Markets Weekly Outlook – Inflation Fears Rise with Tariffs Ahead of US CPI Release

AUDUSD rose to the highest levels in almost one month on Monday, in extension of almost 0.9% daily advance on Friday and 1.5% gains last week The pair enters the third consecutive week of strong gains, with the latest acceleration being boosted by revived risk appetite and hopes of September Fed rate cut (with renewed […]

Today, the ECB decided to leave policy rates unchanged as unanimously expected. A rate cut looks set to come in June, subject to further confidence on the three criteria that have guided ECB policy making through the past year. The next to no new policy signals left markets largely unchanged. Limited new signals The ECB […]

Short-term positive animal spirits have resurfaced in China and Hong Kong stock markets stoked by additional liquidity injection from PBoC and the creation of a “stabilization fund”. Long-term prospects are still dim as a liquidity trap scenario cannot be ruled out in the real economy due to weak consumer and business sentiment. Watch the next […]