GS Morning Market Update

This report covers the Hungarian central bank's rate cut, analysis of current GBP market flows, and the outlook for Australian interest rates following inflation data.

Key Takeaways

• 1.The National Bank of Hungary (NBH) cut policy rates by 25bp to 6.00%, signaling a dovish stance for further cuts.
• 2.Current GBP strength is driven by a short squeeze rather than fundamental long-term value, as the currency remains overvalued.
• 3.Australia's trimmed mean inflation accelerated to 3.6% yoy, leading Goldman Sachs to forecast a 25bp rate hike in August.

Table of Contents

• FX Trader Call Today
• NBH Recap
• GBP: Short Squeeze Not Fundamental Long
• AUS ECON (BOAK) – Australia CPI: Inflation Well Above Target

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