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EM currencies are all already seeing a lift, with the South African Rand hitting 20-month highs against the USD.
We can now expect a relatively rapid reduction in interest rates for all major currencies and a period of increased volatility.
Any significant volatility will come from the ECB’s forward guidance, with big question marks over further cuts in October and December.
The odds of a 50-bps rate cut on September 18th have risen. Uncertainty is the market’s worst nightmare; whatever the decision is, we will see serious volatility.
Recent developments have forced the USD lower as a September rate cut looks certain, but will the cut be 25bps or 50? And will Powell’s speech shed any light?
Today’s surprise data put paid to the dollar’s fall, with retail sales up 1% vs 0.3% expected – the biggest increase since January 2023.
As we head into the end of the week, Monday's panic seems like a bad dream. But, markets are nervous and expect more volatility over the coming months.
High leverage can increase your profit potential, but also increases your risk. These are the brokers offering the top high leverage Forex trading accounts.