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 latest Federal Open Market Committee (FOMC) meeting has kept the financial markets on edge as the Federal Reserve opted to maintain the federal funds rate at 5.5%. This decision reflects a cautious approach by the Fed amidst an economic landscape marked by persistent inflationary pressures and mixed economic signals. Overview of the Current Economic…
The latest US Consumer Price Index (CPI) data presented mixed signals, with some figures below expectations, potentially altering the trajectory of Federal Reserve policy. Here’s a breakdown of the report and its implications: Implications for Federal Reserve Policy: Given these figures, the softer-than-expected inflation data could influence the Federal Reserve’s rate path, particularly if viewed…
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…
With an FOMC rate decision and economic projects due Wednesday, traders will be closely looking on rate differential issues. Already the ECB has started its own easing cycle with last weaks 25bps cut though none committal on when the next move will be. On the other side speculations call for the Fed to reduce the…
As the Federal Open Market Committee (FOMC) meets today (1800GMT), expectations are set for interest rates to remain at the 23-year peak of 5.25-5.5%. This decision comes amid persistent inflation pressures and a resilient U.S. economy. Here’s what financial markets should watch for: 1. Adjusted Expectations for Rate Cuts Amid Inflation Concerns The persistence of…
