UK Market Plunge Sparks Talk of Emergency BOE Rate Hike

“The market is giving very strong signals that it is no longer willing to fund the UK’s external deficit position at the current configuration of UK real yields and exchange rate,” Saravelos wrote in a note, adding the view is his own, rather then the view of Deutsche Bank economists. “The policy response required to … Read more

It’s Every Nation for Itself as Dollar Batters Global Currencies

For starters, China is now the biggest trading partner of the US, Japan and countries across Europe. An agreement without Beijing’s participation would likely be an ineffective deal and while the yuan is under pressure versus the dollar and the government there is leaning against weakness with its fixings, it’s far from distressed levels that … Read more

Fed Seen Raising to 4% in 2022 And Signaling Higher for Longer

“We expect the Fed to continue hiking until realized inflation prints come down, with the August CPI release adding substantial urgency to the Fed’s task,” said Robert Dent, senior US economist at Nomura Securities International Inc.  “The longer inflation stays elevated, the more concerns of a wage price spiral and/or inflation expectations unanchoring rise.”

Fed’s Waller Backs ‘Significant’ September Hike, Joining Bullard

“Inflation is far too high, and it is too soon to say whether inflation is moving meaningfully and persistently downward,” Waller said in the text of his remarks to the Institute for Advanced Studies in Vienna, Austria. “I support a significant increase at our next meeting on September 20 and 21 to get the policy … Read more