Author: FX
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…
© Reuters. FILE PHOTO: Travelers navigate through a security checkpoint at Hartsfield-Jackson Atlanta International Airport ahead of the Thanksgiving holiday in Atlanta, Georgia, U.S. November 22, 2022. REUTERS/Alyssa Pointer By Doyinsola Oladipo NEW YORK (Reuters) – Fears of recession and the impact of inflation on consumer budgets could curb a rebound in travel demand reported by U.S. travel companies in the fourth quarter, although bookings are holding up so far this year, analysts said. Several big names in the travel and leisure industry, including Airbnb Inc, Hilton Worldwide Holdings (NYSE:) and Royal Caribbean (NYSE:) Cruises are reporting faster rates of…
Share: In this episode, Piers joins me from NYC as we discuss why Morgan Stanley thinks the largest bank in the US could more than double its size in the coming years. We explain how the structure at JPM differs from pure investment bank firms like Goldman Sachs and the implication this has on their share price and investability. On the macro side, stocks continue to grind lower as recent strong data out of the US makes market participants think twice about a Fed pivot. Find out what’s been going on and why Morgan Stanley think things are…
Share: Alibaba stock has dropped 3.6% in Friday’s premarket. BABA is down 21% over the past month. US inflation data is causing shares to recede on Friday. Relations between China and the US are also worrying markets. Alibaba (BABA) stock has lost another 3.6% to trade at $90.80 in Friday’s premarket on the back of a higher than expected inflation reading for the US economy. The Personal Consumption Expenditure (CPE) index came in hot an hour before the stock market opened in New York. The MoM reading for January was up 0.6%, 50% higher than the 0.4% reading…
Share: The Peso depreciated against the USD yesterday. Minutes confirm Banxico’s concerns about stubborn inflation, risks remain, Elisabeth Andreae, FX Analyst at Commerzbank, reports. Political risks “On the markets, the inflation data, which remained below consensus, is likely to confirm the rate expectations. The expectations correspond with the announcement in the statement and seem to point towards a continuation of the rate cycle with smaller steps. In line with the TIE rates the market expects rates to peak at just above 11.5%. So the MXN will not find support on this front.” “The Mexican congress recently passed a…
The downside pressure picks up extra impulse and forces EUR/USD to print new monthly lows in the 1.0545/40 band at the end of the week. If sellers pus Source link
US PCE InflationCore PCE (YoY) 4.7% vs 4.3% expectedHeadline PCE (YoY) 5.4% vs 5% expectedImmediate market reaction: DXY, S&P 500, Yields (updates pouring in, refresh the article in a few minutes) Recommended by Richard Snow Introduction to Forex News Trading Inflation Reveals its Ugly HeadWhile it must be said that the market pays more attention to the CPI version of inflation, the Fed looks to the broader PCE measure as an indication of price trends. Inflation has been declining steadily but a number of different inflation measures (CPI and PPI notable) have shown a bit of a resurgence in price…
The USD is moving higher after the hotter than expected US Core PCE data. In this report I look at the technical breaks in the EURUSD, USDJPY and GBPUSD. Also as a reminder Adam Button is conducting his FREE WEBINAR. You can register and watch by clicking HERE. Source link