Author: FX
The ZAR’s reaction to the SARB MPC decision and policy statement was relatively muted as the decision was in line with consensus, and guidance from the central bank was mostly like that issued in the previous meeting and address. On a positive note, we did see a slight upward revision to the outlook for GDP in 2023. Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team Subscribe to Newsletter Key Takeaways from the SARB MPC meeting:1. The Monetary Policy Committee has decided to maintain the repurchase rate at 8.25%2. The…
Philadelphia Fed business activity index falls to -12.0For the full report CLICK HEREPrior month 12.0Philly Fed business index -13.5 vs -0.7 estimate. This is the 14th negative reading in the past 16 monthsCapital expenditures six-month forward 7.5 versus -4.5 last monthEmployment -5.7 versus -6.0Prices paid 25.7 versus 20.8 last monthprices received 14.8 versus 14.1 last monthNew orders -10.2 versus 16.0 last month.Shipments -3.2 versus 5.7 last month.Unfilled orders -13.6 versus -4.8 last monthdelivery times -14.9 versus -7.0 last month.Inventories 8.9 versus -10.2 last month.Average employee work 4.7 versus 6.3 last monthThe six-month forward business activity index came in 11.1 versus…
Share: The US Dollar has continued to strengthen following the FOMC meeting. Economists at MUFG Bank analyze Greenback’s outlook. The Fed plans to keep rates higher for longer While the Fed left the policy rate unchanged, the updated guidance provided a stronger signal that the Fed plans to keep rates higher for longer. It has prompted the US rate market to scale back expectations for rate cuts from the Fed next year. Almost 50 bps of cuts have been taken out of the US curve so far this month which is helping to provide more support for the…
Bank of England Holds Interest Rates Steady at 5.25%The monetary policy committee narrowly decided to hold (5-4)Disinflation expected to continue but growth forecasts for H2 likely to be weakerBoE hints at a potential peak in interest rates as the bank stated it will be “sufficiently restrictive for sufficiently long” to get inflation to targetCustomize and filter live economic data via our DailyFX economic calendarCovered in yesterday’s report, UK CPI posted the most convincing drop in prices witnessed this year as both the headline and core measures of inflation printed lower than consensus estimates. The biggest downward contributions came from accommodation…
EUR/USD and EUR/GBP Forecasts – Prices, Charts, and AnalysisLearn How to Trade the Euro versus the US Dollar Recommended by Nick Cawley How to Trade EUR/USD Most Read – Euro Price Latest: EUR/USD Struggles Against a Robust US DollarThe Euro is holding tis own against a strong US dollar, aided by higher Euro Zone bond yields, while the single currency is pushing higher against the British Pound as the latest BoE policy decision nears.The Federal Reserve left interest rates untouched last night but chair Powell’s subsequent press conference suggested a hawkish hold by the US central bank with the possibility…
Article by IG Chief Market Analyst Chris BeauchampDow Jones, Nasdaq 100, Nikkei 225 Analysis and ChartsDow slumps following Fed decisionThe index saw a substantial reversal yesterday and has moved back towards the lows of last week.The 100-day SMA could now provide some support, but below this,the 34,000 level and the 200-day SMA could also see some buying emerge.A revival above 35,000 would be needed to secure a more bullish short-term view.DowJones Daily ChartSee how the latest Daily and Weekly Changes affect Dow Jones Sentiment of clients are net long. of clients are net short. Change in Longs Shorts OI Daily…
Cinefootage Visuals/iStock via Getty Images Microsoft (NASDAQ:MSFT)-backed OpenAI unveiled the latest version of its text-to-image AI tool called DALL·E 3. The company said that DALL·E 3 is now in research preview, and will be available to ChatGPT Plus and Enterprise customers in October, via the API and in Labs later this fall. DALL·E 3 is built natively on ChatGPT, which lets one use ChatGPT and help refine their prompts. DALL·E 3 understands significantly more nuance and detail than the company’s previous systems. Modern text-to-image systems have a tendency to ignore words or descriptions, forcing users to learn prompt engineering. But,…
© Reuters. FILE PHOTO: The sign for Sweden’s central bank is pictured in Stockholm, Sweden, August 12, 2016. REUTERS/Violette Goarant/File Photo By Simon Johnson STOCKHOLM (Reuters) -Sweden’s central bank raised its key policy rate by a quarter percentage point to 4.00%, as expected, on Thursday and said it might need to do more to bring inflation back to its 2% target. The Riksbank has now increased the policy rate at eight consecutive meetings to fight a surge in inflation that peaked at more than 10% in December last year. Headline inflation stood at 4.7% in August, still well above the…
The Fed’s hawkish remarks boosted the U.S. dollar across the board including against the Japanese yen. Will USD/JPY see a deep enough pullback to present an attractive entry for the trend traders? Here’s the 1-hour chart zone that we’re looking at: USD/JPY 1-Hour Forex Charts by TV In case you missed the FOMC event, you should know that the Fed paused its interest rate hikes in September as many had expected. More interestingly, FOMC members still see at least one more rate hike in 2023. Not only that, but their “dot plot” projections point to a longer period of high-interest…
AUD/USD ANALYSIS & TALKING POINTSFed guidance = elevated rates for longer.US initial jobless claims in focus later today.Long wick ominous for AUD. Recommended by Warren Venketas Get Your Free AUD Forecast AUSTRALIAN DOLLAR FUNDAMENTAL BACKDROPThe Australian dollar took a turn lower after yesterday’s FOMC announcement and Westpac lending index data. The Fed kept their rates on hold but delivered a hawkish message that suggested sustained elevated interest rates for a longer period with fewer rate cuts in 2024 – now priced in at 56bps vs 100bps recently (see table below).IMPLIED FED FUNDS FUTURESSource: RefinitivEarlier this morning, the RBA bulletin was…