Author: FX
3/3 © Reuters. U.S. Secretary of State Antony Blinken speaks, while sitting next to British Secretary of State for Foreign, Commonwealth and Development Affairs James Cleverly, during a meeting at the United Nations Security Council, to mark one year since Russia invade 2/3 By Michelle Nichols and Simon Lewis UNITED NATIONS (Reuters) – U.S. Secretary of State Antony Blinken warned the United Nations Security Council on Friday that it should not be fooled by calls for a temporary or unconditional ceasefire in Ukraine, saying a “just and durable” peace cannot allow Russia to rest and rearm. The council met to…
<p>The major US stock <a href="https://www.forexlive.com/terms/i/indices/" class="terms__main-term" id="eb50e0fb-8258-4e43-80e6-8831246f8b37" target="_blank">indices</a> are seeing a bounce higher. The comments from that Bullard were less hawkish. <a href="https://www.forexlive.com/centralbank/feds-bullard-the-current-situation-may-fall-under-rubric-of-credible-disinflation-20230224/" target="_blank" rel="follow">As Adam points out </a>if there's a Fed official who would push towards 6%, it would be Bullard. However, he is not.</p><p>Also helping is that the S&P index failed to correct below its 200 day <a href="https://www.forexlive.com/terms/m/moving-average/" class="terms__secondary-term" id="d39a8864-434f-487e-bd1e-f9b895111210" target="_blank">moving average</a> at 3940.13 (see earlier post). It reached a low of 3943.08.</p><p>The not so good news is that the NASDAQ index did break below its 200 day moving average at 11409.78. But the price of…
The market has now moved into line with what the Federal Reserve was forecasting in the December dot plot in a rare instance of the central bank being smarter than the market. But the battle begins anew on what happens next.The big question for the Fed on March 22 will be where to put the new dots. Do they want to bump up the top of the range? Leave it largely unchanged? Or push a scenario where rates hold higher for longer?The Dot plot from December 2022I think the last scenario is still the most likely but there’s plenty of…
Share: “Markets have taken on board probabilities around a changed fiscal stance as well as the more aggressive Fed and expect inflation to come under control in quarters and years ahead,” St. Louis Federal Reserve President James Bullard said on Friday, per Reuters. Additional takeaways “Fed has considerable institutional credibility compared with its 1970s” “The current US situation may fall under the rubric of credible disinflations, which do not have large output costs.” “Soft landing is feasible in the US if the post-pandemic regime shift is executed well.” Market reaction These comments don’t seem to be having a significant impact…
Share: The EUR/USD is about to post the lowest weekly close in two months. According to analysts at MUFG Bank, the US Dollar has room to rise further versus the Euro, potentially toward the 200-day Moving Average, currently around 1.0330. Room for USD rebound to extend further “The pair has broken back below the 1.06000-level over the past week and we expect it to fall back towards support from the 200-day moving average that comes in at around 1.0330.” “The recent move lower in EUR/USD has been mainly driven by the USD leg. Stronger US activity data combined…
Markets expect inflation to come under control and quarters and years aheadSoft landing is feasible in the USInflation expectations are now near levels prevailing before the 2021 inflationFull speechYou would think Bullard would be the one pushing for 6% but he’s not. Source link
> European equity close: Worst day of the year so far Closing changes for the main European bourses on the day and week Adam Button Friday, 24/02/2023 | 16:32 GMT-0 24/02/2023 | 16:32 GMT-0 On the day:Stoxx 600 -0.9%German DAX -1.4%Francis CAC -1.4%UK’s FTSE 100 -0.3%Spain’s Ibex -0.15%Italy’s FTSE MIB -0.9%On the week:Stoxx 600 -1.3%German DAX -1.5%Francis CAC -1.5%UK’s FTSE 100 -1.6%Spain’s Ibex -1.3%Italy’s FTSE MIB -1.8% ADVERTISEMENT – CONTINUE READING BELOW Tags ADVERTISEMENT – CONTINUE READING BELOW Most Popular ADVERTISEMENT – CONTINUE READING BELOW ADVERTISEMENT – CONTINUE READING BELOW Source link
Share: Data released on Friday in the United States showed an increase in Real Personal Spending and higher inflation numbers. Analysts at Wells Fargo point out that a clean read on January income is tough. They argue that while a jump in wages is supportive of spending, it’s a challenge for the Federal Reserve if it keeps the heat on inflation. Signs of resilience beneath volatility “Real personal spending got a lift again to start the year, and in jumping 1.1% in January, growth more than offset weakness at year-end. A blow-out January retail sales report pointed to…
EURUSD moves toward lower channel trend lineThat wander, transitioned to a run after the higher-than-expected core PCE data in the US today. The pair moved to a low of 1.0535. That got to within eight pips of the lower channel trendline (at the time). The price has rebounded modestly, but the sellers remain more in control. They continue to chase the lower trendline which is running away as result of its downward slope. Currently comes in at 1.05244. Keep an eye on that level for some potential Friday profit-taking if selling intensifies. Source link
Share: US Dollar extends gains during Friday’s American session. Economic data continues to support more rate hikes from the Fed. GBP/USD tests levels under critical support area of 1.1940. The GBP/USD dropped further on Friday following the release of US economic data and bottomed at 1.1927, the lowest level in a week, and slightly above the monthly low. The pound is consolidating weekly losses amid a stronger US Dollar and higher US yields. US activity and inflation figures above consensus favoured expectations of higher for longer interest rates. As a consequence, the 2-year Treasury yield jumped to the…