GBP rises to 2-week high

On Monday, the British pound rose to $1.17, the highest level in two weeks. Following the passing of Queen Elizabeth, the Bank of England decided to postpone this week’s interest rate decision to September 22. According to the most recent figures, the UK’s GDP increased by 0.2%, somewhat less than the 0.4% predicted.

More market movers from category

EUR/USD reclaims parity

Amid a massive bounce of stocks and commodities, Eurodollar reached parity for the first time in two weeks. The Euro gained 5% against the US dollar in this period.

Brazilian real gains 4% in one day 🔥

The Brazilian real increased by 4% versus the dollar, trading at about $5.2. BRL strenghtens as investors cheered an unexpectedly close outcome in the first round of the presidential elections. After no candidate receives a majority of more than 50% of the vote, the contest will proceed to a runoff scheduled for October 30.

GBP rises after last week’s turmoil

On the first trading day of Q4, the British pound climbed up near $1.12, returning to levels not seen in nearly two weeks. GBP rose right after the finance minister Kwarteng said he would not cut the top 45% income tax rate for the largest earners.

GBP remains volatile

The Bank of England announced that it would start making temporary purchases of long-term UK government bonds on September 28 in order to restore orderly market conditions. The British pound remained volatile, first rising to above $1.08 before dropping to $1.05.

Indian Rupee suffers losses

The Indian rupee hit a record low of 81.7 and is on track with the retreat of riskier currencies. This is due to recession fears and expectations of a hawkish Federal Reserve policy. Pressure on the rupee is also contributed to an increase in capital outflows from the country.

Serbian Dinar weakens

As a result of the Fed’s aggressive rate hikes, Serbian Dinar hits an all-time low against the US Dollar. USD/RSD rose 0.62% to 121.6800 from 120.9300 in the previous trading session.

More market movers

EUR/USD reclaims parity

Amid a massive bounce of stocks and commodities, Eurodollar reached parity for the first time in two weeks. The Euro gained 5% against the US dollar in this period.

US stocks surge sharply 🔥

Right after the American stock market opened, S&P 500 and Nasdaq rose 2.7% and 3%. This growth may be explained by expectations that weaker-than-expected US economic statistics will soften the Federal Reserve’s extreme hawkish tone.

Newcastle coal drops sharply 📉

After Newcastle coal grew above the $420 level from March to $450 in September, it fell by 8% in one day below the $400 per tonne mark. Coal is falling as China pledged to raise coal production capacity by 300 million tonnes. This is about the equivalent of China’s yearly imports.

Bovespa rose by 5.5% in one day 🚀

Bovespa, a Brazilian stock index, rose 5.5% in a single day, close to 116,000, a level not reached since April. This is because of the first round of the presidential election. Results revealed that President Jair Bolsonaro of Brazil’s far-right party surpassed polls and still has a chance to win.

RBA raised interest rates by 25 bps

The Australian ASX 200 Index climbed strongly from a critical low and gained 3.75% to 6,700. The Reserve Bank of Australia surprised the markets with a modest 25 bps rate increase to 2.6%. This led to a drop in the Australian dollar and bond yields and supported an increase in equity prices.

Brazilian real gains 4% in one day 🔥

The Brazilian real increased by 4% versus the dollar, trading at about $5.2. BRL strenghtens as investors cheered an unexpectedly close outcome in the first round of the presidential elections. After no candidate receives a majority of more than 50% of the vote, the contest will proceed to a runoff scheduled for October 30.

News

Mastercard with new crypto fraud protection

Crypto Secure will enable card issuers to identify and block suspicious transactions with crypto exchanges.

UN calls on central banks to halt interest rate hikes

United Nations want central banks to take action and stop the aggressive tightening policy, but inflation is still high.
AUD/USD slumps following another rate hike
-1.52%

AUD/USD slumps following another rate hike

The RBA disappointed market players today, sending the AUD/USD pair lower.

Weekly macro report – Inflation-linked bonds are attractive

This macro report will be slightly different from the others. We will look at some assets where we see solid logic and will try to explain the BoE moves.