Author: FX
Share: Crude Oil markets pushed into a new high for the week before settling back on Friday. WTI roils between $74.50 and $73.00 on Friday. Freezing temperatures and geopolitical tensions weigh on supply concerns. Crude Oil bids broadly rose over the week in jittery trading that saw frequent peaks and dips into highs and lows, with West Texas Intermediate (WTI) US Crude Oil settling the week near $73.60 with a 5.6% or $3 spread between the week’s late peak set late on Friday at $74.60 and Wednesday’s weekly low at $70.62. Broad-market concerns about production caps from the…
Share: San Francisco Federal Reserve (Fed) President Mary C. Daly hit newswires for the second time on Friday, expanding on statements she made during an interview with Fox Business earlier in the day. Read more: Fed’s Daly says shifts in labor market could trigger policy adjustments Key highlights: Fed policy remains in a good place, as does the US economy. Need to be patient, there’s still plenty of work to do. Fed doesn’t want to loosen policy too soon or try to squeeze out inflation too fast. 2024 will be a focus on policy calibration. Easing too quickly or before…
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Highlights improving consumer sentiment data (likely today’s UMich report)I’ve heard cautious optimism on economyI see inflation coming downPolicy is in a good placeWe’re in a great place with policy and the economy and we can start to be more patient to see what we need to do nextWe don’t want to solve the inflation problem by taking people’s jobs awayWe don’t want to loosen policy too soonThe job this year is about calibrationGoods prices inflation is coming down and services prices are coming downThere is a purposeful march towards normalizationCyclically we’re getting to a better place This article was written…
US stocks close sharply higher with the S&P index closing at a new record level and above the 4800 level. The NASDAQ index led the way. For the week, the major indices all closed higher for the 2nd consecutive week after sharp declines in week 1 of the 2024 trading year.The final numbers are showing:Dow Industrial Average rose 395.19 points or 1.05% at 37863.83S&P index rose 58.87 points or 1.23% at 4839.82NASDAQ index rose 255.31 points or 1.70% at 15316.96Small-cap Russell 2000 got involved as well with a 20.73 point rise or 1.08% at 1944.39.For the trading week, the major…
© Reuters S&P 500 technical breakout suggests higher highs – Fairlead Strategies The reached a new all-time high Friday, driven in part by semiconductor stocks on the back of strong AI spending trends. It was the first record close for the bellwether index in over two years. For Fairlead Strategies’ technical analysts, today’s strong surge and record close was deserving of a refresh of the charts… and that’s where it gets interesting. According to analysts, if today’s technical breakout is confirmed it could lead to higher highs near-term and longer-term. “Assuming the breakout is confirmed, we see it as a…
Share: Canadian Dollar softly up on Friday as Crude Oil rises. Canada Retail Sales decline more than expected, hampers topside. Loonie up overall on the week but still down against the US Dollar. The Canadian Dollar (CAD) rose on Friday, bolstered by a late-week climb in Crude Oil bids as CAD traders shrugged off headwinds for the time being. Canada saw Retail Sales decline at a faster pace than expected in November, and the Bank of Canada (BoC) was added to the growing list of global central banks that are expected to deliver rate cuts at a slower…
As the NY trading day winds down, keep in mind that the first event on the economic calendar next week is the Loan Prime Rate meeting at the People’s Bank of China.Governor Pan Gongsheng left the MLF rate unchanged last week so expectations are for no change but given the rough ride in Chinese markets so far this year, I wouldn’t rule anything out.The LPR rate was last changed in August: PBOC Loan Prime Rate cut: 1-year 3.45% (prior 3.55%) & 5-year 4.2% (prior 4.20%).PBOC’s Loan Prime Rate:It is an interest rate benchmark used in China, set by the People’s…
The EURUSD this week trended lower into Wednesday but found support buyers against its 200-day moving average. The moving average was tested on two separate occasions, and each time buyers leaned and pushed the price higher. The subsequent rise has taken the price back to a swing area between 1.08788 and 1.0894. Move above that level and it should help in the door for further momentum to the upside. The 200-bar moving average on a 4-hour chart comes in 1.09187. Get above that level and buyers are even more in control.On the downside, the obvious target to get to and…
We have a lot of work left to do on inflation It’s premature to think rate cuts are around the cornerFar too early to declare victoryWe need to get inflation on a consistent trajectory to 2%, need more evidence to feel confident to adjust policy rateAny early signs that labor market could falter could also trigger policy adjustmentImportant to look at any rise in delinquency rates as an early sign of economic weaknessThe message here is that they’re looking for reasons to cut but they haven’t found them yet. The question is: How many months of softening economic data would…