UBS Global Wealth Management has raised the odds of a U.S. recession to 25% from 20%, citing weakness stemming from softer jobs growth and the July unemployment data which stoked fears of a downturn.
In August, the U.S. dollar selloff was undoubtedly the focal point for the foreign exchange market, BoA analysts said, in a note dated Aug. 26, while the broad euro rally may have been underappreciated by investors.
Gold prices fell in Asian trade on Tuesday amid some pressure from a rebound in the dollar, although the prospect of lower interest rates and increased safe haven demand kept the yellow metal in sight of recent peaks.
The prospect of lower rates bodes well for speculative assets such as crypto, given that it frees up more liquidity that can be invested into the sector. This notion was a major driver of crypto’s 2021 bull run.
Canada’s Bank of Montreal (BMO) reported quarterly profit below analysts’ estimates on Tuesday, its sixth miss in a row, hurt by weakness in its U.S. retail segment and as the lender made bigger than expected provisions for potential bad loans.
