Markets start to question Fed credibility, fiscal issues stay in focus for the UK, while Japan&#x27;s monetary and FX policy come into the spotlight. We discuss the Fed Chair&#x27;s mixed messages and preview next week&#x27;s labour market release. In our special UK segment, we reflect on the BoE&#x27;s &quot;dovish&quot; hold and discuss fiscal plans under the new PM. In Asia, the BOJ and JPY intervention are in focus, and we also look ahead to the RBI and regional CPI data ahead. Chapters: US: 02:49 Europe: 13:00, Japan: 25:19, Rest of Asia: 30:08.

The Week Ahead – Mr Un-credible?

Nomura – The Week Ahead

We've seen a material tightening, not just in nominal rates, but in real rates too. And we're observing it. We're trying to stay out of that because many of you might be interested in our reaction function. We're interested in the reaction of financial markets.

Hello and welcome to The Week Ahead on Nomura Podcast. I'm Dominic Banning, head of G10FX Strategy at Nomura in London. And today is Friday, the 31st of July. Well, what a week it's been for financial markets. A huge amount to discuss following central bank meetings in the US, UK and GPLAN and plenty else going on as well. The first of those meetings saw Fed Chair Kevin Walsh deliver an unchanged interest rate in a somewhat expected decision.

But the following press conference sowed a good deal of confusion into the markets. A lack of clear forward guidance, not just on the policy path, but even on the Fed's reaction function. The sense that Walsh will let markets lead rather than follow the Fed, as we heard from the comments at the top of the show there. And some less than effusive support for the current specific inflation targets all combined to see the US curve twist steepen, whereby the front end of the yields fell, but longer term yields rose.

Equity markets have also been wobbling, given ongoing concerns in the AI space with higher funding costs not helping matters. And the dollar also dropped sharply as the market appeared to show some concern about the Fed shares commitment to delivering on lower inflation. We'll discuss all of this, the future Fred Outlook and the upcoming labor market data in the US with Jeremy Schwartz in New York.

The Week Ahead – Mr Un-credible?

Read the full transcript

The candid version is on a podcast,
not the earnings call.

The Week Ahead – Mr Un-credible?

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.