Topic: FX Weekly Report

Equities surge as Trump takes the lead, with the S&P 500 climbing for ten of the past eleven weeks. Strong economic data and Trump’s momentum boost markets.

Investors are pushing markets higher, betting on a Fed rate cut for a soft US economic landing, Yet, uncertainty looms due to upcoming data, election risks, and central bank moves, keeping the dollar and yields strong.

Global macro forces are creating uncertainty in financial markets due to geopolitical tensions, Chinese stimulus, rising commodity prices, a stronger US dollar, and shifting interest rate expectations. Inflation risks are heightened by supply chain disruptions and conflicts.

A week after the Fed encouraged markets, China’s policy easing has fueled further gains. US and European equities hit record highs, while Chinese stocks saw their biggest rally since 2008. Investors now await crucial US labor data to gauge the next Fed move.

Global equity markets approach record highs as investors move from the US dollar to riskier assets. The Fed’s 50 basis point rate cut, while Japan and the UK take diverging policy paths.

Investors are eyeing a possible 50 basis point rate cut by the Fed, despite mixed inflation data. The US dollar has weakened amid dovish expectations, while global equities recover and bond yields fall.