Fed Rate Cuts Seen Despite Powell's Stance; US Slowdown Feared While Yen, Yuan May Strengthen
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The markets believe the Fed will cut rates further despite Powell's insistence of no easing bias. A third and fourth cut are being priced in.
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US economic data shows a dramatic slowing after strong Q3 growth. Q4 GDP estimates have dropped significantly.
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Dollar weakness is expected to ease pressure on the BOJ and PBOC. The yuan and yen could strengthen if dollar downtrend continues.
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Australia's RBA meets next week and may hike rates despite signs of slowing economy. The Aussie looks vulnerable without a rate increase.
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UK Q3 GDP and inflation data out next week. CPI set to fall sharply but will likely remain highest in G7. BOE seen beginning rate cuts in 2024.