Markets are cautious ahead of US inflation data later today. Estimates are forecasting a drop to 2.6% year-on-year, down from 2.9% on the last print. With only one week to go before the next FOMC meeting, market participants have their fingers crossed that the publication will not produce any nasty surprises and the same goes for tomorrow’s PPI figures. FedWatch is currently pricing in a 25 basis point cut at a 65% likelihood.
On the topic of rate cuts, tomorrow the European Central Bank is widely expected to lower its deposit facility rate another 25 basis points. This would be the second such cut, lowering rates on the Euro down to 4% from highs of 4.5% earlier in the year. The Bank of England, Swiss National Bank and Swedish Riksbank have all lowered rates on their respective currencies this year, with the Federal Reserve the only major bank so far not following suit.
The Dollar regained some ground early in the week but looked fragile this morning in Asia - a weakness that the Yen was all too happy to capitalise on, gaining over 1% on the greenback at one point. Gold continued to familiarise itself with its current tight trading range around $2,510 an ounce. Yet again, the bulk of the drama was to be found in oil markets. Demand forecasts continue to paint a bleak picture and crude prices have reacted accordingly, tumbling another 3% yesterday alone. Brent Crude finally lost $70 a barrel and WTI touched $65 during Tuesday’s session. Both are now at yearly lows.
Эрсдлийн дохио : Худалдааны дериватив ба хөшүүрэг бүтээгдэхүүн нь өндөр түвшний эрсдэлтэй байдаг.
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