Markets Brace For Crucial Interest Rate Shake-Up: What To Expect From Federal Reserve, Bank of Japan, Bank Of England This Week
Portfolio Pulse from Piero Cingari
This week, the Federal Reserve, Bank of Japan, and Bank of England are set to meet, with potential interest rate changes on the horizon. The Federal Reserve is expected to keep rates unchanged but may signal future cuts. The Bank of Japan might proceed with a small rate hike, while the Bank of England faces a tight decision between holding rates steady or enacting a rate cut.
July 29, 2024 | 4:16 pm
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POSITIVE IMPACT
The Invesco CurrencyShares Japanese Yen Trust (FXY) has rallied over 4% in July, suggesting traders anticipate a rate hike from the Bank of Japan.
The anticipation of a rate hike by the Bank of Japan has led to a significant rally in the Japanese yen, tracked by FXY. This suggests a positive short-term impact on FXY if the rate hike materializes.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The Invesco CurrencyShares British Pound Sterling Trust (FXB) is up 1.6% this month, reflecting the British pound's strength amid potential rate decisions by the Bank of England.
The British pound has strengthened, leading to a rise in FXB. However, the outcome of the Bank of England's rate decision remains uncertain, making the short-term impact on FXB neutral.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70