06/12/2024
Written by: Ian Morley
Summary:
The US dollar weakened and bond yields fell yesterday after the latest US inflation data indicated the slowest price increases since 2021.
Swap markets responded swiftly, now anticipating 2-3 rate cuts this year, with a September move almost certain.
The latest data confirmed the recent slowdown in price increases, and notably, the persistent rise in shelter costs is finally showing signs of easing.
The British pound continued its upward trend, reaching its highest level since July 2023, following stronger-than-expected GDP data, with growth doubling the forecasted rate.
Additionally, the US dollar fell against the Japanese Yen after reaching a 38-year high due to rumours of Central Bank intervention.
Speeches:
Market Insight:
Political developments remain in the spotlight as the recent French elections resulted in a hung Parliament. Meanwhile, in the US, calls for President Biden to step down have grown louder following another gaffe-laden speech last night, where he mistakenly introduced Ukraine’s leader Volodymyr Zelenskyy as Vladimir Putin. Adding to the confusion, he then erroneously referred to Vice President Kamala Harris as Vice President Trump. It raises questions about how long the Democratic Party will keep him as their Presidential candidate.