June 26, 2024
United States:
Dollar Soars to Fresh 2024 High as Fed Diverges From Major Peers
A gauge of the dollar’s strength rose to its highest level since November as the first interest-rate reduction from the Federal Reserve appears distant.
The Bloomberg Dollar Spot Index rose 0.4% to 1,271.36 on Wednesday, marking a new peak for the year. The greenback has been gaining in 2024 as the Fed’s higher-for-longer policy leaves a wide interest-rate gap with other leading economies. The yen declined to the weakest level since 1986 sparking risks of another intervention by the Japanese authorities, who maintain their interest rates extremely low.
Europe:
ECB’s Rehn Sees Bets for Two More Cuts in 2024 as Reasonable
Investor expectations for the European Central Bank to loosen monetary policy twice more this year — and bring borrowing costs to as low as 2.25% in 2025 — are fair, according to Governing Council member Olli Rehn.
In some of the most explicit remarks from an ECB policymaker on the path for interest rates, the Finnish central-bank chief also said that while officials must ensure inflation returns to 2%, they shouldn’t overly dampen economic activity.
Asia:
Economists Raise China Growth Forecasts as Exports Improve
The outlook for China’s exports is set to improve, buttressing growth in the world’s second-biggest economy even as consumer spending slows, according to a Bloomberg survey of economists.
Exports are expected to climb 4.3% this year from a year ago, according to the median forecast of 22 economists surveyed over June 17-24. That’s a jump from the 2.8% gain forecast in a May survey. China’s economy may expand 5%, up from the 4.9% projected in May, according to the median of 68 estimates.
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
