Financial Market Newsletter

The USD (+0,85%) and U.S Treasury yields both moved higher after the FED Chair signaled late last week that the Federal Reserve may not yet have completed its fight against inflation.

The key inflation gauge in Japan accelerated for a third consecutive month, strengthening the case for the Bank of Japan (BOJ) to raise interest rates again at its upcoming September meeting.

The U.S Personal Consumption Expenditures (PCE) price index remained above the FED’s target, rising by 0,2% in July after declining by 0,1% in June.

Global trade flows rose sharply in June, supported by the boom in artificial intelligence-related investment despite disruptions caused by the Iran war.

The U.S is expected to impose an additional 7,5% tariff on Chinese goods, citing concerns over excess production capacity ahead of a planned summit between the two countries’ top leaders next month.

U.S-Canada trade negotiations ended late Friday without an agreement after several weeks of tense discussions.

According to surveys released on Friday, business activity in the U.S, Europe, and several parts of Asia picked up again despite a range of challenges related to the war in the Middle East.

Japan’s consumer price inflation accelerated for the second consecutive month, giving the Bank of Japan further reason to raise interest rates as early as September, with the market currently pricing in around an 80% probability.

The USD weakened sharply by 0,88% against major currencies on Wednesday night after the U.S Treasury Department announced plans to double its buyback operations to support liquidity in long-dated Treasuries.