In the world of financial markets, the recent burst of volatility has taken many traders by surprise. There is an inherent irony in the fact that trades which are only feasible and highly profitable in a low volatility environment are suddenly exposed when volatility spikes. FX “carry trades” and the “basis” trade in U.S. Treasuries
The USDJPY pair witnessed a significant surge of more than 2% following the announcement made by the Bank of Japan’s deputy governor. The statement indicated a decrease in the likelihood of immediate policy tightening due to market instability concerns. This shift in sentiment attracted buyers back to the Japanese markets, leading to a 4% rebound
The Bank of Japan’s deputy governor, Shinichi Uchida, emphasized the importance of stability in financial markets when considering interest rate hikes during a speech in Hakodate, Japan. Uchida’s remarks contrasted with the more hawkish comments made by Governor Kazuo Ueda the previous week when the BOJ unexpectedly raised interest rates. The recent sharp volatility in
The NZD/USD pair experienced a significant surge in response to the release of upbeat employment details. The employment report indicated an increase in the number of employed individuals by 0.4% in the second quarter, surpassing market expectations. This positive data not only demonstrated a strengthening labor market but also reduced the likelihood of a potential
The GBP/JPY cross saw a significant rally of over 400 pips during the Asian session following dovish remarks from Bank of Japan (BoJ) Deputy Governor Shinichi Uchida. This surge pushed the pair to an intraday high around the 187.25 region, marking a 1.80% gain for the day. However, despite the strong upward movement, spot prices
After analyzing the recent weaker-than-expected economic data, Claudia Sahm, chief economist at New Century Advisors, has stated that an emergency rate cut by the U.S. Federal Reserve may not be necessary at this point. She argued that while there is no need for an emergency cut, there is a solid case for a 50-basis-point reduction
In times of market turbulence and volatility, investors often seek refuge in bonds. With the recent fluctuations in the market, it is crucial to consider the potential benefits of incorporating bonds into one’s investment portfolio. Bonds offer stability, income, and diversification, which can help investors navigate uncertain market conditions. According to Joanna Gallegos, the co-founder
The USD experienced a bit of a rollercoaster on Monday but managed to recover on Tuesday. The market sentiment seems to have shifted, allowing the US Dollar to gain ground and hover near the 103.00 mark. This recovery can be attributed to an improvement in market sentiment, as well as the absence of any significant
The JP 225 stock index has experienced a significant drop to a 10-month low of 30,361, marking a 21% decline at the start of the month. This plunge has been attributed to recession fears in the US and a bullish cycle of the yen, creating a pessimistic outlook for investors. The index has seen its
Recent data released by the Toronto Regional Real Estate Board (TRREB) indicates that the Greater Toronto area experienced a decline in home sales in July. This decrease comes after a surprising rise in June, breaking a four-month streak of declining home deals. Seasonally adjusted sales dropped by 1.7% in July, following a 3.2% increase in
The recent minutes from Brazil’s central bank policy meeting on July 30-31 revealed a strong willingness to take action in order to bring inflation down to its target. The central bank emphasized the need for increased vigilance as inflation expectations continue to rise, potentially leading to a de-anchoring of expectations. The policymakers expressed their readiness
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