the factors contributing to this decline is the rising expectation of rate cuts by the Reserve Bank of New Zealand (RBNZ). This expectation has been fueled by the softer Consumer Price Index (CPI) inflation for New Zealand
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UBS analysts have reiterated their confidence in a soft landing for the US economy, attributing it to the downward trend in inflation and the Federal Reserve’s potential rate cuts. They emphasize that moderating consumer spending is a crucial factor in curbing inflation, despite some recent positive economic data. The Institute for Supply Management’s purchasing managers
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In recent weeks, the dollar index has experienced some fluctuations, with short-term profit-taking by sellers before potentially entering a new downward trend. This pressure on the US dollar has been attributed to indications from the Fed regarding progress in reducing inflation. The market response to the Fed’s signals has been significant, with a substantial increase
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The SMEI rebounded to 50.4 in July, marking an improvement from the previous month. This recovery was mainly attributed to better expectations and improved credit conditions. However, the performance sub-index remained in contractionary territory for the second consecutive month, indicating some challenges in certain sectors. One of the positive factors contributing to the rebound was
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