Author: FX
S&P 500 did not see convincing buying following the opening bell in the least – no surprise to clients, I had been bearish ever since the intraday update issued for them during Powell conference latter minutes. Source link
The US Dollar is residing not far from its fresh two-year high level seen in Asian trading on Friday Quadruple Witching – the simultaneous expiration of four types of derivative contracts – is set to take place in the US trading session. The US Dollar Index (DXY) reached 108.55 and looks set to end the year on a rather elevated level. The US Dollar (USD) is residing not far from its fresh two-year high of 108.55 that was hit during the Asian-Pacific trading session. The move was supported by rising US Treasury yields, widening the rate-differential gap with other countries. This…
US PCE data showed softer inflation, reducing Fed’s urgency for aggressive rate hikes. BoE held rates at 4.75%, with divisions on potential rate cuts in 2025. UK Retail Sales missed expectations, with weak demand in clothing. The GBP/USD pair rebounded towards 1.2540 after the release of US inflation data and the Bank of England’s (BoE) monetary policy decision on Thursday. While the pair benefited from softer-than-expected US Personal Consumption Expenditure (PCE) data, the BoE’s cautious stance on rate cuts and weaker UK Retail Sales data kept gains in check. The US Personal Consumption Expenditure (PCE) data for November revealed softer…
In an interview with CNBC on Friday, Federal Reserve (Fed) Bank of Chicago President Austan Goolsbee said that they are still on a path to get to 2% inflation, adding that it was ‘nice’ to get an inflation number that’s better than expected. Key takeaways “There’s more uncertainty, noise.” “My projections were for a little more shallow rate-path in 2025.” “Next 12- to 18- months, rates can go down a fair amount.” “Employment is stable, want to keep it stable, to do so rates need to come down to something like neutral.” “I agree policy rate is meaningful restrictive.” “I agree…
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The Pound Sterling rebounds against the US Dollar on slower than projected US PCE inflation growth in November. A higher number of BoE officials voted for an interest rate cut on Thursday, boosting dovish bets for 2025. The UK Retail Sales rose by 0.2%, slower than expectations of 0.5% in November on month. The Pound Sterling (GBP) recovers sharply in North American trading hours after posting a fresh seven-month low near 1.2470 against the US Dollar (USD) on Friday. The GBP/USD pair bounces back as the US Dollar declines after the release of the United States (US) Personal Consumption Expenditure Price Index (PCE) report for November, which…
Oil prices set for a weekly loss in this final normal trading week of 2024. The hawkish message from the Fed on rate cuts for 2025 has scared investors away from commodities. The US Dollar Index did hit a two-year high for a third day this week and undergoes some profit-taking. Crude Oil prices look unable to avoid a weekly loss of around 2% in yet another downbeat trading day. The mood turned further negative overnight as investors got concerned about the Federal Reserve’s (Fed) hawkish tilt, which could quickly kill off any economic boosts from the Trump administration. Meanwhile, President-elect Donald Trump warned Europe that…
Fundamental OverviewThe USD got a boost from the FOMC decision as the market perceived it as more hawkish than expected. Overall, apart from some slight tweaks, the Fed matched the market’s pricing. Nonetheless, the market reacted in a big way pushing Treasury yields higher and giving the USD a tailwind.The data is what really matters now as it will decide what the Fed is going to do. They switched their focus on inflation again, so it will likely take just one soft CPI report in January to see the market reacting in a dovish way sending Treasury yields and the…
AUD/USD draws support from a softer USD downtick, though it lacks bullish conviction. The Fed’s hawkish stance and a weaker risk tone lend support to the safe-haven buck. The RBA’s dovish shift and China’s economic woes also contribute to capping the pair. Traders look to the US PCE Price Index for short-term opportunities later this Friday. The AUD/USD pair attracts some dip-buyers near the 0.6215 area on Friday and turns positive for the second successive day on Friday, though it lacks bullish conviction. Spot prices currently trade around the mid-0.6200s and remain close to the lowest level since October 2022…
By Hyunsu Yim SEOUL (Reuters) – South Korean police have questioned Prime Minister and Acting President Han Duck-soo as part of an investigation into the short-lived decision this month to impose martial law, an official at his office said on Friday. The acting president was among 12 people present at a cabinet meeting on Dec. 3 shortly before President Yoon Suk Yeol’s shock late-night announcement on martial law. Nine of those people have been questioned by a special police unit investigating the case, the Yonhap news agency reported. Han, a career technocrat, became acting president after Yoon was impeached on…