ECB and Fed policies to diverge, lifting the Euro – MUFG
Near-term ECB policy outlook has been the driver of EUR volatility this week. A diverging monetary plicy between Fed and ECB is set to boost the Euro, according to economists at MUFG Bank. ECB policy rate to reach 3.00% by the end of this quarter “We are sticking with our forecast for the policy rate […]
More from the Feds Waller: Fed will have to keep rates high and not cut by year end
The Fed will have to keep rates high and not cut rates by the end of 2023 Market perception of terminal rate is not far from where we are Market expectations for rate cuts later this year is driven by optimism inflation will melt away The Fed does not expect inflation Inflation Inflation is defined […]
Atlanta Fed GDPNow 4Q estimates are in the books
Atlanta Fed GDPNow history for Q4 growth The Atlanta Fed GDPNow estimate for 4Q growth came in unchanged at 3.5% after the existing home sales today. IN their own words: “The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2022 remains 3.5 percent on January 20. The […]
USD remains range-bound on dovish Fed rate hike outlook
Asset markets are somewhat sluggish and reluctant to recover on Friday, following Thursday’s drop, which saw S&P 500 breaking through 3900 points. Dollar was slightly bid on the back of growing risk-off, however, during this week the DXY appears to remain in equilibrium in the range of 102-102.50:Despite a slew of negative updates on the […]
Gold Elevated as Markets Continue to Dismiss Fed Guidance
GOLD OUTLOOK & ANALYSIS Markets overruling the Fed which may be a fatal blow for gold should the Fed follow through on their promises. Fed speakers to dominate headlines today Overbought price action possibly hinting at short-term bearishness? Recommended by Warren Venketas Get Your Free Gold Forecast XAU/USD FUNDAMENTAL BACKDROP Gold is continuing to press […]
EUR/USD clings to mild gains near 1.0850 as ECB, Fed hawks jostle amid recession concerns
EUR/USD grinds higher around intraday top as it braces for the second consecutive weekly gain. Although Fed officials also sync the tune with ECB hawks, hopes of shorter recession in Europe favor bulls. Downbeat US data renew economic fears surrounding the world’s largest economy and probe DXY bulls. ECB President Lagarde’s speech, Fed talks before […]
USD/CNH snaps four-day uptrend around 6.7700 despite PBOC inaction
USD/CNH consolidates weekly gains with mild daily losses. PBOC keeps one-year, five-year Loan Prime Rates (LPRs) unchanged. US Dollar’s inability to cheer hawkish Fedspeak weigh on prices amid cautious optimism. USD/CNH remains pressured around 6.7700, printing the first daily loss in a week, as trades react to the People’s Bank of China’s (PBOC) status quo […]
Australian Dollar, Dow Jones at Risk as Fed Officials Stress Tight Policy Ahead
Australian Dollar, AUD/USD, Dow Jones, Hawkish Fedspeak – Asia Pacific Market Open: Australian Dollar fell Thursday as risk aversion sank Dow Jones Hawkish Fedspeak was a key driver, Asia-Pacific markets at risk AUD/USD remains above the 20-day Simple Moving Average Recommended by Daniel Dubrovsky Get Your Free AUD Forecast Asia-Pacific Market Briefing – Australian Dollar […]
EUR/USD aims to surpass 1.0840 as hawkish ECB bets soar
EUR/USD is looking to stretch its recovery move above 1.0840 amid soaring hawkish ECB bets. Weakness in S&P500 due to soaring recession fears are restricting the upside in the risk-perceived currencies. US Treasury yields have displayed a recovery after printing fresh multi-month lows. The EUR/USD pair is struggling to extend its rebound above the immediate […]
Atlanta Fed GDPNow remains steady at 3.5%. Tomorrow will be the last estimate for the 4Q.
The Atlanta Fed GDPNow model projects the fourth-quarter GDP at 3.5%. That is unchanged from the yesterday’s estimate. In their own words: “The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the fourth quarter of 2022 is 3.5 percent on January 19, unchanged from January 18 after rounding. After this morning’s […]