The US economy contracted for the second straight quarter in Q2 according to data released on Thursday, falling into what is traditionally classed as a technical recession, though US government officials have attempted to deny it.
This week’s FOMC announcement was largely as expected, though the lack of a firm commitment to additional larger rate increases did send the US dollar lower against its major counterparts on Wednesday.
The Federal Reserve is expected to deliver another sizable interest rate hike at its July policy meeting on Wednesday, although we think that calls for a 100 basis point move are unjustified.
Disappointing economic data out of the US brought yields down worldwide and removed any chance of a 100 basis point interest rate hike from the Federal Reserve this week.
The European Central Bank delivered a larger-than-expected 50 basis point interest rate hike on Thursday afternoon, as policymakers in the bloc grapple to rein in the sharp increase in inflation in the Euro Area.
The US dollar was a touch stronger against its major peers on Wednesday, as markets braced for potential negative headlines on the European energy crisis and the possibility of a downside surprise at this afternoon’s highly anticipated European Central Bank meeting.
Rising bets that the European Central Bank could join the ‘50 club’, and raise rates by half a percentage point at its meeting on Thursday, provided solid support for the euro yesterday, lifting EUR/USD comfortably away from last week’s parity levels.
The euro officially broke through parity levels against the dollar for the first time in almost twenty years on Wednesday afternoon, after another US inflation beat triggered a fresh bout of greenback strength.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Cookie
Duration
Description
cf_use_ob
past
This cookie is set by the provider Cloudflare content delivery network. This cookie is used for determining whether it should continue serving "Always Online" until the cookie expires.
cookielawinfo-checkbox-advertisement
1 year
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Advertisement".
cookielawinfo-checkbox-analytics
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional
11 months
The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance
11 months
This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy
11 months
The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Cookie
Duration
Description
_ga
2 years
This cookie is installed by Google Analytics. The cookie is used to calculate visitor, session, campaign data and keep track of site usage for the site's analytics report. The cookies store information anonymously and assign a randomly generated number to identify unique visitors.
_ga_P8154YCRDP
2 years
This cookie is installed by Google Analytics.
_gat_gtag_UA_51187572_50
1 minute
Google uses this cookie to distinguish users.
_gid
1 day
This cookie is installed by Google Analytics. The cookie is used to store information of how visitors use a website and helps in creating an analytics report of how the website is doing. The data collected including the number visitors, the source where they have come from, and the pages visted in an anonymous form.
_hjFirstSeen
30 minutes
This is set by Hotjar to identify a new user’s first session. It stores a true/false value, indicating whether this was the first time Hotjar saw this user. It is used by Recording filters to identify new user sessions.
_hjid
1 year
This cookie is set by Hotjar. This cookie is set when the customer first lands on a page with the Hotjar script. It is used to persist the random user ID, unique to that site on the browser. This ensures that behavior in subsequent visits to the same site will be attributed to the same user ID.
CONSENT
16 years 4 months 14 hours 27 minutes
These cookies are set via embedded youtube-videos. They register anonymous statistical data on for example how many times the video is displayed and what settings are used for playback.No sensitive data is collected unless you log in to your google account, in that case your choices are linked with your account, for example if you click “like” on a video.
pardot
past
The cookie is set when the visitor is logged in as a Pardot user.
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Cookie
Duration
Description
IDE
1 year 24 days
Used by Google DoubleClick and stores information about how the user uses the website and any other advertisement before visiting the website. This is used to present users with ads that are relevant to them according to the user profile.
test_cookie
15 minutes
This cookie is set by doubleclick.net. The purpose of the cookie is to determine if the user's browser supports cookies.
VISITOR_INFO1_LIVE
5 months 27 days
This cookie is set by Youtube. Used to track the information of the embedded YouTube videos on a website.
YSC
session
This cookies is set by Youtube and is used to track the views of embedded videos.
yt-remote-connected-devices
never
These cookies are set via embedded youtube-videos.
yt-remote-device-id
never
These cookies are set via embedded youtube-videos.
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Cookie
Duration
Description
_lfa
2 years
This cookie is set by the provider Leadfeeder. This cookie is used for identifying the IP address of devices visiting the website. The cookie collects information such as IP addresses, time spent on website and page requests for the visits.This collected information is used for retargeting of multiple users routing from the same IP address.