Interest Rates Outlook

The dollar is gaining from lower import tariffs and fading US recession fears, but it's too early to call this the start of a sustained uptrend.

The temporary China-U.S. trade deal has sparked market optimism, but it’s too soon to dismiss import tariffs as a key factor in growth outlooks, keeping interest rate market volatility elevated.
 

There are several reasons why recession fears in the U.S. will increase. At the same time, deflationary pressures are growing in Europe. This means continued downward pressure on long-term interest rates, but we expect a major change in the long-term rates trend in a few months’ time....