End to rate hikes will coincide with an end to USD gains during early 2023 – Wells Fargo
In the view of economists at Wells Fargo, end to monetary tightening should bring the US Dollar’s gains to an end by early 2023. Eventual US recession to soften the greenback “An end to rate hikes will coincide with an end to USD gains during early 2023. Indeed, we believe a peak in the trade-weighted […]
GROWTH MODELS + MONTHLY SAVINGS – Analytics & Forecasts – 14 January 2023
Next, an investment model is proposed in which with an Initial Balance of €1000, and a small monthly contribution of €100, a great growth in the final balance can be achieved. With a compound interest of 3.5% and reinvesting what is earned month after month, in a period of 10 years a final balance of […]
GBP/USD Gains On US Inflation, Surprise Sign of UK Growth
GBP/USD Price, Analysis, and Charts The Pound gained on the Dollar as did many other currencies Friday Relaxing US inflation has buoyed hopes that rate hikes could end soon UK Growth beat expectations, but expectations were pretty low Recommended by David Cottle How to Trade GBP/USD The British Pound rose against the US Dollar on […]
Reparations for Black Americans ‘could finally lead to closure’: Sandy Darity
Black Americans whose ancestors were enslaved have been excluded from full citizenship in the United States for the last 247 years — and granting them full citizenship will cost between $13 trillion and $14 trillion, economist William “Sandy” Darity told a conference of fellow U.S. economists last week. To see the impact of second-class citizenship […]
Globalization is not dead, but it is facing a big tail-risk, expert says
Reports that globalization is dead are overstated, a top economist says. Conventional wisdom has it that globalization will suffer in the aftermath of the pandemic and Russia’s war in Ukraine. The Biden White House’s move to reshore manufacturing and to deny China access to advanced technologies are seen as further steps away from a robust […]
China growth to be back on track soon
“The world’s second-largest economy is expected to quickly rebound because of the country’s optimized Covid-19 response and after its economic policies continue to take effect,” Bloomberg quotes an interview from Guo Shuqing, party secretary of the People’s Bank of China (PBOC), to People’s Daily published on Sunday. Additional comments As China’s government gives households and […]
‘Markets are going to get rocked’ as Fed is likely to push rates higher, economist warns
The Federal Reserve is likely to raise interest rates more than the markets now expect, says Ricardo Reis, an economist at the London School of Economics. “Markets are going to get rocked,” Reis told MarketWatch on the sidelines of the American Economic Association annual meeting in New Orleans. “All the risks are on the upside. […]
Recession is coming but the ISM does not mark the start of it – Wells Fargo
The ISM Service PMI for December released on Friday came in below expectations and triggered fears about a hard landing of the economy. Analysts at Wells Fargo forecast a recession is coming but they point out that this report does not market the start of it. Key quotes: “One unsettling takeaway from today’s services ISM […]
Concerns over EU, US Growth Cloud Outlook
The EURUSD is in focus this week as concerns over economic growth in the US and European Union cloud the outlook. Markets gear up for FOMC Minutes On the US Dollar side of the currency pair, the FOMC Minutes will be published later today with more insights into the central bank’s economic outlook and monetary […]