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Overview The April US Consumer Price Index (CPI) report revealed a softer-than-expected inflation rate, increasing by 0.3% for the month and registering a 3.4% year-over-year increase, slightly below market expectations. Core CPI, excluding volatile food and energy costs, also rose by 0.3%, showing a slight deceleration from the previous month’s 0.4% increase. This report, coupled…
The Reserve Bank of Australia (RBA) maintained its official cash rate at 4.35%, reinforcing the reality of “higher-for-longer” interest rates. Despite anticipation of potential rate cuts due to easing inflation, the RBA’s decision reflects ongoing concerns about persistent inflationary pressures, particularly in the services sector. Inflation and Interest Rates Housing Market Concerns Economic Indicators and…
The latest U.S. Non-Farm Payrolls (NFP) report, released today, revealed that the economy added 175,000 jobs in April. This figure fell significantly short of market expectations of a 241,000 increase, marking the smallest monthly job growth in six months and signaling a cooling labor market. The report is a crucial indicator of economic health and…
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…
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…
The U.S. economy’s growth in the first quarter of 2024 was more subdued than expected, marking a slowdown from the robust growth seen in previous quarters. The advance GDP estimate of 1.6% annualized growth released by the Bureau of Economic Analysis (BEA) fell short of economists’ consensus of 2.5%. This deceleration becomes more pronounced when…
Currency traders are reading what they want from US data as immediate reaction to the Advanced GDP figures see a strong push by the greenback. Note we have the headline figure coming in at 1.6% quarter-on-quarter well short of the consensus forecast of 2.5% quarter-on-quarter though previous results did see an upside adjustment to 3.4%…
US Flash Manufacturing PMI saw a dip below 50 at 49.9, technically signalling a contraction, against consensus forecast of 52.0 while Flash Services PMI also fell short to read 50.9 against the consensus forecast of 52.0. As a response we are seeing across the board dollar weakness with Cable making the most of the situation…
Financial markets start the Asian Trading Day in turmoil following reports of an attack by Israel on Iran with a quick pop higher by Gold, Oil, and the Swiss Franc. Immediate reports indicate a limited strike using drones into central Iran. Nuclear facilities remain unaffected. Look for Iranian response to the attack otherwise we could…
Major dollar pairs saw a quick drop with the close of London though we see little catalyst behind the move with a mostly light calendar day. Prior to the drop we have seen the greenback in mostly choppy trading with technical impetus fueling an EURUSD attempt at consolidation, GBPUSD failure to hold early gains, and…