From Marc to Market:
The foreign exchange market is quiet, and the US dollar is trading with a firmer bias. The widening Middle East war has lifted September WTI to $90 and October Brent to $93. Interest rates are firm and 10-year benchmark rates in a few European countries, and the United States are at new highs for the year. These developments overshadow today’s ECB meeting, for which there is practically no chance of a hike after last month’s move. Still, there is not reason to expect President Lagarde to push back against strong expectations of a hike in September.
The dollar’s climb to new 40-year highs against the Japanese yen met little more than the mantra about taking “decisive action” if necessary. At the same time, the PBOC set the dollar’s reference rate at a new three-year low. Lastly, the US is expected to make a new tariff announcement today or tomorrow given that the 10% Section 122 tariffs (balance-of-payments grounds) expire tomorrow....
....MUCH MORE
