Interest rate week: Fed and BoC Cut, BoJ pause, Nasdaq and S&P 500 ATHs [Video]
|In this webinar, I unpacked the key drivers shaping markets right now—interest rate decisions across the U.S., Japan, and Canada, the bearish turn in the U.S. dollar, and U.S. indices pressing into all-time highs.
Central banks in focus
Global monetary policy remains the anchor for market direction. Each central bank is navigating its own balance between inflation and growth.
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U.S. Federal Reserve: Balancing sticky inflation with a weakening labor market.
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Bank of Japan: Gradually shifting from ultra-loose policy, putting JPY back in play.
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Bank of Canada: Fighting inflation but constrained by slowing growth.
Bearish USD vs stronger JPY
Currency markets are reflecting these policy differences most clearly in the USD/JPY pair. The dollar’s momentum is fading, while the yen is quietly regaining ground.
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Fiscal risks and labor weakness are weighing on USD sentiment.
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Safe-haven flows and BOJ policy shifts are supporting JPY.
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USD/JPY highlights this divergence, pointing to a bearish dollar narrative.
Wall Street at all-time highs
Equities tell a different story, with investors leaning into risk assets. The Nasdaq and S&P 500 continue to set new records, fueled by sector strength and institutional flows.
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Nasdaq driven by AI momentum, semiconductor demand, and tech earnings.
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S&P 500 lifted by broad sector resilience and institutional flows.
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Optimism around earnings continues to outweigh recession fears.
Key takeaways
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Fed caught between sticky inflation and weakening jobs.
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BOJ policy shifts creating renewed demand for JPY.
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Nasdaq fueled by AI and semiconductor demand.
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S&P 500 lifted by broad sector resilience.
Watch the full breakdown and chart analysis to understand where opportunities may emerge next.
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