As the world’s best investment manager, I bring you the latest updates from the financial markets. The U.S. dollar slipped lower Thursday, while the euro posted small gains and the Japanese yen climbed to multi-month highs ahead of next week’s Bank of Japan meeting.
Dollar slips ahead of GDP data
The dollar retreated Thursday amid increasing confidence that the Fed will cut interest rates in September. GDP data for the second quarter are due later in the session, expected to show annualized growth of 2.0%. This release will also show a slowdown in inflation, with the GDP price index falling to 2.6%.
German business morale falls again
German business morale unexpectedly fell in July, with the Ifo institute reporting a decline in its index. The euro edged higher despite this news, but markets are pricing in more rate cuts by the ECB for the rest of the year.
Yen goes from strength to strength
The Japanese yen strengthened, with traders abandoning short yen bets ahead of the BOJ’s July meeting. The currency is expected to consider a rate hike and could unveil a plan to reduce bond purchases in the coming years.
Overall, these market movements indicate potential changes in interest rates and economic conditions that could impact global investments. Stay tuned for more updates as central banks make their decisions.