28 ARTICLES
Technology stocks were hit hard on Thursday while U.S. Treasury yields fell sharply. Gold, silver and bitcoin all followed the downturn, while oil prices rose on Middle East unrest.
The International Monetary Fund believes the Bank of Japan is on the right track with gradual rate hikes, but asks the central bank to be ready to act faster if price growth takes off. The analysis points to a neutral rate of 1.1–2.2 percent by 2027.
The New York Fed survey shows American consumers now expect 3.9 percent price growth over the next year – the highest level since May 2023. At the same time, expected wage growth is falling, and the Fed minutes point to yet another rate hike before year-end.
Minneapolis Fed chief Neel Kashkari says inflation remains too high and has pencilled in one more rate hike this year, plus another in 2027. He believes the neutral rate may be higher than assumed.
Australia's central bank tightens again: The interest rate is raised by 25 basis points to 4.60 percent, driven by higher energy prices and persistent price pressure. RBA keeps the door open for yet another hike in November.
Weak demand at Treasury auctions and increasing probability of a Fed rate hike in October have pushed the 10-year US yield above 5.2 percent, the highest since June 2007.
The Chinese central bank set the USD/CNY reference rate at 6.7521 on Thursday – the strongest level for the yuan since February 2023 – while simultaneously injecting over 560 billion yuan into the money market.
The US added 162,000 jobs in August – far above expectations. Markets are now pricing in more than a 58 percent chance of a Fed rate hike in September.
Japan's ten-year yield has risen to three percent for the first time since 1996, a level that could send shockwaves through global financial markets and put pressure on risk assets worldwide.
A clear majority of economists expect the Bank of Japan to raise rates to 1.25 percent in September – but even that looks unlikely to shield the yen from continued pressure.
Goldman Sachs concludes that Japan has ample ammunition for further yen purchases, but that the timing depends on two key factors: weak U.S. data or a disappointment from the Bank of Japan in September.
Federal Reserve's Alberto Musalem sent a clear signal that the central bank is willing to go against market expectations if inflation risks demand it – and he believes financial conditions are far too loose.
Bank of America CEO Brian Moynihan expects the Federal Reserve to raise interest rates three times before year-end — and believes the AI investment wave can withstand the pressure.
For the first time since 1998, the US and Japan carried out a coordinated currency intervention to support the yen. Bitcoin fell more than 2 percent within hours.
Oil prices are falling sharply following signals of a possible diplomatic resolution with Iran, while Japanese yen interventions are creating turbulence in currency markets. Experts believe lower energy prices could relieve pressure on central banks.
The U.S. Federal Reserve kept rates at 3.50–3.75 percent as expected, but a new hawk at the helm and escalating tensions in the Strait of Hormuz are pushing risk appetite lower.
Kevin Warsh appeared before Congress with a clear message that inflation remains a problem – on the very same day a key report showed the exact opposite. Rate-hike expectations collapsed within hours.
The Japanese yen has fallen to its weakest level against the dollar in 40 years, and the US Treasury Department is now demanding that the Bank of Japan accelerate its monetary policy normalization.
Iran has fired a new wave of ballistic missiles and drones at Bahrain, Jordan, Kuwait, and Iraq. Oil and dollar prices react immediately with sharp gains.
Banque de France has withdrawn gold worth around 150 billion Norwegian kroner from American vaults. Experts warn this could be the beginning of a broader shift in the global financial system.
The ECB has selected 36 payment service providers to participate in a pilot programme for the digital euro from the second half of 2027. This comes at a time when dollar-denominated stablecoins control 99 percent of the global market.
US core inflation came in at 0.0 percent in June – far weaker than expected. The dollar is falling broadly, but technical support levels are limiting the decline.
The Japanese yen is hovering near 161 per dollar after touching a 40-year low, as rising bankruptcies, record-high government bond yields, and internal political divisions pile pressure on Japanese authorities.
Just five weeks after a massive Japanese currency intervention, the dollar is back at 160 yen. RBC Capital Markets is now recommending buying dollar dips – and believes market forces will continue to prevail.
Stronger-than-expected U.S. employment figures have prompted traders to price in a new rate hike from the Fed before the end of 2026 — sending risk appetite lower.
A strategist at SMBC Nikko Securities warns that Japan is one step away from a historic collapse in the yen, driven by a sustained oil shock and fiscal loosening. Finance Minister Katayama pledges action if necessary.
Reserve Bank of New Zealand Governor Anna Breman confirms that the official cash rate will be raised faster and more significantly than previously signaled, driven by the Middle East conflict and persistent inflation.
The US confirms Apache helicopters sank six Iranian boats in the Strait of Hormuz. Insurance premiums for transit have skyrocketed from 0.25% to 5% of vessel value — an increase of over 1,000% — while 150 vessels anchor or reroute. The RISK_OFF regime is in full effect.
