US Inflation Rate Falls More than Expected

Table of Contents:

1. Market Moving Headlines

2. Interest Rates

3. Currencies

4. Commodities

5. Concept of the Week: Risk versus Speculation

6. Quote of the Week

Market Moving Headlines

• The annual inflation rate in the US slowed to 3% in June of 2023.

• The 2Y – 10Y Treasury yield curve surpasses 12 months of being inverted.

• Mexican peso hits highest level since 2015.

• Brent crude is back above $80.

• The Bank of Canada raised the target for its overnight rate by 25bps.

• Swiss Franc climbs to over 8-year high.

• The US 30-year mortgage rate tops 7%.

• Sterling climbs to a 15-month high.

• EU natural gas prices fell to a 1-month low.

• Dutch trade surplus widens in May.

• Japan machinery orders fell sharply in May 2023.

Interest Rates

Currencies

Commodities

Concept of the Week: Setting up a Financial Risk Management Program

Setting up a financial risk management program involves several steps to ensure comprehensive risk identification, assessment, mitigation, and monitoring. Some key steps to consider include:

• Define objectives: Cleary define the objectives of the program by determining the risks that need to be addressed.

• Establish a risk management framework: Develop the framework that includes policies, procedures and guidelines for risk identification, measurement, monitoring, and reporting.

• Identify and measure risks and determine risk appetite: A comprehensive assessment will help you to understand the likelihood and impact of each risk.

• Prioritize risks: Prioritize risks based on their potential impact on the organization and the likelihood of occurrence.

• Develop risk management strategies: This may involve implementing risk controls, transferring risk through insurance, or hedging instruments, diversifying investments, and creating contingency plans.

• Monitor and review: Monitor key risk indicators, conduct regular risk assessments, and evaluate the effectiveness of risk management strategies.

• Adjust and improve: Learn from the past and update risk management strategies accordingly.

• Establish a risk culture: Foster a risk-aware culture throughout the organization.

Quote of the Week

“The more you know about the past, the better prepared you are for the future.” – Theodore Roosevelt

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