Overnight, as tensions between the U.S. and Iran escalated again, oil prices rose, the dollar strengthened, and U.S. Treasury yields increased accordingly. The yen fell by 0.5% against the dollar at one point to 163.24. After Finance Minister Katayama Mayuko reiterated that authorities are ready to take “bold measures” whenever necessary, the yen stabilized around […]

Federal Reserve Chair Kevin Warsh reiterated this week that the Fed is closely monitoring inflation. The test of fulfilling this commitment may come soon. Federal Reserve officials are expected to keep interest rates unchanged at their meeting in Washington on July 28–29. However, the “internal struggle” championed by Wash could reach a climax at the […]

The European Central Bank may pause its second rate hike next week but will keep the option open for a raise in September. After energy prices surged, eurozone officials raised borrowing costs in June. They initially expressed confidence that peace talks between Washington and Tehran would limit the impact of the conflict on eurozone consumer […]

Jeff Schmid, president of the Federal Reserve Bank of Kansas City, said inflation is his biggest concern, given that it could accelerate further in the coming months. Although June’s inflation data came in better than expected, Schmid warned it is too early to conclude that this marks the beginning of a trend. “My main concern […]

New Zealand’s chief economist, Paul Conway, said Tuesday that the pace of inflation slowdown may not be as fast as the Reserve Bank has predicted, suggesting further interest rate hikes could be possible in the future. The Reserve Bank of New Zealand last week lowered its third-quarter inflation forecast from 4.3% to 3.3%, reflecting a […]

Bond traders increased bets on a July rate hike ahead of the release of U.S. inflation data and the Federal Reserve chair’s speech, as those developments could further reinforce the need for action. The expectation of rising interest rates is evident in both interest rate options and U.S. Treasury markets. The implied probability of a […]

Federal Reserve Chair Kevin Warsh is about to testify before Congress for the first time in his role as Fed chair, where he will join lawmakers in analyzing the latest U.S. inflation data during a two-day hearing. On Tuesday at 10 a.m., the House Financial Services Committee will hold a hearing in Washington, following the […]

According to Goldman Sachs, arbitrage trading—one of the most widely used strategies in the foreign exchange market, which has a daily trading volume of $9.5 trillion—is facing the most striking market conditions in over two decades. Strategy analyst Stuart Jenkins wrote in a report that the importance of carry trades in the G10 foreign exchange […]

OPEC+ major members agreed to slightly increase their collective oil production quotas next month, which could lead to more oil supply entering the market if the U.S.-Iran peace deal holds. OPEC announced on its website that seven oil-producing countries, led by Saudi Arabia and Russia, agreed on Sunday during a video conference to increase their […]

OPEC+ major members agreed to slightly raise their collective oil production quotas next month, which could lead to more oil supply entering the market if the U.S.-Iran peace deal holds. OPEC announced on its website that seven oil-producing countries, led by Saudi Arabia and Russia, agreed on Sunday during a video conference to increase their […]