The Bank of England is largely expected to keep rates steady in its MPC meeting Thursday with expectations largely calling for a rate cut only in August. Current expectations aside however the latest CPI figures will likely provide guidance for the market, consensus forecast calls for a return to the target rate of 2.0%, failure…
At this point markets more or less know where OPEC stands with regard to production and the question for us is the demand side. With the US driving season already here we should expect demand to pick up at the very least proving a good floor for prices. Throw in speculations over the impact of…
With central banks recognizing the easing of inflation pressures across the globe we question just how much upside there is for Gold. Consider that the push for historical highs was driven by Central Banks buying the yellow metal and investors hedging for inflation. Who else is there to buy particularly if the whales are already…
Latest talk among Bitcoin ETFs continue to focus on outflows with the past week seeing only one Wednesday with a net inflow of a mere $100 million as against the consistent withdrawals of late. We are forced to ask has walls streets clientele wizened up about holding the bag when the music stops. While crypto…
As expected the Bank of Japan decided to keep rates steady Friday with expectations suggesting this stance will continue for quiet some time. That said BoJ Governor Kazuo Ueda has announced it will be trimming it purchase of government bonds over the next two years, not enough of an excuse to see the Yen rally…
Euro initially tried to rally in response to another weak inflation metric from the US though the reaction proved to be short lived eventually giving up gains to see a big sell-off by the close. Our inability to hold gains following the Wednesday rally suggests a focus on the divergence between US and the Eurozone…
The British Pound was a big gainer on the knee-jerk response to weaker than expected US CPI. However the Fed was clear about its stance on the need for more data and market is speculating about a mere single rate cut for 2024 by the US should labor markets remain robust and inflation persistent. In…
Oil prices are looking interesting following the response to the FOMC and the earlier softness in US inflation. Essentially the charts are telling us a near term high backed by the idea of a longer tight monetary policy environment for the US. That said we are entering the US driving season when seasonal cycles dictate…
Gold initially spiked up following the release of slightly weaker than expected CPI data encouraging dollar bears and inflation watchers to call foe an easing. Eventually though Fed Chairman Jerome Powell in his press conference sighted the release as a single data point not necessarily signalling a shift in trends. Note that expectations are now…
The Japanese Yen is again losing ground against the dollar though overall performance has been mixed managing to hold its own with the Euro and slightly weaker with the British Pound. Focus for the day remains to be the FOMC decision later where expectations are for things to remain steady though key here will be…