06/02/2025
Summary:
The US dollar climbed to a new two-month high following a chaotic performance from President Biden in the first Presidential debate. Biden’s vulnerabilities were evident, as he frequently stumbled over his words and even lost his train of thought at one point. In contrast, Trump delivered a strong performance and reiterated his commitment to imposing trade tariffs, asserting that this would reduce the trade deficit without increasing inflation. Meanwhile, US and EU macroeconomic data largely met expectations, with all attention now focused on today’s Core PCE figures, the Federal Reserve’s preferred inflation measure.
Speeches:
Market Insight:
Given the recent period of exceptionally low volatility across major currencies, today’s US inflation data has taken on greater importance. We anticipate significant FX movements if the figures deviate from forecasts. Additionally, political developments could become a major market catalyst, with the first round of French election voting approaching on Sunday and the UK election scheduled for next Thursday.