MXN

Happy Friday. Global equity indices are rebounding this morning after Citadel, Ken Griffin’s investment firm, stepped in to acquire the portfolio of technology-focused fund Situational Awareness, which had come under extreme stress as declining valuations forced it to meet margin calls from its lenders. The rescue of 25-year-old* Leopold Aschenbrenner’s firm reduces the risk of a disorderly liquidation of artificial intelligence-related holdings and has supported a modest recovery in risk appetite. The dollar—the principal beneficiary of the artificial-intelligence boom, buoyed by the concentration of investment in the US and strong foreign demand for related assets—is nonetheless struggling to find its...

Good morning. The Federal Reserve delivered a hawkish hold yesterday, leaving rates unchanged while laying the groundwork for future hikes. The statement was broadly unchanged from June, but three officials—Beth Hammack, Lorie Logan and Neel Kashkari—dissented in favour of an immediate increase, up from two at the prior meeting and illustrative of a growing tightening bias on the committee. Markets had assigned roughly one-in-three odds to a move ahead of the decision, and small position adjustments followed in its immediate aftermath. But a credibility shock followed. Chair Kevin Warsh opened his second press conference by declaring that “this Fed will...

Good morning. The dollar is easing off a one-month high ahead of tomorrow’s Federal Reserve meeting, caught between two countervailing forces: a fall in oil prices that is easing inflation fears, and a deepening selloff in global technology stocks that threatens the foundations of US exceptionalism. The euro, pound, yen, and Mexican peso are edging lower, while the Canadian dollar recovers its footing amid a lack of directional conviction. Oil prices are extending their declines following Washington’s abrupt suspension of air strikes on Iran over the weekend. President Trump yesterday claimed the US was having “good talks” with Tehran, and...

Good morning. The dollar is edging lower and trading ranges are narrowing across currency markets ahead of the personal consumption expenditures report—the Federal Reserve’s preferred inflation gauge—at 8:30. Evidence of resilient underlying price pressures might reignite the dollar’s rally—or a softer reading could open a wider reappraisal of the higher-for-longer policy expectations that have driven the currency’s outperformance over the past week. Equity markets are setting up for gains at the open after a blowout forecast from Micron restored confidence in the artificial intelligence boom. The memory-chip maker provided a quarterly revenue outlook well above analyst estimates, sending its shares...