The Yen and Yuan are the weakest Asian currencies this year
The US dollar’s sustained rise is causing Asian currencies to fall to multi-month lows and pressuring the euro, leading Japan and China to defend their exchange rates. Japan’s top currency official warned of rapid yen falls and China’s central bank issued its most aggressive daily reference rate for the yuan, causing the controlled currency to…
FINMA CEO has resigned due to health reasons
FINMA’s head, Urban Angehrn, has resigned due to health reasons, six months after being criticized for failing to prevent Credit Suisse’s collapse. Angehrn, who led the authority since November 2021, resigned for health reasons. FINMA has been criticized for failing to stop Credit Suisse’s recent crises sooner or better, and local media alleged that FINMA…
US Dollar rose 0.5% and recession predict are shrink
The US dollar reached a five-month high on Tuesday, extending its 4-5% gain since mid-July. Despite sluggish Chinese and European growth, investors are bullish on the dollar due to rising US yields and falling equity prices. Goldman Sachs Group reduced its US recession prediction from 20% to 15%. The US economy is surviving significant monetary…
Banks are increasing liquidity from securities investment
Mid-sized banks are concerned about potential US regulators tightening capital and liquidity requirements for banks with $100 billion or more. The Fed’s tightening since March 2022 has flooded banks’ longer-term securities, causing investor concern over bank balance sheets. Banks have reduced securities investments or sold them at a loss to increase liquidity. Bank of America…
Banks are rushing cash after SVB disaster
JPMorgan and Bank of America are reducing risk and strengthening their balance sheets due to Fed shrinkage, falling deposits, and increased short-term rates. They rushed cash after the SVB disaster, increasing cash assets to $3.49 trillion in two weeks. As banks face pressure on deposit costs and hold higher liquidity, loan growth is expected to…
US lenders got insurance to face slowing economy
US lenders are hoarding capital to cope with a slowing economy, deposit outflows, and stricter liquidity rules, potentially impacting mid-sized banks. This risk-averse approach is a response to the sector recovering from recent bank failures, which may limit lending. As of August 23, US banks had $3.26 trillion in cash, up 5.4% from 2022.
Gold recovered strongly after FED maintain interest rates on hold
Mixed U.S. labor data suggests the Federal Reserve will maintain interest rates on hold, lifting gold prices slightly. This dragged on currency and Treasury yields, while gold appreciated due to lower opportunity costs. Copper rose due to China stimulus measures and corporate activity rebound. Metal market trading is expected to be constrained due to a…
Oil steadied on the highest level this month
Oil prices reached their highest level since November due to OPEC+ production limits tightening the market. Brent remains above $88, while West Texas Intermediate futures remain above $85 a barrel. Russia predicts OPEC+ will announce crude export cuts soon, and Saudi Arabia and Moscow may extend voluntary limitations until October. Oil prices rose this quarter…