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July 26, 2024 1:03 PM UTC
June’s personal income and spending report is largely old news, with Q2 totals seen in the GDP detail. In Q2 income surprised on the downside but spending and PCE prices surprised on the upside. For prices and spending the Q2 surprise came more in back month revisions than June data. For income th
July 26, 2024 8:57 AM UTC
FX market dominated by fluctuating risk sentiment
Much of the JPY gain reflects a big overshoot since early May, but JPY remains undervalued
Risk positive currencies may now be oversold, notably NOK
More neutral market Friday after Tokyo CPI comes in in line with consensus
July 26, 2024 4:31 AM UTC
FX market dominated by fluctuating risk sentiment
Much of the JPY gain reflects a big overshoot since early May, but JPY remains undervalued
Risk positive currencies may now be oversold, notably NOK
Tokyo CPI may determine risk tone on Friday
July 25, 2024 2:21 PM UTC
Ahead of the GDP report, we forecast a 0.1% increase in the June core PCE price index, with a 0.3% rise in personal income and a 0.2% rise in personal spending. If there are no revisions to April or May, we would see a core PCE price index rounded up to 0.3%, with personal income unchanged and spend
July 24, 2024 9:15 AM UTC
2yr Gilt yields will likely start declining further after the 1 BOE rate cut (we expect Aug 1), both as BOE communications guide to further cuts in the medium-term and as incoming wage and service inflation provides more comfort to reduce the scale of restrictive policy. We see 2yr Gilt yields at
July 22, 2024 8:10 AM UTC
President Joe Biden dropping out will create more uncertainty about the U.S. presidential race, but also crucially mean that the House of representative race is a close call. This could stall some Trump trades, though we still see a swing to a positive 10-2yr U.S. Treasury yield curve – given Fe
July 18, 2024 9:10 AM UTC
If Trump is elected president we still feel that the top priorities for implementation will likely be reducing immigration and making permanent tax cuts that are due to lapse in 2025. Trump would likely jawbone on all issues, but actual policy changes are more important for persistent moves in mar