Month-end flows have helped the US dollar recover from the previous week. DXY rose 0.2%, reducing its monthly decline to 2.1%. This is setting up the Dollar for its biggest monthly drop this year.
At the close of today, Nvidia will release its quarterly earnings. Wall Street expects the company to report second-quarter adjusted earnings of 65 cents per share on revenue of $28.74 billion, double what it earned in the comparable quarter a year ago.
Demand for generative AI products over the past year has fueled Nvidia’s growth. This earnings report has become one of the most important data points that the investing world will pay attention to and markets will react accordingly. Let’s see if it’s still the ‘Magnificent One’.
The Swiss Franc has moved more than 6% against the US dollar since the end of June. This is in large part to pricing in US interest rate cuts, where 100 bps of reductions are expected by the end of the year, and 225 bps by the end of 2025.
However, cautious policy making from the Fed may lead to a slower easing cycle. Coupled with early signs that Swiss inflation will slow quicker than the SNB estimates, we may see the Franc lose momentum over the coming months.
During Tuesday we saw cable rise to a recent high of 1.3266. Since the beginning of August, we’ve seen GBPUSD increase by roughly 380 pips.
USDJPY gained 0.4% to 144.50 following remarks from BoJ Deputy Governor Ryozo Himino. Himino stated that the BoJ will raise rates as long as inflation moves in line with the banks main views, with markets being monitored with “utmost vigilance” in case any market turbulence does occur.
