Live Updates > Live Update Details
2025-09-12 16:53:18
[Market Expects Continued Fed Rate Cutting Cycle, Pressure on the US Dollar Remains Strong] 1. Monex Europe analysts point out that although light economic data on Friday stabilized the US dollar before the weekend, the Fed is likely to resume rate cuts on September 17th and initiate a steady easing cycle, and the US dollar will remain on the defensive for the next few months. 2. Commerzbank believes the euro could break through 1.20 against the US dollar, as improved economic growth prospects increase the central bank's tolerance. The bank raised its year-end euro forecast from 1.20 to 1.22. 3. Berenberg Bank expects UK economic growth to slow further, with inflation subsequently declining, and the Bank of England may cut interest rates twice in 2026. 4. UBS strategists point out that the 10-year US Treasury yield is at its highest level since 2008 and could fall further if economic data weakens. 5. DBS Bank believes that Indonesia's plan to inject 200 trillion rupiah into state-owned banks will not significantly boost loan growth and maintains its neutral rating on the banking sector. 6. UK government bond yields remain stable, and zero GDP growth in July highlights the dilemma of a weak economy and high inflation. ⑺ Gold futures rose 1% to $3,689.80 per ounce this week, on track for their fourth consecutive week of gains, as the market anticipates a 25 basis point rate cut from the Federal Reserve this week. ⑻ US stocks hit new highs and expectations of rate cuts boosted risk sentiment. ⑼ The US dollar index edged up 0.1% to 97.611, as markets continue to bet on a Fed rate cut despite inflation rising to 2.9% and initial jobless claims hitting a 2021 high. ⑽ The British pound fell to $1.3542. The UK economy stagnated in July, with an unexpected decline in manufacturing output and a widening trade deficit of £10.3 billion. ⑾ Economists at Swedbank expect the Riksbank to cut interest rates to 1.75% this month, and tax cuts in the 2026 budget could reduce inflation by about 1 percentage point next year. ⑿ Societe Generale strategists suggest Fitch may downgrade France's credit rating to A+ today. The 10-year French bond yield remained flat at 3.449%.
