Author: FX
A snippet on what Deutsche Bank is expecting from the Bank of England:expect a +25bps hike taking the Bank Rate to 5.25%it is a close call between that and +50bpsBeyond next week’s decision, see two more +25bps hikesrate cuts potentially starting from Q2 of 2024—Announcement due at 1100 GMT, which is 0700 US Eastern time: Source link
Share: USD/CAD loses traction but remains well supported above 1.3260. Fitch lowered the United States government’s credit rating from AAA to AA+ on Tuesday. The US ISM Manufacturing PMI rose to 46.4 from 46.0 in July, below expectations of 46.8. Canada’s manufacturing sector declined for the third consecutive month in July. The Canadian Employment Change and Nonfarm Payrolls will be the week’s highlights for USD/CAD. The USD/CAD pair loses ground after approaching the 1.3300 mark and holds above 1.3275 during the early Asian session on Wednesday. The major pair is on track for its sixth weekly close above…
Gold, XAU/USD, US Dollar, DXY Index, Fitch, AA+, Treasury Yields, GVZ – Talking PointsThe gold price appears directionless despite moves in other marketsThe Fitch announcement might see pressure on risk assets and haven asset tailwindsIf volatility emerges in the gold price, will it help or hinder the precious metal? Recommended by Daniel McCarthy How to Trade Gold The gold price steadied into the Asian session on Wednesday after a selloff into the New York close overnight.The price action comes after Fitch, a large credit rating agency, downgraded the US sovereign debt credit rating to AA+ from AAA.The agency “expected fiscal…
Mick Koulavong/iStock via Getty Images Rockwell Automation (NYSE:ROK) on Tuesday declined 7.6% — the most in eight months – after the provider of industrial automation technology cut sales guidance for the remainder of the year. Management forecast sales growth of 14% to 16%, less than prior guidance for as much as 16.5%. The company revised the upper limit of its forecast for organic sales growth to 16% from 17% previously. Adjusted EPS is expected to be in a range of $11.70 to $12.10, less than the prior range of as much as $12.20. Rockwell (ROK) lifted its EPS estimate to…
© Reuters. FILE PHOTO: A U.S. five dollar note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo (Reuters) – Ratings agency Fitch on Tuesday downgraded the United States’ long-term foreign currency ratings to AA+ from AAA, reflecting expected fiscal deterioration over the next three years as well as a high and growing general government debt burden. The downgrade follows a debt ceiling agreement in June that came after months of political brinkmanship and ultimately lifted the government’s $31.4 trillion debt ceiling. “In Fitch’s view, there has been a steady deterioration in standards of governance over the…
The rating downgrade of the United States reflects the expected fiscal deterioration over the next three yearsCites repeated debt limit standoffs and last-minute resolutionsIn Fitch’s view, there has been a steady deterioration in standards of governance over the last 20 yearsWe expect the general government deficit to rise to 6.3% of GDP in 2023, from 3.7% in 2022Fitch forecasts a GG deficit of 6.6% of GDP in 2024 and a further widening to 6.9% of GDP in 2025The interest-to-revenue ratio is expected to reach 10% by 2025 (compared to 2.8% for the ‘AA’ median and 1% for the ‘AAA’ median)…
Share: The GBP weakened on Tuesday against the USD as the Greenback gained ground against most of its rivals. Ahead of Thursday’s Bank of England (BoE) decision, the weak British made the GBP lose interest while markets await key labour data from the US. Economic data reported on the session from the US came in weak, but the DXY index hold gains above 102.00. Read More… The Pound Sterling (GBP) delivers a perpendicular fall as investors remain cautious ahead of the interest rate decision by the Bank of England (BoE), which will be announced on Thursday. The GBP/USD pair fails to discover…
Phillips 66 Q2 2023 Earnings Preview Source link
US DOLLAR FORECASTThe U.S. dollar, as measured by the DXY index, continues its impressive rebound, gaining strength from the surge in U.S. Treasury ratesThe rise in bond yields has a positive impact on USD/JPY, propelling the currency pair to its highest levels in almost four weeks.Market focus remains on the highly anticipated U.S. jobs report, which is scheduled to be released later in the week. Trade Smarter – Sign up for the DailyFX Newsletter Receive timely and compelling market commentary from the DailyFX team Subscribe to Newsletter Most Read: S&P 500, Nasdaq 100 Forecast – Apple and Amazon Earnings Eyed…
The BOE decision is comin’ right up! Are they in for a “dovish hike” like some of their central bank peers? Here’s what the U.K. central bank might have up its sleeve and how pound pairs might react. Event in Focus: Bank of England Monetary Policy Statement for August 2023 When Will it Be Released: August 3, Thursday: 11:00 am GMT Use our Forex Market Hours tool to convert GMT to your local time zone. Expectations: BOE to hike interest rates by 0.25% from 5.00% to 5.25% MPC to vote 7-2 in favor of tightening vs. holding No change to…