Oil prices saw an even bigger follow through sell-off Wednesday on a surprise jump in supply as the US. The Energy Information Administration (EIA) said oil companies added a surprising 7.3 million barrels of crude into stockpiles during the week ended April 26 in the US that coupled with weaker demand should see softer prices…
The Federal Reserve, facing the ongoing challenge of high inflation, decided to hold its benchmark interest rate steady during its latest Federal Open Market Committee (FOMC) meeting. The decision was influenced by concerns about persistently high inflation, with Chair Jerome Powell emphasizing the need to be “highly attentive to inflation risks.” Key Highlights Market Reaction…
As the Federal Reserve’s Federal Open Market Committee (FOMC) prepares for its May meeting today (1800GMT) expectations for a major shift in monetary policy have been tempered. At the start of 2024, many economists anticipated that the Fed would begin preparing for potential rate cuts in light of a disinflationary environment. However, inflation has remained…
Mostly third tier money supply numbers from the UK meant that GBPUSD was centered on US issues as with the rest of the majors. Signs of more inflation pressures in the US quickly saw the greenback gaining ground across the board particularly with another FOMC meeting today in the US where the absence of rate…
Oil Prices sold off on a combination of peace and inflation story. US Secretary of State Antony Bliken has expressed hopes that Hamas will accept the latest Israeli proposal that he termed as “extraordinarily generous”. Latest US data meanwhile showed inflation pressures picking up with the Employment Cost Index reading 1.2% quarter-on-quarter stronger than forecast…
A combination of peace and stronger dollar saw Gold with a big sell-off Tuesday closing just above the days lows. While inflation pressures elsewhere proved to be a boon for the US dollar we note that Gold is actually the traditional asset used to hedge against rising prices. As such we could see the yellow…
EURUSD yesterday was mostly a US story with the market once again focusing on inflation pressures with the Employment Cost Index coming in at 1.2% against a 1.0% quarter-on-quarter forecast. The Euro area mostly saw second liner data with Flash CPI Estimates for the region mostly inline with the consensus forecast at 2.4%. Ahead we…
Strengthening Dollar Amidst Inflation Concerns The U.S. dollar is experiencing a rebound, primarily driven by the latest Employment Cost Index, which rose by 1.2% in Q3, indicating the fastest pace of increase since the same quarter in 2022. This surge in employment costs contributes to a broader narrative that the U.S. economy remains robust, characterized…
Shōwa Day, the late Emperor Hirohito’s birthday fittingly saw USDJPY taking a peak of the 160 region for highs at 160.192 before seeing the pair crash back to the 155 region ahead of the open of European Markets. Note, the fundamental picture for the currency is little changed from what it was last Friday when…
The British Pound has remained buoyant at the start of the week pushing past prior highs on the lack of fresh perspective. This said the fundamental picture of the UK is little change inflation is easing and manufacturing on a contraction. For today potential driver for the pair will be US Employment Cost Index and…