ING Economic and Financial Analysis

The Bank of Japan did not give in to market pressure and kept its dovish guidance intact. However, the wording on the economic and inflation outlook paves the way for a hike in the second quarter in...

The Bank of Japan kept its major policy settings unchanged and made no changes to its forward guidance, pushing the yen down against the dollar. But we think the shift in tone is clear and major...

The positive sentiment following the Fed’s comments continued yesterday, with energy and metals trading in green. As for metals, new sanctions by the UK on Russian metals combined with positive...

The dollar is recovering some ground after the pushback from Fed officials against rate-cut bets. However, the dovish Dot Plot may work as an anchor for rates and keep the dollar soft into the end of...

As the dust settles after a furious period for central bank meetings we are left to conclude that European policymakers have chosen to push back more than the Fed when it comes to what the market...

By Benjamin SchroederWhat a week it's been. Central bank anticipation first. Then, evidence of a holiday party at the Fed. Followed by failed attempts from Frankfurt and London to poop that party. But...

By Benjamin SchroederThe surprise from the FOMC was partly the extra 25bp implied cut added to 2024, but it was more the lack of pushback from Chair Powell on the 2024 rate cut narrative. He almost...

The dovish comments from the Federal Reserve helped to improve sentiment yesterday, with gold prices recovering back to around US$2,030/Oz. Crude oil prices also gained on OPEC and EIA reports,...

In a somewhat surprising move, the Fed has acknowledged recent disinflation trends and poured gasoline on the fire of easing expectations for 2024. The news has understandably been greeted by global...

By Benjamin SchroederMarket expectations of policy easing for the next year are about to get tested tonight with the Federal Reserve likely to signal that there is still a job to get done. Yesterday's...

It is now a very consensus view that the Fed will push back against rate cut expectations. We expect the Dot Plots will show only 50bp of cuts in 2024. Still, markets may feel less comfortable about...

By Benjamin SchroederPayrolls day is usually pivotal. This one more than most, as the US 10-year has fallen sharply from 5% down towards 4% without material evidence of any labor market recession. We...

The big yen rally has been exacerbated by positioning factors, but markets may keep speculating on a BoJ December hike unless Japanese officials protest against hawkish bets before the meeting. A...

The Fed last raised rates in July and we think that marked the peak. There is growing evidence that tight monetary policy and restrictive credit conditions are having the desired effect on depressing...

By Benjamin SchroederThe 10-Year UST yield is closing in on the 4% mark as if a weak jobs report tomorrow was a given. But underlying is also a further slide of inflation expectations. The front end...

Ahead of tomorrow's US jobs data release, the short-term highlight in the FX market is the continued outperformance of the yen. This has nothing to do with a risk-averse environment (asset markets are...