EUR/USD
1.13988
0.113%
Gold
4036.89
0.208%
Oil
81.124
3.567%
USD/JPY
163.480
-0.232%
GBP/USD
1.33017
0.103%
GBP/JPY
217.461
-0.115%
Real-time News
The yield on Japans 30-year government bonds fell 6 basis points to 3.92%.On July 29th, Gordon Shannon, co-head of investment-grade at TwentyFour Asset Management, stated in a report that investors should expect the Federal Reserve to adopt a "tightening hold" approach at its meeting, while still maintaining a considerable probability of a rate hike. Although he anticipates a 25-50 basis point rate hike later this year, the moderate CPI inflation in June and weak employment growth suggest the committee can wait for more data.July 29th - Markets widely expect the Federal Reserve to keep the federal funds rate unchanged, but Paolo Zanghieri, senior economist at Generali Investments, stated in a report that the more important thing will be the message the Fed sends. He anticipates that policymakers will maintain or even strengthen a tightening tone, given persistent inflation, rising oil prices, and internal divisions within the Fed that open the door to further tightening later this year. This aligns with Generalis broader expectation that sticky inflation, despite some easing of overall inflation, will keep central banks cautious. Markets will focus less on the interest rate decision itself and more on any signals regarding the September meeting and the balance between inflation risks and economic growth.On July 29th, DHF Capital SA economist Bas Kooijman stated in a report that oil price movements have become a key driver of US Treasury yields and market expectations regarding the Federal Reserves interest rate path. The outlook is likely to change depending on the developments in the Middle East and oil prices. A further sustained decline in oil prices could exacerbate inflationary pressures and dampen expectations of monetary policy tightening, while a renewed escalation of tensions could reignite inflation concerns and push up US Treasury yields.On July 29th, Daniel Loughney, Head of Fixed Income at Mediolanum International Funds, stated in a report that the Federal Reserves current signals are somewhat ambiguous. The market interpreted Fed Chairman Warshs remarks at his first FOMC meeting as tightening, shifting its expectation from rate cuts to rate hikes. We believe the markets interpretation of the Feds intentions is flawed, and a rate hike is unreasonable. Mediolanum argues that Warshs stance at the last meeting was neither tightening nor dovish.
