monetary policy

Rising yields ahead of the FOMC meeting has seen the BOJ announce bond purchases, and implied volatility has risen notably for the next 24-hours.

The SNB (Swiss National Bank) are expected to hike interest rates tomorrow, which would send their rate above zero for the first time since 2011.

Major central banks around the world, except for the BOJ, are in tightening mode on the back of increasing inflation.

A fixed exchange rate describes when a currency’s value is pegged to a stronger, more influential currency. By contrast, a floating exchange rate allows a currency value to fluctuate with supply and demand. Both systems have pros and cons depending on a country’s economy.

The ongoing global inflationary pressure stems from two primary causes: Economic stimulus and supply chain disruptions - how will they evolve in 2022?

Both the current supply chain disruptions and the highly-accommodative economic policies are poised to ease, though perhaps not until closer to the middle of 2022...

Post-Fed, the Doves are on parade, treasury yields have fallen and bets for a cut in 2019 have increased. Certainly not a bad day in the office if you’re bearish USD.

Despite a powerful winter storm forcing the Federal Reserve’s Washington DC offices to close, the central bank was still able to release the minutes from its late January meeting.

With seemingly every member of the Federal Reserve emphasizing that the central bank would be “patient” following its December interest rate hike, it came as no surprise that the Fed left interest rates unchanged today. And, despite the speculation that Chairman Powell and Company could revisit their balance sheet rundown strategy, the central bank was quiet on that front as well.

For more than a week, the US dollar has risen sharply as US government bond yields have surged – with the benchmark 10-year Treasury yield briefly topping 3% – while geopolitical risk perceptions have tentatively waned.

The past week has seen a sharp rise in US Treasury yields, which has helped to fuel a US dollar rebound as well as place renewed pressure on recently rallying equity markets.