Author: FX

Bitcoin has been lagging in the recovery from the broad market rout in the start of August, in part because of worries about the sale of Mt. Gox bitcoin. But it’s making up for lost time today, rallying nearly 5% and trading at a session high.The daily chart has a nice look as it breaks out of two weeks of consolidation to the upside with not much standing in the way of $68,000.Bitcoin daily Source link

Walmart CEO Doug McMillonThe great stock market turnaround in August was impressive in many ways but when I take a step back, there was one big question being asked and answered: Is the Fed behind the curve?Within that question is a set of assumptions about the US economy and if you look at the economic data, there was cause for concern. The ISM services index in June fell to the lowest since 2020, global commodity prices have been falling and US unemployment has been rising.A big boost for US stocks came on strong retail sales data but when I survey…

High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading and seek advice from an independent financial or tax advisor if you have any questions. Advisory warning: FOREXLIVE™ is not an investment advisor, FOREXLIVE™ provides references and…

Almost everyone on the committee thinks inflation is coming down and that there will be multiple cuts over calendar 2024 and 2025Speed and size of cuts to be determined by economic dataNeutral rates are ‘far from where we are’There is some question on the strength of the consumer, that said if you look at the spending data, it’s been fairly robustHe’s been talking all day, nothing new here. This article was written by Adam Button at www.forexlive.com. Source link

DXY Index declines as investors favor riskier assets following Powell’s dovish speech. Powell hinted that the economic outlook is coming closer to the Fed’s goal. Markets have already priced in a September cut. The US Dollar (USD), measured by the US Dollar Index (DXY), resumed its decline on Friday, falling from below the 101.00 level due to a shift toward riskier investments. This shift was influenced by the dovish tone of US Federal Reserve (Fed) Chairman Jerome Powell’s speech at Jackson Hole. Despite concerns about decelerating job growth, Fed officials, including Powell, maintain positive views on the US labor market.…

Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee noted on Friday that the Fed has seen broad success in achieving its goals, and that inflation should continue to head towards the US central bank’s target range. Key highlights I support the Fed’s new focus on the job markets. Inflation is on a path to 2%. Policy is now at its tightest point of the entire hike cycle. Everything we wanted to happen to get rates down, has happened. By almost all measures, the job market is cooling. I don’t think inflation will get stuck above 2%.   Source link

Fed Chair Powell signaled at Jackson Hole that an interest rate cut is imminent. Most of the market expects a 25bps cut, but a third still says Powell will begin with 50 bps. Powell says that labor market no longer a source of inflation. Goldman nears all-time high at $517.26, but entry points are aplenty.   Goldman Sachs (GS) gained alongside US indices on Friday after the market took Federal Reserve (Fed) Chair Jerome Powell’s words to heart regarding interest rate cuts at the September 18 meeting. Shares of the esteemed investment bank added nearly 3% to reach an intraday high…

The Dow Jones rallied to 41,200.00 after Fed officials agreed its time to cut rates. Equities have immediately moved on to guessing how many rate cuts in 2024. Rate markets see 100 bps in cuts by 2024 year-end. The Dow Jones Industrial Average (DJIA) lurched over 400 points higher on Friday after the Federal Reserve (Fed) gave a nod of the head to upcoming rate cuts. Several Fed policymakers appeared before markets to signal a long-awaited shift in policy stance that markets have been rallying for since at least last December, when investors had initially priced in an eye-watering six…

Bank of America highlights that historically, the US Dollar Index (DXY) tends to rise from August through US election day in November, suggesting potential USD strength leading into the upcoming election.Key Points:Seasonal Trends: Since 1970, the DXY typically shows strength in August, weakness from September to mid-October, and then regains strength into late November before declining towards year-end. This trend has been consistent, with the DXY often peaking by August.Impact of the Euro: Since the euro began trading in 1999, the DXY has shown a tendency to rise from early August through late November, with a subsequent decline into year-end.Election…

Federal Reserve (Fed) Bank of Philadelphia Patrick Harker hit newswires on Friday, noting that Fed moves on interest rates need to be “methodical”, telegraphing that policymakers are targeting a series of cuts through the rest of 2024 as the US central bank gears up for a dovish pivot. Key highlights We need to start moving rates down. The Fed should start the process of cuts, and keep moving. I don’t see large outsize risk of labor deterioration. In our view, the jobless rate will not peak above 5%. Contacts urging the Fed not to stop and start rate cuts. The…