May 27, 2024
United States:
Dollar Bulls Retreat as US Economic Print Cools, CFTC Data Show
Bullish sentiment on the dollar is rapidly receding amid signs the US economy is cooling, with a group of investors holding a net short position for the first time in six weeks.
While leveraged funds still held bullish wagers on the greenback last week, they were dwarfed by increased net dollar shorts owned by asset managers, Commodity Futures Trading Commission data show. Combined they held a net short position with contracts worth $5.36 billion as of May 21. That compared with a net $2.02 billion long position a week earlier.
Europe:
ECB Shouldn’t Exclude Second Rate Cut in July, Villeroy Says
The European Central Bank shouldn’t rule out lowering borrowing costs at both its June and July meetings, Governing Council member Francois Villeroy de Galhau said — pushing back against fellow monetary officials who are uncomfortable at the idea of consecutive cuts.
Villeroy told Germany’s Boersen-Zeitung newspaper that he favors “maximum optionality” after next month’s “done deal” reduction in the deposit rate, which he said can only be derailed by a shock.
Asia:
BOJ Signals Room for Interest Rate Hikes After Price Norm Shift
Bank of Japan Governor Kazuo Ueda and his deputy indicated there is scope for gradually raising interest rates now that the nation has shifted away from an inflation norm of 0%.
“While we still have a big challenge to anchor the inflation expectations to 2%, the end of our battle is in sight,” Deputy Governor Shinichi Uchida said in a speech at the BOJ’s annual international conference Monday, referring to the central bank’s mission to overcome deflation.
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