Last week witnessed three notable developments in the financial landscape. The greenback briefly dipped below the 200-day moving average for the first time in seven months. Despite softening inflation, a substantial contraction in Japan’s Q3 GDP, and feeble consumption in the early stages of Q4, the BOJ is under little pressure to take immediate action. A resounding 94% of economists polled by Bloomberg anticipate no policy changes until the next year, with about half of them expecting a move in …
Etiket: United States of America
As the year draws to a close, it seems that the global economy is transitioning into a new stage. Despite assurances from North American and European central bankers about their readiness to address potential threats to price stability, the markets express skepticism. The pricing signals in the derivatives markets suggest a prevailing belief that central banks have likely concluded the monetary tightening cycle initiated in the post-Covid era. Central bankers are resisting any premature relaxation of financial conditions. The significant …
Last week, the U.S. dollar experienced a decline against all G10 currencies. The dollar-bloc currencies, along with sterling and the Scandis, took the lead in this movement. showing appreciation ranging from approximately 0.55% to 1.40% against U.S. dollar. Prior to the weekend, both the dollar bloc and sterling achieved new monthly highs. While the dollar spent a significant portion of the week consolidating against other currencies, following the extension of its recent losses at the week’s outset, our analysis of …
Industrial policy has risen to prominence on the national agenda in the U.S. and other advanced industrial economies. This marks a significant departure from recent economic trends and has reignited a longstanding debate in which we were both actively engaged over three decades ago. In the U.S., the CHIPS and Science Act, the Inflation Reduction Act (IRA), and the Bipartisan Infrastructure Act have established noteworthy national security and climate objectives. Each of these acts utilizes subsidies, tax credits, loan guarantees, …
Recent patterns and advancements, ranging from conflicts in Gaza and Ukraine to the competition between the United States and China, could signal a significant global geopolitical shift. The possibility of a prolonged confrontation between the Western nations and their adversaries, notably China, Russia and Islamic World, is becoming increasingly prominent. The ongoing crises, conflicts, and wars underscore the significant transformation of the geopolitical landscape in recent years, with a resurgence of great-power rivalries taking center stage in international relations. The …