Next week’s ECB meeting is unlikely to leave a lasting impact. The December meeting is the one to watch as chances of a rate cut are still higher than markets currently anticipate
It’s becoming increasingly clear that Trump’s dismissal of Lisa Cook is not going to have a big short-term FX impact. The implications may only play out in the longer run, as the current focus remains more on data. French politics also appears to be treated with plenty of caution by the currency market. We think EUR/USD can stabilise today
I strongly invite you to check these two pieces to spot how strong the reactions are after the dovish speech from Powell:
Forex Markets are going bonkers since Powell's dovish speech at the Jackson Hole conference.
The US Dollar is getting sold off aggressively as the Market interpreted dovish signs for a cut in the September, even in a relatively nuanced speech – Markets didn't need much!
Yesterday's CPI report fueled even more fire to the ongoing relentless rally in US Equities. Up a respective 46% and 34% from their Liberation Day lows, both the Nasdaq and S&P 500 keep beating expectations.
