Markets are cheering Fed communication leaning toward December rate cuts, positive for risk assets.
Joumanna
Mahjabeen
More Fed rate cuts priced in indicate positive risk outlook, dollar rally ending, dollar expected to weaken from here.
How do you see USD impact with stabilization in risk sentiment and risk-on mood?
Joumanna
Mahjabeen
FX markets are forward-looking - anticipating Fed cuts driving dollar weakness. Fed cutting only one piece of dollar weakness equation.
Fed Beige Book showed every region saw price increases - is sticky inflation an underpriced risk for 2026?
Joumanna
Mahjabeen
That is one point to note, but Fed trying to balance between rising inflation and unemployment rate moving higher.
Your strongest call has been euro - where from here with ECB holding and Fed cutting?
Joumanna
Mahjabeen
100% - rate differential is one thing, big fiscal agenda coming through will take 1-2 years to see uplift.
Pound up full point - has Chancellor done enough to satisfy market concerns about budget?
Joumanna
Mahjabeen
Too much negativity was priced in, announcement was 50-50 with income tax increases coming later, giving fiscal impulse to households through cost of living subsidies.
Will budget have knock-on effects on Bank of England decision making?
Joumanna
Mahjabeen
100% - budget is disinflationary, makes it easier for Bank of England to go ahead.