U.S. employment costs rise more slowly, but still too fast for Fed comfort
The numbers: The U.S. employment cost index rose more slowly at the end of 2022 for the third quarter in a row, but worker compensation still rose a sharp 1% and didn’t offer much comfort to the Federal Reserve as it fights to tame inflation. Economists polled by The Wall Street Journal had forecast a […]
BoE: In A Pretty Protracted Recession?
The BoE is facing a very difficult situation, and while the recession may not be quite as bad as feared initially, it will likely be pretty protracted. There are also signs that medium term growth potential is lower than previously thought. Inflation is coming down faster than initially expected, at least in the headline numbers. […]
U.S. consumer sentiment strengthens in final January reading
The numbers: U.S. consumer sentiment improved in late January to 64.9, according to the University of Michigan’s gauge of consumer attitudes. This added 5.2 index points from 59.7 in December and was up from the initial January reading of 64.6. Economists surveyed by The Wall Street Journal had forecast an unchanged reading of 64.6. Key […]
Fed set to deliver quarter-point rate hike along with ‘one last hawkish sting in the tail’
The Federal Reserve will downshift to a 25 basis point rise in its policy interest rate at their upcoming interest-rate meeting and will work overtime to make sure that the market doesn’t get the idea that rate increases are finished, economists said. “Despite the good news on inflation and being one step closer to done, […]
XAU/USD buyers could retain control if US GDP dismisses recession fears
Gold price bulls take a breather just below $1,950 after the ongoing upsurge. XAU/USD eyes critical US events for the next move, FXStreet’s Dhwani Mehta reports. United States Gross Domestic Product data to affect risk trends “Should the key US US GDP disappoint, implying signs of slowing down in the American economy, the USD could […]
South Korea’s economy contracts sequentially in Q4 for first time in 2 years
South Korea’s economy contracted sequentially in the fourth quarter of 2022 for the first time in more than two years due to weak exports and private consumption. Gross domestic product shrank 0.4% from the prior quarter during the October-December period–the first sequential contraction since the second quarter of 2020–after a 0.3% expansion in the third […]
Can US Q4 GDP Break the Recession Narrative?
Amidst all the debate of whether the US is heading into a recession this year, we get the first look at last year’s GDP figures. This could be the biggest market moving event of the week, especially if expectations are not met. And there is something of a wide range of forecasts. The Fed’s GDPNow […]
EUR/USD sees recovery to near 1.0900 as ECB to continue rate hikes beyond summer
EUR/USD is eyeing to recapture the 1.0900 resistance as ECB might not pause policy tightening beyond summer. The Euro is delighted with bullish bets for CY2023 as the ECB will continue to raise interest rates further. According to the consensus, investors should brace for a contraction in the US GDP for the fourth quarter of […]
China’s Reopening Complicates Global Fight Against Inflation: WSJ
Stronger Chinese economy will boost demand for commodities but could ease supply-chain bottlenecks, sending mixed signals for central bankers… Source link
Businesses see lower odds US in or entering recession
Early Monday morning in Europe, the National Association of Business Economics (NABE) released details of its January 4-11 survey on the US business conditions while pushing back the recession woes in the world’s largest economy. “The likelihood that the United States is already in recession or will fall into one this year has dropped over […]