Stocks Falling, USD Bid - We Explain

While the world has faced and continues to face many challenges, these major historic errors of largely western central banks in completely missing the rise of a new inflation animal, continue to wreak havoc around the globe.

The Bank of England and Norway both raised rates by a full 50 points.

Fresh Recessions across Europe, the US and Australia are now likely inescapable.

While the world has faced and continues to face many challenges, these major historic errors of largely western central banks in completely missing the rise of a new inflation animal, continue to wreak havoc around the globe. Generating as it has the great historic error version 2. Which has been to allow themselves to fall into the position of being so far behind the recurve, as to need to aggressively raise rates belatedly in a way that only continues to trail the reality of the underlying challenge.

It really has, and continues to be a case of the application of last century central bank thinking and playbooks, to an entirely different this century inflation animal. Let alone taking into account the very altered state of the global economy we now live in.

Unfortunately, rather than robust debate around central bank policy relevance, we have developed an economics fraternity seemingly without imagination. One that unquestioningly falls into line behind the absurdity of doubling up on the pain and anguish of consumers and businesses, in a completely misplaced fight against the animal that will only respond to its own reflection and thereby self-correct.

We must wear the duration of self correction that most certainly resides in the current inflation.

These further rate hikes, after what has already been one of the most aggressive western central bank periods in history, are arguably both un-necessary and indeed harmful in a non-productive way. Yet, no doubt, some day, such poor policy decisions will be trumpeted by their executioners as having beaten inflation?

All cycles come to an end. This will of now however be only after the amplified unnecessary destruction of much capital and community well-being. Something central bankers are supposed to take account.  When in most probably the same period of time, or sooner in any case, this new inflation creature would have surrendered by its own accord. Sooner, because these further ignorant errors of rate hikes have now reached a tipping point where they themselves add fresh inflationary impetus.

Please stop the madness. The nature of the Federal Reserve, ECB, BoE, RBA and others current hiking cycle is likely not only to bring economies to their knees, but to keep activity depressed for perhaps the next 1-3 years.

Rather than a short term economic correction to take the edge off inflation, we have now entered the realm of lasting destruction not easily remedied.

Rate cuts are not coming, as we always forecast, but even if they did, they would at this point not be enough to save the West from one of the more severe and prolonged economic slow-downs we have perhaps ever experienced.

The outlook for all asset classes remains somewhat vulnerable to say the least.

This content may have been written by a third party. ACY makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or other information supplied by any third-party. This content is information only, and does not constitute financial, investment or other advice on which you can rely.

Düzenleme: ASIC (Australia), FSCA (South Africa)
read more
ATFX Market Outlook 29th July 2025

ATFX Market Outlook 29th July 2025

U.S. stocks finished mixed on Monday, with the S&P 500 advancing for a sixth consecutive session to reach another record close. The Nasdaq also hit a new all-time closing high amidst volatile trading, as investors gauged the impact of the US-EU trade agreement and prepared for key events later this week. The Dow Jones declined by 0.14%, while the Nasdaq increased by 0.33%
ATFX | 41 dakika önce
US data supports patient Fed, deal with EU boosts appetite

US data supports patient Fed, deal with EU boosts appetite

Dollar gains as data allow the Fed to stay in wait-and-see mode - US and EU secure trade deal, tariff clock is ticking for others - Wall Street at record highs amid trade optimism and better earnings - Pound slides after retail sales, yen retreats even as BoJ hike bets increase
XM Group | 17s 58 dakika önce
Gold Declines as EU Strikes Trade Deal

Gold Declines as EU Strikes Trade Deal

Gold held steady at $3,330 per troy ounce on Monday following three consecutive days of declines. The metal faced downward pressure after news emerged of a trade agreement between the US and the EU, dampening investor interest in safe-haven assets.
RoboForex | 19s 28 dakika önce
Gold sends negative signals

Gold sends negative signals

Gold slips below symmetrical triangle after US-EU trade deal. Technical signals lean bearish; resistance at 3,345.
XM Group | 19s 44 dakika önce
Markets Rise on Extended US-China Tariff Pause

Markets Rise on Extended US-China Tariff Pause

Markets rallied as the US and China are set to extend their tariff pause by 90 days, boosting risk sentiment and weakening the US Dollar. Gold slid below $3,350, while GBP and EUR gained. AUD held steady ahead of key CPI data. Investors now await the FOMC meeting and US job reports for further direction.
Moneta Markets | 20s 4 dakika önce