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A Goldman Sachs note from later Friday (info via Reuters) has analysts at the bank making more pessimistic forecasts ahead due to a more aggressive Federal Reserve tightening policy through the rest of this year: “higher rates path combined with recent tightening in financial conditions implies a somewhat worse outlook for growth and employment next
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From a macro perspective, hawkish comments from Fed Chair and other US Fed officials at the Jackson Hole meeting have been keeping upside limited in base metals. The recent inflation data unexpectedly beat market expectations and renewed fears that the markets could witness a hefty rate hike in September has also been pressurizing markets. At
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Oil prices dipped in early trade on Friday, extending the week’s losses as concern over tight supply was outweighed by escalating fear of sharp interest rate hikes slamming global growth and hitting fuel demand. Brent crude futures fell 22 cents, or 0.2%, to $90.62 a barrel as at 0052 GMT after sliding 3.5% to a
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The Canadian dollar is at an interesting spot on the global spectrum of risk assets at the moment. Domestically, it’s been a good year with strong GDP growth as the economy reopened from covid. Commodity investment has picked up and terms of trade have improved. For much of the year, that kept the loonie neck-and-neck
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Selloff in Pound catches most currency related headlines today, as it slumped to a 37-year low against Dollar. The decline came after data showed retail sales contracted in both volume and value term in August, indicating that inflation was already biting into spending. In the background, the UK economic is already in recession. Still for
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The always awesome US Market Open roundup via Newsquawk Full Note – incl Podcast Euro-bourses see the deepest losses whilst the FTSE 100 is cushioned by the slide in the Pound GBP extended losses in wake of significantly weaker than forecast ONS retail sales data, with Cable sliding to the lowest level since 1985 10yr
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Overall, Dollar remains the strongest one for the week, followed by Swiss Franc and then Yen. Risk aversion support these currencies, on the expectation of another jumbo rate hike by Fed next week. Commodity currencies are the worst performers with Kiwi having an underhand. Euro and Sterling are mixed for now, with Euro having a
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AUD/USD has hit its lowest since the middle of July NZD/USD is faring relatively worse, hitting its lowest since May of 2020. — ANZ on the Australian vs the New Zealand dollar: Markets are factoring in military gains by Ukraine and putting UK political uncertainty behind them, and the AUD is rising to the fore
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Gold prices inched lower on Thursday, as a firmer dollar and expectations of big interest rate hikes from the U.S. Federal Reserve diminished the metal’s appeal. FUNDAMENTALS Spot gold fell 0.1% to $1,693.81 per ounce, as of 0110 GMT. U.S. gold futures were down 0.3% at $1,704.4. The dollar index edged 0.1% higher towards recent
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