Sunset Market Commentary

On Thursday 6 June, the ECB is widely expected to deliver a 25bp rate cut, largely because the governing council members have stated as much. The updated June staff projection is expected to suggest that the prevailing economic and monetary policy narrative stays broadly unchanged and we expect the rate cut to be formulated as […]

The ECB meeting next week is expected to be largely a stock taking meeting and not a place to send new policy signals. The meeting by meeting and data dependent approach is clear and Lagarde has highlighted that the profit, wages and productivity data will be key, albeit those data points will only come from […]

Federal Reserve (Fed) Chair Jerome Powell’s testimony yesterday wasn’t overly optimistic but it revived the expectation that a rate cut could come sooner rather than later. In the first day of his semiannual testimony before Senators, Powell said – for the first time in three years – that inflation is no longer the only threat […]