Author: FX

© Reuters. World Bank President David Malpass attends the Reuters NEXT Newsmaker event in New York City, New York, U.S., December 1, 2022. REUTERS/Andrew Kelly WASHINGTON (Reuters) – World Bank President David Malpass said on Tuesday that the lender is not considering giving up its top-tier credit rating as a means to expand lending as it revamps its business model to address climate change and other global crises. “The triple-A rating is very important to the financial stability of the bank, and also is a huge benefit to the clients, because we pass on the benefits of that good credit…

EURUSD trades in a narrow range todayThe EURUSD has been chopping up and down in a fairly narrow trading range. The high to low trading range is only 47 pips. That compares to the average over the last 22 trading days of 92 pips (about a month of trading). The low price today stalled near the high from December 30 near 1.07127. The pair then moved back higher and stalled just short of the high from yesterday at 1.07601. The high price reached 1.07587 on the run back up. The price currently trades around the high going back to December…

The World Bank announced on Tuesday that it expects the global economy to grow by 1.7% in 2023, down sharply from 3% in June’s forecast, as reported by Reuters. Key takeaways “World Bank forecasts US 2023 GDP growth at 0.5% vs 2.2% in June forecast; weakest non-recession performance since 1970.” “Growth outlook dimmed by effects of monetary tightening, slowdowns in US, Eurozone, China and Ukraine war spillovers.” “World Bank sees Eurozone GDP flat in 2023 vs 1.9% growth in June forecast due to soaring energy costs, rising borrowing costs.” “Investment in emerging market and developing economies projected to grow at…

S&P 500 News and AnalysisBig US banks prepare for a challenging 2023 ahead of fourth quarter earnings reportS&P 500 technical considerations: Lack of bullish follow through poses a challenge for US equities as the long-term downtrend dictates direction into 2023The analysis in this article makes use of chart patterns and key support and resistance levels. For more information visit our comprehensive education library Recommended by Richard Snow What do our analysts foresee in equities for Q1 Big US Banks Prepare for a Challenging 2023 Ahead of Fourth Quarter Earnings ReportFour of the main lenders in the US are expected to…

cmannphoto/iStock via Getty Images A.O. Smith (AOS) fell 3.5% in premarket trading Tuesday after analysts at UBS downgraded the maker of water heaters to Sell from a previous investment rating of Neutral. They said they expect the stock to underperform based on limited sales growth and growing competition in key markets such as North America and China. A.O. Smith (AOS) was down 2.8% to $59.75 a share by 8:38 a.m. ET. “North America headwinds include declining housing starts and commodity deflation (25% of water heaters indexed to steel), as well as market share bleed,” Damian Karas, analyst at UBS, said…

Europe and the EURO– 2023 Outlook With weaker growth, tight labour market and higher and longer-lasting inflation in 2022, the outlook for the euro area has worsened. Headline inflation may have ended the year at a lower level than initially anticipated, but partly thanks to one-off government support in Germany, core inflation actually moved higher, which has increased expectations for a short and shallow recession in 2023 while the case for additional ECB hikes remains strong. Consumer and business confidence have remained low as the economic effects of the war in Ukraine play out and intensify the strong inflationary pressures,…

2-year Treasury yields +4.2 bps to 4.241%10-year Treasury yields +4.4 bps to 3.561%30-year Treasury yields +2.6 bps to 3.676%This is helping to underpin USD/JPY slightly at the moment, with the pair now up 0.2% to 132.15 from around 131.70 levels earlier in the session. There is still a state of flux among major currencies as broader markets remain more cautious and tentative but bonds are slipping a little on the session, with stocks also holding slightly lower.All eyes are on the upcoming remarks by Fed chair Powell but as mentioned here, we might not even get anything significant from Powell…

EUR/USD made a new cycle high and ran out of energy, after three months of strong gains. In the opinion of Kit Juckes, Chief Global FX Strategist at Société Générale, Euro is a buy on dips barring new geopolitical developments. It may be a dull day “Were it not for the war in Ukraine on Europe’s inflation/growth trade-off, public finances and terms of trade; EUR/USD should now be a clear uptrend and ‘ought’ to be nearer 1.20.” “Both the direct economic impact of the war and the negative effects on confidence of exposing European energy dependency matter, of course. But,…

All eyes will be on major central bankers in the next trading sessions! Check out AUD/CAD’s 1-hour chart and see if today’s catalyst can extend the pair’s uptrend! Before moving on, ICYMI, yesterday’s watchlist checked out USD/CHF’s range support ahead of this week’s closely-watched U.S. economic releases. Be sure to check out if it’s still a valid play! And now for the headlines that rocked the markets in the last trading sessions: Fresh Market Headlines & Economic Data: Tokyo inflation hits 4% y/y, pointing to stronger-than-expected uptrend Japan’s November household spending falls 1.2% y/y, its first decline in six months…

Matthew Horwood/Getty Images News Shares of Virgin Orbit (NASDAQ:VORB) rallied on Monday after the company announced that the initial window for its historic flight would officially open later in the day. The Start Me Up mission, named after the Rolling Stones song, marked the first international mission for the company and the first commercial launch from U.K. soil (or from anywhere in western Europe). How it was supposed to work: A modified Boeing (BA) 747 dubbed Cosmic Girl hoped to send commercial and government satellites from several nations into space via “air launch,” or launching a rocket from under the…