Author: FX
Share: Gold is facing headwinds from several sides at once. Prospects of higher rates are set to weigh on the yellow metal, economists at Commerzbank report. Further Fed rate hikes “Gold ETFs have been seeing increased outflows again of late, for one thing. Outflows in the last five days of trading have totalled 14.7 tons, which equates to just shy of three tons per day.” “The world’s largest and most liquid Gold ETF has also registered outflows again recently. Previously, it had seen slight net inflows for several weeks, fuelling hopes that ETF investors were returning. It appears that…
GBPUSD corrects up to resistance targetThe dip buyers against the 100/200 day moving averages in the GBPUSD GBP/USD The GBP/USD is the currency pair encompassing the United Kingdom’s currency, the British pound sterling (symbol £, code GBP), and the dollar of the United States of America (symbol $, code USD). The pair’s rate indicates how many US dollars are needed in order to purchase one British pound. For example, when the GBP/USD is trading at 1.5000, it means 1 pound is equivalent to 1.5 dollars. The GBP/USD is the fourth most traded currency pair on the forex exchange market, giving…
Joe Raedle The U.S. Food and Drug Administration (FDA) has convened a group of independent experts for a meeting on Mar. 16 to decide on the full approval for Pfizer’s (NYSE:PFE) COVID-19 pill Paxlovid. The decision comes more than seven months after the company announced the U.S. regulatory submissions for its New Drug Application (NDA) for Paxlovid, which the FDA cleared in 2021 for emergency use for the treatment of mild-to-moderate COVID-19. At the virtual meeting, the FDA’s drugs advisory committee on antimicrobial treatments will discuss the approvability of Pfizer’s (PFE) NDA, targeted at those aged 12 years and above…
Share: New Home Sales in the US rose at a stronger pace than expected in January. US Dollar Index clings to strong daily gains above 105.00. Sales of new single‐family houses rose by 7.2% in January to a seasonally adjusted annual rate of 670,000, the data published jointly by the US Census Bureau and the Department of Housing and Urban Development showed on Friday. This reading followed December’s increase of 7.2% (revised from 2.3%) and surpassed the market expectation of 2.5% by a wide margin. Market reaction The US Dollar Index clings to strong daily gains above 105.00…
Share: Wage growth in the US is running too high to be consistent with a timely and sustainable return to the Federal Reserve’s 2% inflation objective, Federal Reserve Governor Philip Jefferson said on Friday. Additional takeaways “Fed is addressing inflation promptly, forcefully to maintain its credibility, preserve inflation anchor.” “Outlook for non-housing core services inflation depends on whether labor demand moves into better balance with labor supply.” “Ongoing imbalance between supply and demand for labor suggests high inflation may come down only slowly.” “Fed’s credibility is higher now than in 1960s and 1970s.” “Argument that policymakers should accept that disinflation…
Share: Economists at Nordea think central banks still have a lot of work to do, and risks remain tilted toward this hiking cycle continuing for considerably longer. Fed will probably need to bring the Fed funds rate up close to 6% “The resilient economy implies central banks will need to hike rates to ever higher levels.” “We see the Fed’s benchmark approach 6% and the ECB’s 4% later this year.” “Also longer US yields will continue to climb, and we target 4.5% for the 10-year Treasury yield.” Source link
The US major indices are stretching to the new session lows. NASDAQ index below its 200 day moving averageThe NASDAQ NASDAQ The Nasdaq Stock Market or NASDAQ is an American stock exchange. It trails only the New York Stock Exchange (NYSE) in market capitalization and is part of a network of stock markets and options exchanges.Launched back in 1971, NASDAQ is the acronym for the National Association of Securities Dealers Automated Quotations. Since then it is known simply as NASDAQ and has become one of the most influential exchanges worldwide.The NASDAQ was the world’s first electronic stock market, and has…
Cleveland Fed Pres. MesterWith labor market strong, costs of undershooting on policy or prematurely easing still outweigh the costs of overshootingEconomy does end up in recession in most deflationary periodsIt’s more costly to set policy assuming inflation expectations well anchored when they aren’t than the other wayScenario analysis should play a larger role in policymakingMester is a hawk but she isn’t pushing too hard here for more hikes, though she certainly sounds open to the idea. The next Fed decision is March 22 and that will come with a new dot plot. There’s lots of data to come between now…
Share: US Dollar and yields rise further after US economic data. US Core PCE rises above expectations in January. Gold hits fresh weekly lows near $1,810. Gold prices dropped further after the beginning of the American session amid a stronger US Dollar and higher Treasury bond yields following data that showed the core PCE rose at the highest rate in six months, above expectations. XAU/USD bottomed at $1,809/oz, the lowest level since December 29. It is hovering around the lows, looking at the $1,800 area. The 20-week Simple Moving Average awaits at $1,797. Bulls need to recover the…
Share: The Bank of England (BoE) is signaling an end to the rate hike cycle soon. If inflation does turn out to be more persistent than the BoE expects, its rather dovish stance is likely to weigh further on the Pound, economists at Commerzbank report. GBP weakness is likely to persist next year as well “The BoE runs the risk of ending its fight against inflation too soon and inflation becoming a more persistent problem. This risk is likely to weigh on the Pound in the coming months, which is why we expect further moderate appreciation in EUR/GBP…