Author: FX

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…

The main highlight of the day for North American traders comes at 10 am ET with Powell’s speech at Jackson Hole (US new home sales are due at the same time). Before that, Canada gets a moment in the spotlight with June retail sales at 8:30 am ET.The consensus is -0.3%, which was the preliminary reading. A big revision to that would be notable but if not, the focus will be on the advance July reading. RBC’s consumer tracker — which relies on credit card data — showed a decline of 0.6% so that’s a decent baseline for what’s expected,…

Forex trading is an after-work (or maybe during work) hobby and happens if and when you have enough strength to keep your eyes open. You haven’t gained the trading experience to take it full time, but that’s the dream. And a great dream it is. But it seems like the days are getting shorter, and there’s never enough time in the day to get everything, or even a good portion of the things, done. The day starts and then runs into the night even before you realize it. Your 9-5 has turned into an 8-6, and your second job, whether…

The Mexican Peso tries to find a floor after losing an average of roughly 5% in its main pairs so far this week.  Weakness has come about as a result of cooler inflation data, weaker retail sales and political factors.  Technically, USD/MXN extends its uptrend within a rising channel.  The Mexican Peso (MXN) trades just off its lows of the week on Friday after a run of three consecutive days where it lost a minimum of over 1.0% in value per day, in its three most-traded pairs (USD/MXN, EUR/MXN and GBP/MXN). This brings the Peso’s total depreciation so far this week…

By Jarrett Renshaw CHICAGO (Reuters) – In a roundtable discussion at this week’s Democratic National Convention, presidential candidate Kamala Harris’ senior policy adviser Brian Nelson was peppered with questions about the policies at the heart of her campaign. Will Harris try to revive the Iran nuclear deal? How will she pay for expanded child tax credits and her plans to help first-time home buyers? Again and again, he gave the same answer. “I am not going to get ahead of the vice president,” Nelson said eight times during the 45-minute event. When Harris accepted her party’s nomination on Thursday night,…

There is just one to take note of on the day, as highlighted in bold.That being for EUR/USD at the 1.1100 level again. Similar to yesterday, the expiries are likely to help lock price action from falling off too much in the session ahead. That at least until we get to Fed chair Powell’s appearance later on. The dollar remains sluggish overall but for now, narrow ranges are prevailing so far on the day.For more information on how to use this data, you may refer to this post here. Source link