Interest rate signals from Jackson Hole: Euro rise is good for the exit

Analyzes and investment recommendations from FUCHS currencies to the euro, pound sterling, gas and much more

Of the Euro is picking up and appears to be benefiting from the followingmath of Fed statements in Jackson Hole. There, Fed Chairman Jerome Powell had announced a constantly sporty hike in interest rates. In his slipstream, ECB Director Isabel Schnabel had also spoken of the fact that the ECB had to “resolutely” fight inflation. These are completely new sounds from the mouth of the economist, who saw “no inflationary pressure” in January and had promised that the ECB might “possibly herald the turnaround in interest rates” in June.

On the foreign exchange market is the interest– Message still arrived. Traders are now betting that the ECB will Interest charges more increased. There is even speculation regarding a rate hike of 75 basis points in September. The increased inflation rates are grist to the mill of this speculation. The dollar and other currencies will therefore no longer expand their interest rate advantage as quickly. Sometimes it will even shrink. At the same time, the new crisis instrument for the unlimited and non-quota purchase of government bonds takes the interest pressure off the southern countries. This reduces the risk of a euro crisis, at least in the short term.

Into the safe havens

This pushes perspective pushes the Euro
once morest francs, lb and dollars on. The effect is unlikely to last long and structurally the euro will be further weakened. Therefore, from the point of view of FUCHS foreign exchange a good opportunity in CHF, USD and also ENOUGH to diversify.

Is Liz Truss politicizing the Bank of England?

There is also news from the British Isles. In all likelihood, Liz Truss will be Britain’s next prime minister. The votes of Bank of England she probably hasn’t. Because their announcement that they would make the central bank one of the “most effective central banks in the world” is seen by many as a threat.

Investment Opportunities in Indonesia

Surprised with a rate hike Indonesia’s central bank the markets. The rupiah is strengthening and breaking its years-long depreciation trend. Explain how investors benefit from this FUCHS foreign exchange.

Gas also scarce in the USA

Gas is also in focus in the US. There, too, the energy resource is one of the biggest drivers of inflation. During the gas price While in Europe it is currently falling, it is trending upwards in the USA.

Brazil soon no longer No. 1 sugar producer

The Brazilian Zuckerfarmers have little to smile regarding at the moment. The drought affects the plants considerably. That’s why another country will replace Brazil as the world’s largest sugar producer by the end of the year. What does that mean for the price?

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