The expectation of easier monetary policy in the United States has led investors away from the Greenback and has pushed the euro, pound, and yen to yearly highs. Speculators are now simultaneously bullish on all three currencies for the first time since early 2021.
Meanwhile, investors seem to have all but forgotten the volatility shock from three weeks ago. Global equity benchmarks are approaching their previous highs. Volatility indicators have almost completely retraced back to their level before August 5th and bond yields are trading higher than they were before the weak job report.
Cross-assets price in a low recession and high policy easing probability over the next six months. This goldilocks assumption of a soft landing accompanied by policy easing only seen during recessions is the largest risk to the consensus of rising equity markets and a lower US dollar for the second half of 2024.
Join macro analyst Boris Kovacevic as he breaks down this weeks global market news.
Disclaimer: Converge is Convera’s new podcast that discusses a range of financial services topics. We want to remind our listeners that the information shared on this podcast is for informational purposes only and should not be considered financial advice. Please note that the opinions expressed on Converge are solely the opinions of the host and the guests, not Convera’s.