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Showing results for: "cpi"

Dollar Surges on CPI Beat, Gold Pressured

Market Summary The Dollar Index surged on the back of robust inflation data, surprising investors and challenging expectations of an imminent rate cut. US Consumer Price Index (CPI) figures outpaced forecasts for the fourth consecutive month, reaching 3.5% over the 12 months to March. This unexpected inflationary pressure prompted a reevaluation of …

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All Eye on the U.S. CPI

Market Summary Market participants are keenly awaiting the U.S. Consumer Price Index (CPI) data set for release today, a crucial determinant of the Federal Reserve’s forthcoming monetary policy direction. In the lead-up, the Dollar Index (DXY) has experienced a downturn, struggling to stay above the critical 104.00 threshold. Concurrently, a decline in …

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Gold Prices At All-Time High Ahead Of CPI

Market Summary As the financial markets brace for the forthcoming U.S. Consumer Price Index (CPI) announcement on Wednesday, U.S. equities presented a subdued performance, while the dollar index witnessed a modest decline. The anticipation surrounding the Federal Reserve’s rate-cutting measures has been significantly adjusted, with expectations now set at a 60 basis …

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Financial Market Stall Ahead Of CPI

Market Summary The U.S. financial markets remained relatively calm in anticipation of the forthcoming Consumer Price Index (CPI) reading, slated for release later today. This inflation data is seen as a critical determinant for market speculation on the timing of potential monetary policy moves by the U.S. Federal Reserve. Concurrently, expectations of …

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Financial Market Stall Ahead of CPI

Market Summary The U.S. financial markets remained relatively calm in anticipation of the forthcoming Consumer Price Index (CPI) reading, slated for release later today. This inflation data is seen as a critical determinant for market speculation on the timing of potential monetary policy moves by the U.S. Federal Reserve. Concurrently, expectations of …

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Upbeat Japanese CPI Fuels Yen’s Strength

Japan’s Core Consumer Price Index (CPI) data exceeded market expectations at 2%, strengthening the Japanese Yen against other major currencies. The bullish momentum in U.S. equity markets appears to be tapering off, trading flat in anticipation of the crucial U.S. Personal Consumption Expenditures (PCE) reading. This data is poised to influence market …

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All Eyes On Japan’s CPI

The robust U.S. stock markets, having reached record highs, paused for breath last Friday, reflecting a momentary halt in their bullish momentum. The robust U.S. stock markets, having reached record highs, paused for breath last Friday, reflecting a momentary halt in their bullish momentum. Conversely, the dollar index has maintained a subdued …

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Powell Assures Rate Cut, but Will Next Week’s CPI Report Disrupt the Strategy?

Tuesday, 12 March 2024, 14:30 – U.S CPI (YoY) (Feb) In January, the annual rate of inflation dropped less than expected to 3.1% from 3.4% in December. Numerous economists and Federal Reserve officials have cautioned that the final push to bring inflation back to the bank target of 2% would be a …

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Powell Assures Rate Cut, but Will Next Week’s CPI Report Disrupt the Strategy?

Tuesday, 12 March 2024, 14:30 – U.S CPI (YoY) (Feb) In January, the annual rate of inflation dropped less than expected to 3.1% from 3.4% in December. Numerous economists and Federal Reserve officials have cautioned that the final push to bring inflation back to the bank target of 2% would be a …

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Robust CPI Report Sparks Surge In Dollar Demand

January’s inflation exceeds expectations at 0.30% monthly and 3.10% year-on-year, reinforcing the Dollar’s strength. The Dollar Index hits a three-month high, driven by robust economic indicators, including strong job reports, GDP figures and US inflation. January’s inflation exceeds expectations at 0.30% monthly and 3.10% year-on-year, reinforcing the Dollar’s strength. Market expectations for …

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Robust CPI Report Sparks Surge In Dollar Demand

January’s inflation exceeds expectations at 0.30% monthly and 3.10% year-on-year, reinforcing the Dollar’s strength. The Dollar Index hits a three-month high, driven by robust economic indicators, including strong job reports, GDP figures and US inflation. January’s inflation exceeds expectations at 0.30% monthly and 3.10% year-on-year, reinforcing the Dollar’s strength. Market expectations for …

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CPI Strength Dampens Fed Rate Cut Prospects; Market Focus Turns to FOMC Meeting Minutes for More Cues

Wednesday, 21 Feb, 21:00 – FOMC Meeting Minutes In January, the Federal Reserve declared a steady policy rate of 5.25% – 5.5%, acknowledging the uncertain trajectory toward a rate cut in 2024. While many investors are hopeful for a shift from rate hikes to cuts by the Fed in the upcoming months, …

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Soft CPI Lead To DXY Crashes

The Dollar Index took a substantial hit, plummeting over 1.5% in the wake of the U.S. Consumer Price Index (CPI) release. The Dollar index took a substantial hit, plummeting over 1.5% in the wake of the U.S. Consumer Price Index (CPI) release. The data indicated a softening of inflationary pressures, leading the …

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Decline in UK CPI Signals Rate Hikes Efficacy

The Week Ahead: Week of 14 August (GMT+3) Tuesday, 15 August, 15:30 – US Retail Sales (MoM) (Jul) In May, US Retail Sales showed a 0.2% increase on a monthly basis, falling short of the anticipated 0.5%. Nevertheless, there’s a silver lining as May’s figures were revised upwards from 0.3% to 0.5%, …

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CPI Hammers DXY To Below $100

The U.S. dollar continues to decline, breaking below the key psychological support level of $100. The release of lower-than-expected CPI data on Wednesday has significantly impacted the financial market. The equity market has extended its gains, while gold prices have risen by over 1.5% following the data release. Conversely, the U.S. dollar …

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CPI Shows U.S. Inflation Softening

US CPI released yesterday showed a two-year low inflation rate of 3%, leading to a decline in the US dollar. Yesterday’s release of the U.S. Consumer Price Index (CPI) revealed that the country’s inflation had reached a two-year low of 3%, lower than the previous reading and the forecasted figure. As a …

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Higher Chance For Rate Pause With Softer CPI

Inflation came in lower-than-expected and versus the previous month, signalling a June pause on the Fed’s hiking cycle. The equity markets experienced gains, accompanied by a weakening of the dollar, following the release of the U.S. Consumer Price Index (CPI) yesterday. The U.S. CPI decreased to 4% from the previous month’s 4.9%, …

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Markets Waiting For CPI To Gauge Fed’s Next Move

The U.S. equity market witnessed a notable rally as investors expressed optimism about the possibility of the Federal Reserve pausing the rate hike The U.S. equity market witnessed a notable rally as investors expressed optimism about the possibility of the Federal Reserve pausing the rate hike, with the decision scheduled to be …

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Market Sideways Ahead Of U.S. CPI 

Dollar movement remains muted as investors await inflation data as well as the upcoming FOMC meeting The upcoming week is expected to be quite busy for investors, as significant events are anticipated to have a profound impact on the market. The U.S. Consumer Price Index (CPI) will be released on Tuesday, setting …

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Soft CPI Give Fed Room To Pause Rates

A lower-than-expected inflation has lent optimism to the markets The latest U.S. inflation figures have provided the Federal Reserve with some respite on its upcoming rate hike decision. The data for April showed a slight drop in inflation to 4.9% from 5%, easing the Fed’s dilemma. As a result, the dollar weakened …

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US CPI Shows Signs Of Moderation But Caution Still Advised

Markets have posted a slight rally after inflation came in lower than analyst expectations even as a debt crisis looms. On Wednesday, the U.S. Bureau of Labor Statistics released the year-on-year CPI readings for April, where a rise of 4.9% came in marginally lower than economists’ expectations of 5.0%. Meanwhile, month-on-month core …

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Markets Quietly Await U.S. CPI

The markets are quiet before the U.S. CPI released on Wednesday (10th May). U.S. equity markets moved sideways while the dollar index and gold prices have little change as the market is digesting the renewed banking sector risk as well as developments regarding the U.S. debt ceiling. On the other hand, Australia …

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“Goldilocks” Markets Sees Diverging Signals After CPI Release

On Tuesday, February 14, the U.S. Consumer Price Index (CPI) figures were released, showing an increase of 0.5% in January and the highest in three months but in-line with expectations. The year-on-year increase, meanwhile, is 6.4%, up slightly from market forecasts of 6.2%. Meanwhile, the core CPI, which excludes volatile food and …

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Downbeat CPI Read Sends Shares Tumbling

On Tuesday (GMT+3), the US released its year-on-year Consumer Price Index (CPI) figure, showing that inflation came in at 8.3%, higher than the expected 8.1% but lower than the previous month’s 8.5%. The month-on-month core CPI change, meanwhile, came in at an increase of 0.6% versus an expected increase of 0.3%. While …

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Cooling US CPI Numbers Give Hope for Soft Landing 

On Tuesday evening (GMT+3), the US Consumer Price Index (CPI) for July was released, showing a year-on-year growth of 8.5% – lower than the expected growth of 8.7% and the previous month’s increase of 9.1%. Core CPI, which excludes volatile categories like food and energy, comes in at an increase of 0.3% …

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US CPI Sees Yield Curve Inversion

On Wednesday afternoon (GMT+3), the US Consumer Price Index (CPI) figures for June were released, showing that consumer prices grew by 9.1% year-on-year, the fastest pace of inflation growth since November 1981. This is higher than the forecast of 8.8% and May’s figure of 8.6%. Meanwhile, Core CPI increased 0.7% month-on-month, higher …

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Chances of 50-point Rate Hike Increases as US CPI Hits 40-year High

On Thursday (GMT+2), the US released its Consumer Price Index data (CPI) for January. Results showed that inflation, as measured by the CPI, increased by 7.5% year-on-year, beating out the forecasted 7.3% and posting the highest gain since 1982. The results also mark an increase of 0.6% from December, continuing the fourth …

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Fed Expected to Expedite Rate Hikes as US CPI Beats Expectations

On January 12 (Wednesday) afternoon (GMT+2), the United States announced its year-on-year, not seasonally-adjusted Consumer Price Index (CPI) for December. US CPI rose 7% in 2021, the largest 12-month gain since 1982, according to data released by the Labor Department. CPI rose 0.5% month-on-month in December, slightly beating the market expectations of …

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Japanese Yen Seesaw after Hitting 160 Mark

Market Summary The U.S. Personal Consumption Expenditures (PCE) data released last Friday slightly surpassed market expectations and the previous reading, supported by recent positive economic indicators in the U.S. This bolstered the dollar index, as investors interpreted the data as a sign that the Federal Reserve may scale back its plans for …

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All Eyes on Today’s U.S. PCE

Market Summary The release of the U.S. GDP data yesterday sent shockwaves through the financial markets, as the GDP price index surpassed both forecasted and previous readings. This has prompted market speculation that the U.S. PCE index, scheduled for release later today, will also exceed expectations, dampening prospects for Fed interest rate …

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Eye On U.S. GDP Today

Market Summary The U.S. equity markets saw a halt in their two-day rally, primarily pulled down by disappointing earnings from Meta Platforms. As a result, both the Nasdaq and S&P 500 were left nearly unchanged, while the Dow Jones Industrial Average closed lower. Market focus is now turning to Alphabet and Microsoft, …

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Wall Street Closes Higher On Profit Optimism

Market Summary In the latest trading session, the Dollar Index retreated, failing to sustain its position above the $106 mark. This movement coincides with heightened buying interest in U.S. 2-year Treasuries, suggesting that investors are bracing for slower economic growth and potentially anticipating a Federal Reserve rate cut within the year. In …

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U.S. Stock Markets Rebound On Profit Optimism

Market Summary As we delve deeper into the earnings season, the spotlight shifts to the U.S. equity market, particularly with the impending release of earnings reports from tech giants such as Tesla, Microsoft, Meta Platforms, and Alphabet. Anticipation for a potential rally in the AI sector has fueled optimism among investors, propelling …

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U.S. Stock Markets Rebound On Profit Optimism

Market Summary As we delve deeper into the earnings season, the spotlight shifts to the U.S. equity market, particularly with the impending release of earnings reports from tech giants such as Tesla, Microsoft, Meta Platforms, and Alphabet. Anticipation for a potential rally in the AI sector has fueled optimism among investors, propelling …

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U.S. Stock Markets Rebound On Profit Optimism

Market Summary As we delve deeper into the earnings season, the spotlight shifts to the U.S. equity market, particularly with the impending release of earnings reports from tech giants such as Tesla, Microsoft, Meta Platforms, and Alphabet. Anticipation for a potential rally in the AI sector has fueled optimism among investors, propelling …

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Unconfirm Explosion Stimulates Commodities Prices

Market Summary The market was roiled by unconfirmed reports of explosions in Iran, Iraq, and Syria, adding to the already tense atmosphere following Iran’s recent attack on Israel over the weekend. Anticipation of potential retaliation from Israel contributed to heightened nervousness in the markets throughout the week. Gold prices surged above the …

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Oil Prices Plummet On Strong U.S. Crude Inventories Build-up

Market Summary The U.S. dollar experienced a technical retracement, easing from its 2024 peak and breaking below the $106 mark. Despite this, robust U.S. economic performance and the Federal Reserve’s hawkish stance are expected to provide underlying support to the dollar. Concurrently, the easing dollar has allowed its peers to make gains, …

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Dollar Fuels By Powell Hawkish Statement

Market Summary The market’s attention has shifted from Middle East tensions to remarks made by Federal Reserve Chair Jerome Powell. Powell’s recent speech signals that the U.S. central bank may opt to maintain interest rates at elevated levels for an extended period, given the backdrop of robust economic indicators and surprisingly high …

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Upbeat U.S. Retail Sales Boost Dollar

Market Summary In yesterday’s trading session, the U.S. dollar saw appreciable gains, buoyed by stronger-than-expected U.S. Retail Sales data. This robust economic indicator has led market participants to speculate that the Federal Reserve might delay any prospective rate cuts due to persistent inflationary pressures. Amid ongoing geopolitical tensions in the Middle East, …

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Strong NFP Bolsters The Dollar

Market Summary The U.S. labour market’s vigorous expansion, with the Non-Farm Payroll (NFP) report disclosing an impressive 303,000 job additions that exceeded both previous results and projections, accentuated the U.S. economy’s resilience and amplified concerns over enduring high inflation. Consequently, the Dollar Index (DXY) experienced a resurgence as forecasts about the Federal …

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Dollar Buoys By Optimistic NFP Expectation

Market Summary The dollar index (DXY) briefly dipped below the pivotal $104 mark before rebounding in anticipation of the upcoming release of the Non-Farm Payrolls (NFP) report, introducing an element of volatility into the market. Recent positive economic indicators, particularly the ADP non-farm employment change figures, exceeding expectations, have buoyed market sentiment …

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Bullish Gold Trades To All-Time High

Market Summary Gold prices have reached another milestone, currently trading steadily above $2300, as market sentiment leans towards the likelihood of a Federal Reserve interest rate cut this year. Federal Reserve Chair Jerome Powell’s speech yesterday reiterated the central bank’s stance, indicating that it will take more time to assess market conditions …

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Dollar Eases Ahead Of Jerome Powell Speech

Market Summary The U.S. stock market experienced a significant decline yesterday, with all three major indexes dropping by approximately 1%. This downturn occurred as U.S. long-term Treasury yields surged to their highest level since last December, fueled by robust economic data suggesting that the Federal Reserve might postpone interest rate cuts. However, …

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Upbeat PMI Readings Bolsters Dollar

Market Summary The dollar index (DXY) surged by nearly 0.5% in the previous session, propelled by the robust ISM PMI readings surpassing the 50-mark threshold, signalling sustained economic growth in the United States. Federal Reserve Chair Jerome Powell’s relatively dovish remarks last Friday, following the release of the PCE reading within expectations, …

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Dollar Bolsters By Upbeat Economic Data

Market Summary The dollar index (DXY) saw an uptick yesterday amid favourable economic indicators, reinforcing the perception of a robust U.S. economy. Notably, the growth in Durable Goods Orders from -6.9% to 1.4% for February indicates ongoing consumption growth, potentially fueling persistent inflationary pressures. This development has caused a recalibration of market …

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Rate Rumble: RBNZ, BoC, And ECB Take Centre Stage

Wednesday, 10th April 2024, 04:00 – RBNZ Interest Rate Decision The New Zealand central bank maintain its benchmark interest rate at 5.50% as expected during its previous meeting. While there was no surprise of the central bank paused rates, the less hawkish tone was a surprise as 23% of the market surveyed …

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Gold Surges To Record Highs As Gloomy Outlook

Market Summary The US Dollar faces challenges as key employment indicators present a mixed picture, with a disappointing unemployment rate and hourly earnings figures contrasting with a robust non-farm payroll report. The US Unemployment rate and Average Hourly Earnings came in at 3.90% and 0.10%, respectively, both worse than the expected 3.70% …

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Financial Market Await Powell’s Testimony

* Gold prices are on the brink to hit its all time high ahead of Powell’s testimony on Wednesday. * Tokyo Core CPI came in line with the market expectation with an increase from the previous reading fuels hope for a rate hike from BoJ. * BTC surged to above the $68000 …

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Gold Surges To Record Highs As Gloomy Outlook

Market Summary The US Dollar faces challenges as key employment indicators present a mixed picture, with a disappointing unemployment rate and hourly earnings figures contrasting with a robust non-farm payroll report. The US Unemployment rate and Average Hourly Earnings came in at 3.90% and 0.10%, respectively, both worse than the expected 3.70% …

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Financial Market Await Powell’s Testimony

* Gold prices are on the brink to hit its all time high ahead of Powell’s testimony on Wednesday. * Tokyo Core CPI came in line with the market expectation with an increase from the previous reading fuels hope for a rate hike from BoJ. * BTC surged to above the $68000 …

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Poor PMI Reading Weigh On Dollar’s Strength

* Poor ISM PMI readings put pressure on dollar strength. * Traders’ eyes on Tokyo Core CPI due tomorrow to gauge the Yen’s strength.  * OPEC+ will extend oil supply cuts to the second quarter of 2024 to avert a global surplus.   Market Summary Last week’s release of ISM PMI readings, which …

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U.S. PCE Reading Boost Dollar Strength

The much-anticipated U.S. PCE reading, the Federal Reserve’s preferred inflation gauge, was released yesterday, meeting market expectations at 2.4%. The much-anticipated U.S. PCE reading, the Federal Reserve’s preferred inflation gauge, was released yesterday, meeting market expectations at 2.4%. As the market awaits comments from Federal Reserve officials regarding the PCE inflation gauge, …

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Dollar Eases On Low GDP Growth

The Dollar Index underwent considerable volatility, fluctuating within a range of approximately 0.3% in the recent session. The Dollar Index underwent considerable volatility, fluctuating within a range of approximately 0.3% in the recent session. This movement followed a mixed bag of U.S. economic data. On one hand, the last quarter’s U.S. GDP …

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Dollar Stall Ahead Of GDP

The Dollar Index continues to trade within a narrow range, exhibiting minimal change with a marginal increase of 0.02% in the last session The Dollar Index continues to trade within a narrow range, exhibiting minimal change with a marginal increase of 0.02% in the last session. Concurrently, U.S. equity markets find themselves …

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Raving Sentiment In The U.S. Stock Markets

The U.S. stock markets, particularly the Nasdaq, have experienced a significant surge, reaching record high levels, largely driven by Nvidia’s impressive earnings report. The U.S. stock markets, particularly the Nasdaq, have experienced a significant surge, reaching record high levels, largely driven by Nvidia’s impressive earnings report, which signals a positive outlook for …

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Fed’s Tightening Policy Remain, Meeting Minutes Shows

The dollar index exhibited a narrow range of movement following the much-anticipated release of the FOMC meeting minutes yesterday. The dollar index exhibited a narrow range of movement following the much-anticipated release of the FOMC meeting minutes yesterday. As anticipated, board members expressed concerns about the potential risks of cutting rates too …

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Dollar Eases Ahead Of FOMC Meeting Minutes

As the FOMC January meeting minutes loom, the Dollar Index (DXY) is losing steam, struggling to maintain its value above $104. As the Federal Open Market Committee (FOMC) January meeting minutes loom, the Dollar Index (DXY) is losing steam, struggling to maintain its value above $104. Conversely, gold prices are surging due …

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Fed’s Tightening Policy Remain, Meeting Minutes Shows

The dollar index exhibited a narrow range of movement following the much-anticipated release of the FOMC meeting minutes yesterday. The dollar index exhibited a narrow range of movement following the much-anticipated release of the FOMC meeting minutes yesterday. As anticipated, board members expressed concerns about the potential risks of cutting rates too …

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Raving Sentiment in the U.S. Stock Markets

The U.S. stock markets, particularly the Nasdaq, have experienced a significant surge, reaching record high levels, largely driven by Nvidia’s impressive earnings report. The U.S. stock markets, particularly the Nasdaq, have experienced a significant surge, reaching record high levels, largely driven by Nvidia’s impressive earnings report, which signals a positive outlook for …

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Fed Meeting Minutes Align with Expectations; PCE Price Index and GDP in Crosshairs.

Wednesday, 28 Feb, 03:00 – RBNZ Interest Rate Decision In November, the RBNZ maintained its interest rate at 5.50%. Nevertheless, the central bank had earlier indicated a possible rate increase in 2024, citing persistent inflation. Despite the economy technically being in a recession, global markets are bracing for a potential unexpected interest …

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Fed Meeting Minutes Align with Expectations; PCE Price Index and GDP in Crosshairs.

Wednesday, 28 Feb, 03:00 – RBNZ Interest Rate Decision In November, the RBNZ maintained its interest rate at 5.50%. Nevertheless, the central bank had earlier indicated a possible rate increase in 2024, citing persistent inflation. Despite the economy technically being in a recession, global markets are bracing for a potential unexpected interest …

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U.S. PCE Pressures Dollar To Trade Lower

The PCE reading, revealed last Friday, contributed to a decline in the strength of the dollar. The Federal Reserve’s preferred inflation gauge, the PCE reading, revealed last Friday, contributed to a decline in the strength of the dollar. The inflation data, aligning with market expectations at 2.6%, suggests that pricing pressures in …

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Yen Stimulates by Hawkish BoJ meeting minutes

The Japanese Yen gained strength following the release of the Bank of Japan (BoJ) meeting minutes, where discussions about the potential end of the negative rate policy were noted. The Japanese Yen gained strength following the release of the Bank of Japan (BoJ) meeting minutes, where discussions about the potential end of …

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Powell’s Hawkish Statement Stirs Equity Market

Jerome Powell emphasised that the central bank is not in a rush to shift its monetary policy and has ruled out near-term interest rate cuts The Federal Reserve’s interest rate decision aligned with market expectations, maintaining the rate at its current level. However, the notable aspect of the event unfolded in the …

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Powell’s Hawkish Statement Stirs Equity Market

Jerome Powell emphasised that the central bank is not in a rush to shift its monetary policy and has ruled out near-term interest rate cuts The Federal Reserve’s interest rate decision aligned with market expectations, maintaining the rate at its current level. However, the notable aspect of the event unfolded in the …

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U.S. Dollar Eases Ahead Of Nonfarm Payroll

U.S. equity markets staged a rebound fueled by impressive earnings reports, and this positive sentiment spilled over to Asian markets U.S. equity markets staged a rebound fueled by impressive earnings reports, and this positive sentiment spilled over to Asian markets, including Hong Kong and China, which all opened on a positive note. …

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Hang Seng Stock Index Rebounds Strongly

The Hang Seng Index has continued to show strength for the second consecutive session, with the Chinese government support. The Hang Seng Index has continued to show strength for the second consecutive session, with the Chinese government directing the China sovereign fund to provide support to the Chinese equity markets. In contrast, …

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Fed’s Hawkish Tone Buoys The Dollar

Several Fed officials have made consistent statements following last week’s interest rate decision and the disclosure of the Nonfarm Payroll. Several Fed officials have made consistent statements following last week’s interest rate decision and the disclosure of the Nonfarm Payroll. Jerome Powell and his colleagues have emphasised that the strength of the …

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Oil Prices Surge On Geopolitical Uncertainty

Oil prices surged by over 3% yesterday, driven by escalating tensions in the Middle East Oil prices surged by over 3% yesterday, driven by escalating tensions in the Middle East. Ceasefire talks took a gloomy turn as Israeli Prime Minister Benjamin Netanyahu rejected the Gaza deal, deeming it “delusional.” This geopolitical uncertainty …

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Dollar Flat: Investors Await Key Inflation Report

Dollar in consolidation mode ahead of key economic data, investors are advised to continue eyeing on US CPI. The US Dollar adopts a consolidated stance in anticipation of key economic data, particularly US inflation and retail sales figures. Investors are closely monitoring the Consumer Price Index (CPI) for January, expecting a year-on-year …

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U.S. Dollar Edges Higher Ahead Of GDP 

In the financial markets, the U.S. long-term treasury yield held firm above 4.1%, contributing to a slight uptick in the U.S. dollar’s value on the previous day. In the financial markets, the U.S. long-term treasury yield held firm above 4.1%, contributing to a slight uptick in the U.S. dollar’s value on the …

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U.S. Equity Markets Trade At All-Time High

U.S. equity markets saw upward momentum, driven by a rally in tech stocks. The U.S. dollar maintained a sideways trajectory as market participants awaited more cues from the U.S. Personal Consumption Expenditures (PCE) data that is due on Friday. Investors are keenly observing developments that could provide insights into the upcoming monetary …

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Dollar Ease On Profit-Taking Sentiment

The Dollar Index (DXY) experienced a moderation in its bullish momentum due to prevailing profit-taking sentiment in the market. The Dollar Index (DXY), initially bolstered by a positive Consumer Price Index (CPI) reading, experienced a moderation in its bullish momentum due to prevailing profit-taking sentiment in the market. Nevertheless, the steadfastly hawkish …

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Soft Retail Sales Hammers Dollar

The Retail Sales figure disappointed at -0.8%, marking its lowest point since January 2023. This has fueled expectations for a potential rate cut by the Federal Reserve in May. The much-anticipated U.S. Retail Sales figures failed to sustain positive sentiment following the robust Consumer Price Index (CPI) reading unveiled last Tuesday. Despite …

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Yen Stimulates by Hawkish BoJ meeting minutes

The Japanese Yen gained strength following the release of the Bank of Japan (BoJ) meeting minutes, where discussions about the potential end of the negative rate policy were noted. The Japanese Yen gained strength following the release of the Bank of Japan (BoJ) meeting minutes, where discussions about the potential end of …

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U.S. PCE Pressures Dollar To Trade Lower

The PCE reading, revealed last Friday, contributed to a decline in the strength of the dollar. The Federal Reserve’s preferred inflation gauge, the PCE reading, revealed last Friday, contributed to a decline in the strength of the dollar. The inflation data, aligning with market expectations at 2.6%, suggests that pricing pressures in …

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Dollar Poise Ahead Of Interest Rate Decision

The Japanese Yen gained strength following the release of the Bank of Japan (BoJ) meeting minutes, where discussions about the potential end of the negative rate policy were noted. The Japanese Yen gained strength following the release of the Bank of Japan (BoJ) meeting minutes, where discussions about the potential end of …

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U.S. PCE Pressures Dollar to Trade Lower

The PCE reading, revealed last Friday, contributed to a decline in the strength of the dollar. The Federal Reserve’s preferred inflation gauge, the PCE reading, revealed last Friday, contributed to a decline in the strength of the dollar. The inflation data, aligning with market expectations at 2.6%, suggests that pricing pressures in …

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U.S. Equity Markets Trade At All-Time High

U.S. equity markets saw upward momentum, driven by a rally in tech stocks. The U.S. dollar maintained a sideways trajectory as market participants awaited more cues from the U.S. Personal Consumption Expenditures (PCE) data that is due on Friday. Investors are keenly observing developments that could provide insights into the upcoming monetary …

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U.S. Dollar Edges Higher Ahead Of GDP 

In the financial markets, the U.S. long-term treasury yield held firm above 4.1%, contributing to a slight uptick in the U.S. dollar’s value on the previous day. In the financial markets, the U.S. long-term treasury yield held firm above 4.1%, contributing to a slight uptick in the U.S. dollar’s value on the …

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All Eyes On BoJ Interest Rate Decision

The market is dominated by speculation regarding an early rate cut by the Federal Reserve, leading to record highs in U.S. equity markets The market is dominated by speculation regarding an early rate cut by the Federal Reserve, leading to record highs in U.S. equity markets. Despite a recent slide in the …

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Dollar Gain On Upbeat Retail Sales Figure

The U.S. dollar secured its fifth consecutive session of gains, continuing its upward trajectory following a better-than-expected U.S. Retail Sales data. The U.S. dollar secured its fifth consecutive session of gains, continuing its upward trajectory following a better-than-expected U.S. Retail Sales data. Robust economic indicators, including a rebound in the Consumer Price …

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U.S. Government Shutdown Averts Fuels Risk-On Sentiment

The greenback experiences a slight easing as the U.S. Congress approves funding for government spending The U.S. economic data continues to underscore robust performance, contributing to the dollar’s strength. However, the greenback experiences a slight easing as the U.S. Congress approves funding for government spending, alleviating concerns about a potential government shutdown …

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Dollar Strengthen as Fed Rate Cut Speculation Wane

The U.S. dollar maintained its upward trajectory, putting pressure on both gold and equity markets. Despite a relatively dovish speech from Fed governor Christopher Waller, the U.S. dollar maintained its upward trajectory, putting pressure on both gold and equity markets. Wall Street faced selling pressure as early bets on Fed rate cuts …

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Hawkish Fed Meeting Minutes Boosts Dollar

The U.S. dollar strengthened, driven by the Hawkish narrative revealed in the meeting minutes. U.S. equity markets registered a second consecutive decline following the release of the December Federal Reserve meeting minutes. The U.S. central bank signalled an intention to maintain interest rates at a restrictive level for an extended period until …

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Oil Prices Jump As Red Sea Tension Escalates

Oil prices experienced a significant rally as geopolitical tensions heightened in the Red Sea. Oil prices experienced a significant rally, reaching their highest level in 2024, as geopolitical tensions heightened in the Red Sea. Following a retaliatory move by the U.S. against Houthi attacks on ships, airstrikes were launched, escalating tensions and …

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Dollar Strengthen As Sentiment Shift

The U.S. dollar has experienced a resurgence, reaching its highest level in a month, propelled by a revival in U.S. treasury yields. The U.S. dollar has experienced a resurgence, reaching its highest level in a month, propelled by a revival in U.S. treasury yields. This rebound signals a departure from earlier speculation …

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Oil Prices Drop To 4-Month Low

The financial markets experienced a relatively subdued session overnight, as lacking significant catalysts. Investor attention remains focused on the APEC forum The financial markets experienced a relatively subdued session overnight, lacking significant catalysts to drive decisive movements. Investor attention remains focused on the APEC forum, with particular interest in the meeting between …

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Dollar Gains On Upbeat Retail Sales

The U.S. dollar staged a modest recovery following a notable decline on Wednesday. However, the latest U.S. Retail Sales data surpassed expectations, supporting the greenback’s upward nudge. The U.S. dollar staged a modest recovery following a notable decline on Wednesday, spurred by indications of easing inflation from the U.S. CPI report. However, …

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Equity Market Bolstered By Fed Rate Peak Speculation

Recent weak U.S. economic data, hinting at slowed growth and contained inflation, suggests the Federal Reserve might be near the end of its tightening cycle. Recent downbeat economic data from the U.S., which indicates a moderation in economic performance and contained inflation, has led the market to believe that the Federal Reserve …

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Market Muted While Celebrating Thanksgiving

Amidst the Thanksgiving holiday, with the U.S. equity market closed, market observers anticipate subdued trading in the Dollar Index (DXY). Amidst the Thanksgiving holiday, with the U.S. equity market closed, market observers anticipate subdued trading in the Dollar Index (DXY) and gold prices throughout the festive season. Concurrently, the trajectory of oil …

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Dollar Weakens As The Treasury Yield Slumps

U.S. long-term treasury yields have retraced to recent lows downside pressure on the U.S. dollar U.S. long-term treasury yields have retraced to recent lows, adding sparking discussions about the possibility of the Federal Reserve cutting rates next year; this has added downside pressure on the U.S. dollar, with the dollar index reaching …

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Powell’s Hawkish Statement Boosts Dollar

The Fed chief has jointly reaffirmed his determination to combat inflation, which has strengthened the dollar. The Fed chief, along with the Deputy Governor of the BoE and the Chair of ECB, have jointly reaffirmed their determination to combat inflation until it remains consistently within the targeted range. This Hawkish stance has …

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Awaiting The RBNZ And BoC Interest Rate Decisions

The Week Ahead: Week of 10 July (GMT+3) Tuesday, 11 July, 09:00 – EU German CPI (MoM) (Jun) The June preliminary release of the Consumer Price Index (CPI) in Germany increased by 0.3% compared to the previous month. This persistent rise indicates that the country still has a significant challenge ahead in …

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Risk-on Sentiment Heightens Ahead Of Job Data

US equities advanced as the dollar’s vigor abated after Jerome Powell’s dovish tone at the Jackson Hole Symposium. US equities advanced as the dollar’s vigor abated after assimilating Jerome Powell’s Jackson Hole Symposium discourse. Powell’s subtly dovish tone vowed meticulous inflation management to foster risk appetite. Speculation also swirled around a softer …

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The US Housing Market Will Be In Focus In The Upcoming Week

The Week Ahead: Week of 17 July (GMT+3) Tuesday, 18 July, 15:30 – US Retail Sales (MoM) (Jun) Contrary to market expectations of a -0.1% rate, May’s US Retail Sales exceeded forecast expectations with a rate of 0.3%. This indicates that consumer spending remains resilient, even in the face of rising inflation …

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Softer Job Data Hammers Dollar

The decline in U.S. JOLTs Job Openings signals a cooling labor market, leading to a significant setback of nearly 5% for the dollar. In an unexpected turn, the U.S. JOLTs Job Openings report displayed a decline from its previous reading of 9.17 million to the current figure of 8.83 million, signalling a …

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Dollar Surge On Above Expectation Job Data

Dollar strengthened as U.S. economic data including PCE and initial Jobless Claims better than than market expectation. The U.S. equity market’s winning streak ended as the Dow Jones closed about 0.5% lower due to mixed economic data. The Fed’s preferred inflation measure, the PCE index, matched market forecasts at 4.2%, while Initial …

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Insights on Major Country Economies and Inflation

The Week Ahead: Week of 7 August (GMT+3) Tuesday, 8 August, 09:00 – EU German CPI (MoM) (Jul) In June, inflation rebounded, rising by 0.3% month-on-month, matching the preliminary figure. Currently, the market is anticipating the preliminary release of Germany’s Consumer Price Index (CPI) for July to stay at 0.3%. Following the …

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Anticipated Economic Data For The Upcoming Week

The Week Ahead: Week of 28 August (GMT+3) Tuesday, 29 August, 17:00 – US JOLTs Job Openings (Jul) The market had anticipated a June reading of 9.610 million, but the actual figure fell slightly short of expectations, registering at 9.582 million. Given the current tight labour market conditions, this reading is seen …

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Global Country Interest Rates And GDP Trends Analyzed

The Week Ahead: Week of 4 September (GMT+3) Tuesday, 5 September, 07:30 – AU RBA Interest Rate Decision (Sep) With inflation slowing from 5.4%in June to 4.9% in July, the RBA has opted to maintain its interest rate at 4.1%. This decision allows the central bank to evaluate the effects of previous …

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Powell’s Hawkish Statement Boosts Dollar

The Fed chief has jointly reaffirmed his determination to combat inflation, which has strengthened the dollar. The Fed chief, along with the Deputy Governor of the BoE and the Chair of ECB, have jointly reaffirmed their determination to combat inflation until it remains consistently within the targeted range. This Hawkish stance has …

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Risk-on Sentiment Heightens Ahead Of Job Data

US equities advanced as the dollar’s vigor abated after Jerome Powell’s dovish tone at the Jackson Hole Symposium. US equities advanced as the dollar’s vigor abated after assimilating Jerome Powell’s Jackson Hole Symposium discourse. Powell’s subtly dovish tone vowed meticulous inflation management to foster risk appetite. Speculation also swirled around a softer …

Read More

Risk-on Sentiment Heightens Ahead Of Job Data

US equities advanced as the dollar’s vigor abated after Jerome Powell’s dovish tone at the Jackson Hole Symposium. US equities advanced as the dollar’s vigor abated after assimilating Jerome Powell’s Jackson Hole Symposium discourse. Powell’s subtly dovish tone vowed meticulous inflation management to foster risk appetite. Speculation also swirled around a softer …

Read More

Softer Job Data Hammers Dollar

The decline in U.S. JOLTs Job Openings signals a cooling labor market, leading to a significant setback of nearly 5% for the dollar. In an unexpected turn, the U.S. JOLTs Job Openings report displayed a decline from its previous reading of 9.17 million to the current figure of 8.83 million, signalling a …

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Dollar Surge on Above Expectation Job Data

Dollar strengthened as U.S. economic data including PCE and initial Jobless Claims better than than market expectation. The U.S. equity market’s winning streak ended as the Dow Jones closed about 0.5% lower due to mixed economic data. The Fed’s preferred inflation measure, the PCE index, matched market forecasts at 4.2%, while Initial …

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Market Stays Calm Ahead of Fed’s Rate Announcement

Investors await the Fed’s interest rate decision, to be released today at 21:00 (GMT+3). If the rate is raised from 5.25% to 5.5%, it will mark the highest level in 22 years. Investors’ unwavering attention is fixed on the Fed’s interest rate decision, eagerly awaiting its release later today. With market speculations …

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BoJ Monetary Policy Remains Dovish

Japanese yen weakens as officials state no immediate plan to modify ultra-loose monetary policy. This week, major central bank decisions will be in focus, including the Fed’s rate announcement on Wednesday and the ECB’s on the following day. Investors will closely watch the CB Consumer Confidence released on Tuesday for insights into …

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Upbeat Job Data Encourages Dollar Surge

U.S. dollar surged more than 0.5% triggered by optimistic job data in the U.S. Asian equity markets faced declines, influenced by the U.S. equity market’s disappointing earnings results. Last night, Nasdaq experienced a substantial drop of over 2%, marking its most significant single-day decline since March. Conversely, the U.S. dollar displayed strength, …

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Strong Earnings Boost Equities, Gold Surges On Downbeat Data

Strong quarter results from US banks spark optimism in US equity market. Strong quarterly results from Wall Street banks, Microsoft, and other major corporations fueled the US equity market’s upward momentum, while lacklustre economic data led to a dip in US treasury yields, signalling expectations of a more cautious stance by the …

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Market Calm Before U.S. Retail Sales Releases

The financial market was relatively calm last night ahead of the release of U.S. retail sales data scheduled for later at 15:30 (GMT+3). The financial market experienced a relatively calm session last night as investors awaited the release of U.S. retail sales data scheduled for later today (18th July). Major currency pairs …

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China’s GDP Misses Expectation, Hammers Oil Prices

The latest release of China’s second-quarter GDP has fallen short of market expectations which has exerted upward pressure on oil prices. Investors are wagering that the upcoming rate hike in July will mark the end of the tightening cycle, yet Federal Reserve officials are keeping their options open for a potential increase …

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Japanese Yen Strengthen With Heighten Recession Risk

Major central banks tightening policies, boosts Japanese Yen. The Japanese Yen has reached its highest level in a month, surpassing the 140 mark against the U.S. dollar. This surge is attributed to the growing concerns of a global economic downturn due to major central banks tightening their monetary policies to combat persistent …

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Fed Officials Emphasise Higher Interest Rate Needed

Markets are now assessing the hawkish outlook against visibly cooling inflation Several Federal Reserve officials have expressed the view that interest rates need to be raised further this year in order to bring inflation back to the targeted rate of 2%. Despite this hawkish sentiment from the Fed, the market is inclined …

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Awaiting the RBNZ and BoC Interest Rate Decisions

The Week Ahead: Week of 10 July (GMT+3) Tuesday, 11 July, 09:00 – EU German CPI (MoM) (Jun) The June preliminary release of the Consumer Price Index (CPI) in Germany increased by 0.3% compared to the previous month. This persistent rise indicates that the country still has a significant challenge ahead in …

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Fed June Minutes Reveal Hawkish Stance

FOMC meeting minutes spark demand on the US Dollar Last night’s release of the FOMC meeting minutes revealed a divergence of opinions among Fed officials, with the majority committed to further rate hikes in their ongoing battle against persistent inflation. The Fed is expected to continue its rate hike cycle this month, …

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RBA Holding The Interest Rate Unchanged

Market participants remained relatively calm, eye on several crucial data including Non-Farm Payroll (NFP) The market was surprised when the RBA decided to keep rates unchanged yesterday. The Australian central bank emphasized a data-dependent strategy and indicated potential future tightening if necessary. Oil prices slightly increased as Saudi Arabia unilaterally reduced production, …

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Aussie Dollar Gains Ahead Of RBA Rate Decision

The disappointed PMI reading indicates a lack of optimism in the manufacturing sector Investors await the RBA’s interest rate decision, expecting a 25 bps rate hike. Despite Australia’s CPI dropping to 5.6%, it remains distant from the 2% target. Meanwhile, the Purchasing Managers’ Index (PMI) readings in both the United States and …

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U.S. PCE Shows Inflation Moderating

Cooling inflation has given hopes to the equity markets and weighed on the dollar The US Dollar has strengthened significantly as economic data exceeded expectations, bolstering confidence in the currency. Furthermore, the robust performance of the banking sector has ignited positive momentum in the US equity market. The Federal Reserve’s stress test …

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Resilient US Dollar And Robust Banks: Key Market Highlights

Solid US economic data continue to boost demand on US Dollar. The US Dollar has gained strength as economic data surpassed expectations. Meanwhile, the robust banking sector sparked bullish momentum in the US equity market. The Federal Reserve’s stress test results showcased the resilience of major banks, including Wells Fargo, JPMorgan Chase, …

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Equity Markets Positive After Russia Mutiny Resolved

Geopolitical tensions eased following Prigozhin’s troops retreat from Moscow as both parties had reached consensus on certain deals. Political instability in Russia has abated as Prigozhin’s troops retreat from Moscow, leading to a positive response in equity markets, particularly the Nasdaq, which rose over 1%. Oil and gold prices declined as the …

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High Inflation Across Multiple Countries: A Focus On Upcoming Significant Data

The Week Ahead: Week of 26 June (GMT+3) Tuesday, 27 June, 17:00 – US CB Consumer Confidence (Jun) Ahead of the anticipated release of the U.S. CB Consumer Confidence data, the University of Michigan has published the Consumer Sentiment Index for the United States. It shows a monthly increase of 7.9% from …

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Powell Signals Higher Rates

On the first day of Jerome Powell’s two-day testimony before the House, the Federal Reserve Chair delivered a semi-annual monetary policy report. The equity markets and the dollar both experienced declines as Powell took a hawkish stance, stating that the central bank would need to raise interest rates further to curtail U.S. …

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Dollar Stands Pat Ahead Of Powell’s Testimony

Fed Chair Jerome Powell is due to give his twice-yearly testimony before congress today The market is exhibiting cautious sentiment as it edged lower in anticipation of Fed Chair Jerome Powell delivering his semi-annual monetary policy report before the House today (21st June). Investors closely scrutinise this two-day testimony to gain insights …

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Blinken Potentially Meeting President Xi

Improved relationships between the US and China could potentially lead to the equities markets surging Equities in the U.S. contracted last Friday after a bullish run in the past week with Nasdaq up by more than 3%. Notably, U.S. Secretary of State Anthony Blinken’s visit to China, including meetings with top diplomats …

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Market Expected To Calm As Holidays Approach

The Week Ahead: Week Of 19 June (GMT+3) Monday, 19 June, All Day – US  Juneteenth During the upcoming US holiday, the market is expected to be relatively calm, and it may be a suitable time for investors to take a break. Wednesday, 21 June, 9:00 – UK CPI (YoY) (May) In …

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Focus On The Upcoming Fed Interest Rate Decision

The Week Ahead: Week of 12 June (GMT+3) Tuesday, 13 June, 15:30 – US CPI (MoM) (May) According to the previous Consumer Price Index (CPI), the United States witnessed a modest increase of 0.4% compared to last month’s 0.1%. The upcoming inflation data for May is anticipated to reveal a slight cooling …

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Is The Fed Going To Raise Interest Rates In June?

Despite the prevailing risk of an economic downturn in Australia, the RBA surprised the market by adding another 25 bps to its interest rate, vowing to bring the inflation rate down to 2%. The Canadian central bank followed the footstep of RBA and added 25 bps to its interest rate, causing the …

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Is The Fed Skipping The June Rate Hike?

Over 70% of punters are now betting on a hike pause at the upcoming FOMC meeting The focus of attention is currently directed towards the U.S. Senate, where the passage of the debt limit is being closely observed. Concurrently, senators are engaged in debates concerning 11 amendments to the bill. The value …

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Debt Limit Bill Vote Passes The House

A Bipartisan Agreement To Suspend The Debt Ceiling Is Now Awaiting Approval From The U.S. Senate The House of Representatives has successfully passed a debt ceiling deal to prevent a potentially catastrophic event. However, the process is not yet complete as the bill now awaits approval from the Senate, where not all …

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Debt-Limit Bill Clears 1st Hurdle

Uncertainty Remains In The Markets As Both Political Parties In The U.S. Continue With Their Discourse Around The Debt Ceiling Issue The bill regarding the U.S. debt limit has successfully cleared its first obstacle at the House Rules Committee, but it now faces another challenge in Congress. Ahead of the bill’s debate …

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U.S. Debt Ceiling Remains At An Impasse

The Biden-McCarthy meeting on the debt-limit bill has yet to yield any deal to avert a catastrophic U.S. default, with U.S. Treasury secretary warning that the country will run out of cash in June. Market sentiment worsened as the White House has no more meetings planned; and gold prices have rebounded due …

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Biden Confident On Debt Ceiling Bill

President Biden is confident in reaching a bipartisan agreement with congressional leaders to elevate the debt ceiling, effectively averting an unprecedented default situation for the United States. This development has sparked a wave of optimism, prompting the dollar to trade higher, while the safe haven commodity gold languishes amid the surge in …

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Biden-McCarthy Meeting Postponed

Investor sentiment has taken a hit in the market following the postponement of a meeting between U.S. President Joe Biden and the House Speaker to address the looming debt ceiling crisis. The Biden administration is under pressure to pass the debt ceiling bill by June to avoid a potential default on the …

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Markets Calm Before U.S. Inflation Data

As investors await the U.S. Consumer Price Index (CPI) and monitor the development of the U.S. debt ceiling, the markets remain subdued. Most of the asset classes saw little change overnight ahead of the U.S. CPI, which is due to release later today (10th May). On the other hand, the market is …

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Gold Prices Surge as Recession Looms

Dollar weakness has leant support to the precious metal, which has climbed back to the near-2000 mark U.S. equities took a hit as concerns over corporate earnings weighed heavily on investor sentiment, a sentiment that spilled over into Asian markets. The market’s risk appetite has contracted due to fears of a possible …

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Asian Shares Dip Amid Cautious Trading

The VIX dipped to its lowest level in over a year as equities trade sideways ahead of the Fed interest rate decision Asian shares traded lower, and U.S. equity futures fell as investors remained cautious after Wall Street closed with little change. The CBOE VIX volatility index hit its lowest level in …

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Dollar Struggles as Investors Remain Sceptical of Fed’s Hawkish Tone

The US Dollar continues to struggle as uncertainty over US monetary policy lingers in the global financial market. Despite hawkish comments from Atlanta Fed President Raphael Bostic and James Bullard regarding the need for rate hikes to combat inflation, market participants remain sceptical as the recent inflation data from the US region …

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China’s GDP Shows Solid Economic Recovery

Economic growth in the world’s second-largest economy will be bullish for oil prices China’s freshly released economic data has shown resilient growth in the country compared to the previous quarter. China’s GDP in the first quarter surged to 2.2% from the previous quarter’s 0%, a favourable sign that could potentially stimulate higher …

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Markets Cautious Ahead of Earnings Season

Equities are muted as markets await the expected volatility of the earnings season US index futures cautiously climbed during the Asian market session, signalling investors’ apprehension ahead of the upcoming earnings season. Against the backdrop of growing concerns over economic slowdown and the possibility of further rate hikes, market volatility is expected …

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US Dollar Dips as Inflation Falls Short. 

US Treasury yields and the Greenback dipped as investors recalibrated their expectations for rate hikes following the release of March’s Consumer Price Index (CPI), which came in below the market consensus. This unexpected dip in inflation triggered a surge in the prices of non-yielding assets such as gold and crude oil, as …

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Gold Surges Past 2010 as Inflation Shows Signs of Slowing

On Wednesday, 12 April, the U.S. CPI data was released, showing that March’s headline inflation in the U.S. slowed more than anticipated, with the year-on-year number showing a drop from 6.0% in February to 5.0% in March; lower than the expected 5.2%. The monthly rate decreased to 0.1% from 0.4%, which was …

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Markets Calm Before Inflation Data

Economists project the upcoming U.S. CPI figures will galvanise the markets in either direction depending on its performance U.S. equity markets have traded in low volatility for the past few sessions, but economists project the lull period will be broken after the U.S. CPI is released later today. A softer reading from …

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Equities Market Edge Higher as Risk-On Sentiment Escalates

The market has a higher risk tolerance, with U.S. equity markets edging higher and the dollar extending its gain for the 2nd straight session. On the other hand, notwithstanding a dovish stance from the newly appointed BoJ governor, economists projected that the ultra-loose monetary policy is unsustainable with the rising inflation in …

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Markets Muted While Celebrating Easter

Last Friday, U.S. economic data gave mixed signals, leaving the markets clueless, especially on the upcoming Fed’s monetary policy. The Non-Farm Payroll decelerated to 236k but is in line with the market consensus. However, the country recorded a record low in the unemployment rate, showing that the labour market remains hot. Most …

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Is a Recession Looming?

Recession fears have escalated in the markets, especially after the ADP Nonfarm payroll was released yesterday. The dollar index traded higher, and gold prices poised at a yearly high as safe-haven assets are being sought after by investors amid a recession looming with a lower-than-expected U.S. job report. On top of that, …

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Oil Prices Surges With OPEC+ Surprise Supply Cuts 

Oil prices surged by more than 8%, with WTI crude trading above $81 for the first time since January after an unexpected announcement from OPEC+ to cut crude supply to tighten the market. The oil allies announced cutting more than 1 million barrels of oil per day, with Saudi Arabia leading the …

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China Equity Market Rallies with Alibaba Revamp

Chinese stock indices, including the Hang Seng Index, rallied as Alibaba said it would split the company into 6 units that would potentially be listed individually. This reflects a loosening attitude from the Chinese government toward the technology companies after the long crackdown from Beijing. On the other hand, the fresh Australian …

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Markets Put Less Weight On Banking Crisis

Focus has shifted back to inflation and interest rates as the banking crisis shows signs of easing Equity markets advanced and major currencies fluctuated in narrow ranges in the last session. Easing in the banking crisis and perceived lower risk of recession spurred the equity market to trade higher while modest rate …

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Equities Markets Slide as Banking Sector Concern Still Intact. 

Wall Street was hindered by the banking sector and slumped after investors digested the comment from Janet Yellen, U.S. Treasury Secretary on Wednesday’s hearing. However, Yellen attempted to alleviate market concerns during a subsequent hearing on Thursday, promising that policymakers would take further action to safeguard bank deposits if necessary. Meanwhile, Japan’s …

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Fed is not Pausing Rate Hike

Jerome Powell delivered a smaller size of rate hike of 25 bps which is in line with the market consensus; however, the market was hit by double assail with U.S. major indexes dropping by more than 1% and the dollar traded below $103. Firstly, Powell revealed that the Fed considered pausing the …

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Markets Risk-on Ahead of Fed’s Interest Rate Decision

Wall Street closed high and gold prices retraced as the fears over the banking sector crisis abated; the dollar index remains calm before the Fed’s interest rate decision announcement, which will be made later today (22nd March). However, investors are starting to discuss the banking turmoil as aftermath of central banks’ frenetic …

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FOMC Minutes Show Fight Against Inflation Will Continue, Soft Landing Possible

An increasingly risk-off market has been proved right as the U.S. Federal Open Market Committee (FOMC) has released the minutes of its 31 Jan – 1 Feb meeting, signalling the Fed’s resolve to continue the fight against inflation. This includes further hikes, although almost all members of the FOMC supported a slowing …

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Cheap Consumer Loans Might Backfire in China

President Xi Jinping’s effort to stimulate China’s economy through increased consumer spending is facing a new challenge as citizens misuse cheap consumer loans. Borrowers are using low-interest loans to prepay mortgages or invest in stocks, instead of buying goods as intended. This practice, which is prohibited by regulators, threatens to undermine Beijing’s …

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Crude Oil Prices Defy Inventory Build

On Wednesday, the U.S Energy Information Administration reported an increase in crude inventories by 2.42 million barrels, close to the market expectations of 2.46 millions barrels. This is the third consecutive crude inventory build, coming after an outsized 4.14 million last week. This makes it a rough 4% above the 5-year average …

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What Are Government Bonds And How To Trade Them?

Understand More About Government Bonds And How To Trade Them Government bonds are widely considered as one of the least risky investments available to many investors. Read this article and learn all about government bonds including what they are, how they work and how to take a position in them through our …

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Ahead of NFP, Fed Implements Lowest Rate Hike in 10 Months

On Wednesday, the U.S Federal Reserve released its monetary policy decision for February 2023, raising the benchmark interest rate by 25 points at the conclusion of the FOMC meeting, as widely expected by the markets. This brings the target range of 4.5% to 4.75%, making it the highest since October 2007. This …

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Bank of Japan’s Surprise Bond Cap Raise

Japan’s outgoing central bank governor Haruhiko Kuroda surprised markets with an increase of 25 basis points on the cap for the BoJ’s 10-year yields, effectively doubling the limit. The surprise has caught economists by surprise in light of the BoJ’s extreme dovishness even as the rest of the world embraces tightening. While …

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Outlook on Crude Positive for Early 2023 on China Reopening and OPEC+ Cuts

U.S. crude oil stockpiles fell much more than expected, according to the data of the American Petroleum Institute (API). The weekly report released by the organisation reported a draw of nearly 3.1 million barrels of crude oil for the week ending in December 16th. Compared to a build up of more than …

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Scaled-Down 50bps Hike From Fed Belies Hawkish Outlook

On Wednesday, 14 December, the U.S. Federal Reserve announced its last rate hike of the year – a 50-basis point increase to the Fed fund rate, well in line with the market’s expectations. This brings the Fed benchmark rate to 4.25% – 4.5%, the highest in 15 years. While a dovish step …

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Gold Struggles to Find Direction even as China Eases Covid Restrictions

China has announced that it will be lifting its strictest covid policies, including being forced to quarantine in state facilities and the need to test before entering most venues. The easing has been released in a series of new guidelines that include a ban on blocking fire exits, encouraging vaccinations among the …

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U.S. Midterm Elections Ahead

What You Need to Know Asian markets are on the upsurge, especially the Hong Kong market, which climbed more than 11% in November. The Sterling will suffer as the BoE has turned its focus from inflation to saving its negative economic outlook, which will drive the market to sell off more pounds. …

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U.S. Shares Tumble on Hawkish Fed Signals

On Wednesday, 2 November, the US Federal Reserve implemented its fourth mega hike, raising interest rates by 75 basis points, or 0.75%, in its continuing fight against high inflation. This brings the current Fed’s benchmark rate to 3.75% – 4%, with rates expected to hit a ceiling at 4.5% – 4.75% in …

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What a New Prime Minister Spells for the Pound’s Future

On Tuesday, 25 October, Rishi Sunak was sworn in as the new Prime Minister of the UK. The 42-year-old is the third UK PM in 7 weeks, replacing Liz Truss, who was PM for the whole of 44 days. Sunak comes at a time of great financial instability for the UK, with …

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What Are The Best Trading Hours In Forex Markets

Just as with most forms of investing and trading, taking note of the trading hours in the forex market is everything in Forex trading. Grasping the right hours in the day to trade, knowing the dates of important economic announcements, and just timing your trades correctly will give you an edge, and …

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Gold Remains Downbeat as Treasury Yields Hit Decade High

Recession fears are plaguing the markets more strongly than ever. On Wednesday, US Treasury yields hit a 14-year high, with the 10-year note hitting as high as 4.153% as of writing – the highest since 2008’s recession. Meanwhile, the 2-year yield rose by 13 basis points to 4.57%. More importantly, the 3-month …

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Fed Inflation Fears and Weak Demand Outlook Weigh on Crude

On Wednesday, 12 October (GMT+3), the US Energy Information Administration (EIA) released its Short-Term Energy Outlook (SETO). Forecasts for 2023 revealed an average global oil production of 100.7 million barrels a day – down 600,000 from September’s forecast and reflecting OPEC+’s announced cuts.  Oil consumption for 2023 is forecasted to be 101 …

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FOMC Minutes Reveals Fed’s Inflation Fears

On Wednesday, 17 August (GMT+3), the Federal Open Market Committee (FOMC) released the minutes for its 26-27 July meeting. In it, the Fed has finally decided to take a step back to assess the effects of aggressive monetary tightening. For the past few rate hikes, which saw increases as high as 75 …

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Will JOLTs Data Foreshadow Friday’s NFP?

On Tuesday evening (GMT+3), the US JOLTs Job Openings data was released, showing 10.689 million job openings, lower than the expected 11 million and the previous month’s value of 11.303 million. This is also the lowest in 9 months.  Robert Frick, corporate economist at Navy Federal Credit Union, notes: “Fewer openings likely …

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Will the ECB Hike Rates by 25 or 50 Points?

At 15:15 (GMT+3) on Wednesday, the European Central Bank will be making its interest rate decision. The central bank is expected to hike rates, the first time it will do so in 11 years. For the past 8 years, interest rates in the EU have been negative – but rampaging inflation has …

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Musk Kills Twitter Deal

Elon Musk has pulled out of a protracted and tumultuous bid to purchase social media platform Twitter, making the announcement through an SEC filing. The deal was first proposed by Musk after he revealed that he had accumulated over 9% of Twitter earlier this year. Should the deal have gone through, Musk …

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Oil Rises Despite EIA Crude Oil Inventory Increase

On Wednesday evening (GMT+3), the US EIA Crude Oil Inventories data was released. For the Week of 3 June, US inventories of crude increased by 2.025 million barrels. This is compared to the forecasted draw of 1.917 million, and the previous week’s draw of 5.068 million.  Meanwhile, distillate inventories saw a rise …

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Singapore Increasingly Seen as Safe Haven For Chinese Wealth

As Beijing’s crackdown on the country’s wealthy continues under president Xi Jinping’s “common prosperity” policy, an increasing number of China’s affluent are moving their money to Singapore and setting up family offices. Singapore’s attractiveness stems from its large Chinese-speaking population, lack of wealth tax, and relative proximity. The trend started in 2019 …

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Oil Prices Cool as UAE Pledges to Open the Taps

After a month of rallying in response to the Russia-Ukraine conflict, oil prices have finally cooled at the combined news of Ukraine withdrawing its NATO application; and the UAE saying that it will increase oil production while encouraging its allies in the Organization of the Petroleum Exporting Countries (OPEC) to do the …

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Key Economic Announcements

Economic announcements, or new events, are a widely followed aspect of trading due to their influence on monetary as well as political policy. Therefore, it is important to know which announcements are going to create the most impact and volatility so as to take advantage of their movements. Here are some of …

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Consumer and Producer Price Indices

The Consumer Price Index (CPI) and Producer Price Index (PPI) are inflationary measures used to determine whether prices for goods and services are rising (inflation), falling (deflation when below zero or disinflation when falling but still above zero), or staying the same (since there is no particular term for this, let’s just …

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