Author: FX
GBPUSD dailyFollowing the Bank of England’s decision to maintain policy rates, Credit Agricole highlights the GBP’s emerging status as a high-yield currency, supported by the potential for future easing.Key Points:BoE Decision and Forward Guidance:The BoE kept rates unchanged in September while signaling future gradual easing. Only one member dissented for a 25bp cut, indicating a cautious approach.Gilt Holdings Reduction:The BoE plans to reduce gilt holdings by GBP 100 billion over the next year, reflecting a commitment to monetary tightening despite potential easing ahead.Market Reactions:UK rates markets have adjusted easing bets for November and December 2024, suggesting a slightly less dovish…
The US Dollar further consolidates on Friday after weakening further on Thursday. Traders have devalued the US Dollar a touch, amidst the Bank of Japan and Bank of England’s decisions to keep rates on hold. The US Dollar Index falls outside its tight bandwidth, a sign that could dive lower next week. The US Dollar (USD) trades broadly steady on Friday after Thursday’s sharp decline, when traders revalued the Greenback after the US Federal Reserve (Fed) joined the European Central Bank (ECB) and several others by starting its interest-rate cutting cycle. Quite a different picture comes from the Bank of England…
It is better to remain restrictive for longerWe can cut more aggressively later once inflation risk is containedThere appears to be more upside risks to inflation in the UKUK has seen more of an impact on services pricesContemplated to vote to cut rates in August but wanted to avoid “boogie-dance” on ratesShe also adds that she personally has a more guarded view on starting the rate cut cycle. Adding that she agrees with the view that inflation could stay above target for an extended period. It just means she won’t be siding with a rate cut, if conditions are to…
Gold price climbs further beyond the $2,600, hitting fresh record peak amid a weaker US Dollar. Bets for more rate cuts by the Fed drag the US bond yields lower and undermine the Greenback. Worries about the US/China economic outlook and geopolitical risks also benefit the XAU/USD. Gold price (XAU/USD) gains positive traction for the second successive day on Friday and advances to a fresh record high, beyond the $2,600 mark during the early European session. The Federal Reserve’s (Fed) oversized interest rate cut on Wednesday was accompanied by a projection for another 50 basis points fall in borrowing costs…
Christophe LEHENAFF Retail sales in the United Kingdom increased 1% in August 2024 over the previous month, higher than consensus estimates of 0.4%. The August number rose from July’s 0.7%. ETFs: (FXB), (EWU), (FKU), (EWUS), (FLGB). Currency: (GBP:USD) Source link
By Ahmad Ghaddar, Trixie Yap and Shariq Khan LONDON/SINGAPORE/NEW YORK (Reuters) – Oil refiners in Asia, Europe and the United States are facing a drop in profitability to multi-year lows, marking a downturn for an industry that had enjoyed surging returns post-pandemic and underlining the extent of the current slowdown in global demand. The weakness is a further sign of soft consumer and industrial demand, especially in China, because of slowing economic growth and rising penetration of electric vehicles. New refineries coming on stream in Africa, the Middle East and Asia have added to the downward pressure. Refiners such as…
Risk-taking and anti-USD sentiment are extending bitcoin’s gains against the U.S. dollar! How high will BTC/USD fly before the OG crypto goes back to its longer-term downtrend? If the downtrend picks up, it could do so at these levels: Bitcoin (BTC/USD) Daily Chart by TradingView Unless you’ve been too busy binging on the 2024 Emmy Awards winners, you should know that the Fed recently cut its interest rates by 50 basis points, a bit higher than the 25-basis-point cut that the markets were thinking weeks ago. FOMC members also hinted at future rate cuts this year and the next, which…
It was another busy day as traders digested the Fed’s latest rate cut, BOE’s decision to stand pat, better-than-expected U.S. data, and developing stories in the Middle East. Which assets took advantage of Thursday’s headlines? We’re discussing them below! Headlines: New Zealand GDP contracted 0.2% in Q2 2024 (-0.4% forecast, previous reading downgraded from 0.2% to 0.1%) Australia’s August labor market data showed strength despite high interest rates Switzerland trade surplus shrank from 4.1B CHF to 3.9B CHF in August, the smallest since April, as exports (-1.2% m/m) fell faster than imports (-0.1% m/m) SECO continues to predict a 1.2%…
China state banks buying USD/CNY (selling onshore yuan) according to unnamed sources This article was written by Eamonn Sheridan at www.forexlive.com. Source link
In an 8-1 vote, Bank of England (BOE) members voted to keep their official bank rate at 5.00% in September. Swati Dhingra, a known dovish member, voted for another 25bps rate cut following a similar reduction in August. The voting result is much less “finely balanced” than the 5-4 decision to cut rates last month and the 7-2 score that markets had expected this time. To further reduce liquidity in the financial system, Monetary Policy Committee (MPC) members also voted unanimously to keep reducing its U.K. government bond (gilt) holdings by £100B over the next 12 months to September 2025.…