Author: FX
Inflation expectations, bond yields, and the Israel-Hamas war dominated headlines once again. But we also saw plenty of other headlines from around the globe shake up how traders were pricing in forex sentiment this week. What were the headlines and drivers, and who among the majors came out on top? USD Pairs Overlay of USD vs. Major Currencies Chart by TradingView The U.S. dollar started off in the week negative, likely due to a pullback in geopolitical fears and falling risk aversion sentiment. That sentiment shifted on Wednesday as the conflict in the Middle East flared up after an explosion was reported…
Middle East conflict developments, inflation updates and interest rate expectations continued to dominate the markets this week. These themes and other drivers prompted no sight of the usual risk behaviors and correlations between the major asset classes. Notable News & Economic Updates: ? Broad Market Risk-on Arguments China conducted MLF operations that put a net ¥289B yuan of fresh liquidity in the banking system, the biggest net injection in almost three years China’s Q3 GDP slowed down from 6.3% to 4.9% but beat 4.5% growth estimates; the unemployment rate eased from 5.2% to 5.0% in September U.S. eased Venezuela oil…
Ellington Financial and Great Ajax announce mutual termination of merger agreement Source link
Markets:WTI crude down 20-cents to $88.14US 10-year yields down 7.6 bps to 4.91%Gold up $5 to $1978S&P 500 down 56 points, or 13%GBP leads, NZD lagsEquities took another beating but there were signs of optimism elsewhere. Buyers arrived in fixed income after a test of 10s early in US trading that got to 4.995% but not through. Gold and oil gave back gains, in part due to a report about hostage negotiations in Gazaw.In FX, there was some stability that might have been paralysis as 150.00 continues to hold in USD/JPY and uncertainty reigns. The antipodeans were soft but not…
Share: The EUR/GBP climbed to a fresh five-month high at 0.8740 on Friday, but the Euro bid proves short-lived. The Euro is set to close out Friday’s trading session in the red, but still sees green for the week against the Pound Sterling. Next week sees EU & UK PMI double-header on Tuesday. The EUR/GBP caught a quick boost into fresh highs near 0.8740 before markets reversed the day’s market flows, taking the Euro (EUR) back down against the Pound Sterling (GBP) into the red for Friday, though the EUR/GBP is still closing out a successful trading week…
US stocks are closing the session at the lows with the Nasdaq index leading the way. The final numbers are showing:Dow industrial average -286.91 points or -0.86% at 33127.27S&P index -53.84 points or -1.26% at 4224.15NASDAQ index is down -202.38 points or -1.53% at 12983.80For the trading week, the NASDAQ fell over 3%. Dow industrial average fell -1.61%S&P index fell -2.39%NASDAQ index -3.16%Helping to pressure the stocks into the close, is the S&P’s technical break and close below its 200-day moving average at 4233.13. It was the 1st close below that moving average since March 22.S&P index closes below its…
What happens to the deficit when the economy turns? I know some of this is long-term infrastructure spending but if the bond market is signalling problematic deficits, some tough choices are going to have to be made.Sept deficit $171B vs -$78.6B expectedSept 2022 deficit $430BThe deficit in the 2023 fiscal year was larger than every pre-covid deficit. Source link
It has been a negative week for the major US stock indices, as rates moving higher, geopolitical tension, and dysfunction in Washington. That dynamic does not seem to be going away anytime soon. However next week we get a slew of corporate earnings with something for everyone. A total of 4 of the “Magnificent 7” are scheduled to be released including Microsoft, Alphabet, Meta, and Amazon. Tesla – another of the 7 – already released this week (it was a disappointment). Nvidia and Apple will announce in the future.In addition to the big 4, there are a number of other…
© Reuters. Investing.com – Gold retained its shine across the safe haven world on Friday, revisiting $2,000 the first time since August and eventually setting a three-month high, as contagion worries from the Middle East’s latest war and the Federal Reserve’s hesitancy to raise US interest rates anymore sent a horde of investors toward the yellow metal. “Gold’s safe haven status has been questioned on a number of occasions over recent years but times like this highlight that in times of significant uncertainty, traders look for assets with a track record,” said Craig Erlam, analyst at online trading platform OANDA.…
Bloomberg reports that the US and Europe are pressing Israel to delay an invasion of Gaza because they hope to win hostage releases and proceed with negotiations.This news has led to selling in oil and a boost in risk assets.Here is the report.”US and European governments have been putting pressure on Israel to delay its ground invasion of Gaza to buy time for secret talks underway via Qatar to win the release of hostages held by Hamas, according to people familiar with the efforts,” it says.There are reports of more than 200 hostages in Gaza and the report says there…