Caution evident from the Fed’s minutes against cutting rates too quickly has supported the narrative of ‘higher for longer’.
Germany’s energy-intensive industries, low investment, ageing population and weak growth, rather than high government debt, represent challenges to its AAA credit rating – hence the need to reform the debt brake.
The U.S. dollar edged higher in early European trade Monday, retaining support at the start of a week packed with risk events, including a Federal Reserve policy meeting and key employment data. Attention this week will squarely be on the Federal Reserve's two-day policy meeting, which concludes on Wednesday. The U.S. central bank is widely expected to keep interest rates unchanged, with investors eagerly awaiting Fed Chair Jerome Powell’s post policy meeting press conference for any indication that officials believe they have progressed enough in their battle against inflation to begin cutting rates sooner rather than later.