Commerzbank’s Michael Pfister argues that the Brazilian Real’s (BRL) strong run is likely to pause as fiscal expansion, renewed inflation pressures and a polarized election weigh on sentiment.
BNY’s Bob Savage highlights a strong JGB auction and falling yields as markets price a 76% chance of a Bank of Japan (BoJ) rate hike this month. Despite this, USD/JPY remains near 160 for a fourth day, with Japanese officials issuing repeated intervention warnings.
Rabobank’s Senior Market Strategist Stefan Koopman argues that higher energy and raw material costs, along with supply chain delays, are set to lift Euro area goods inflation in coming months.