Dollar is slightly softer today as the financial world holds its breath for FOMC rate decision. With the market strongly anticipating a hold, eyes will turn to the dot plot for insights. The pivotal question remains: Will there be hints of another rate hike slated for this year? Furthermore, how the dot plot for 2024
An eagle sculpture stands on the facade of the Marriner S. Eccles Federal Reserve building in Washington, D.C. Andrew Harrer | Bloomberg | Getty Images A looming government shutdown could prevent the Federal Reserve from raising rates in November, but not for the reason you might think, according to Bank of America. Not only would
Share: Markets have already written the script for the Fed today: a hawkish hold, and an unchanged 2023 dot plot. Any FX action would depend on potential revisions to the 2024 dots, economists at ING report. FOMC not a huge event for the Dollar The overall message by the Fed should be supportive of the
Crude Oil surged to new highs as the supply side got squeezed even more by resilient demand and more production cuts. In fact, the OPEC continues to forecast robust growth for oil demand in 2023 and 2024 while keeping supplies tight as Saudi Arabia and Russia extended their voluntary production cuts. Moreover, we got some
Gold traded range bound on Wednesday, though the bias remained negative as Street awaits the FOMC policy outcomes, later today. Yellow metal’s slide was despite some weakness in the dollar index (DXY) which was hovering around the 105.14 mark against a basket of six top currencies, down 0.05%. The MCX October gold futures were trading
Well, the softer UK inflation data here raises the odds of the BOE joining the ranks of the Fed and ECB into pausing but not after one last rate hike this week in all likelihood. The odds of a 25 bps move coming into today was at ~80% and while traders may pull back slightly
Asian markets manifested mild risk-off sentiments today, with Nikkei weighing down the broader region. As Japanese investors made their way back from an extended holiday weekend, notable sell-off in chip stocks took place. This reaction was prompted by reports that Taiwan’s premier chipmaker, TSMC, had requested its major vendors to postpone deliveries. Adding to the
Only seven months remain before the next Bitcoin (BTC) halving in April 2024. It happens approximately every four years and is a deflationary process that cuts the production of new coins by 50%. Bitcoin’s halving is a high-profile event for crypto investors, and has historically led to an increase in Bitcoin’s price. However, its impact on
Share: AUD/JPY rallies to 95.64, its highest level in one-and-a-half months, buoyed by RBA’s latest monetary policy minutes. Following resistance levels in sight: July 25 swing high at 95.85 and the psychological 96.00 mark. Downside risks remain, with key support levels at the Ichimoku Cloud top at 94.74 and the Tenkan-Sen line at 94.60. The
The FOMC is expected to keep rates unchanged tomorrow when they meet. As such, traders will be looking for clues for a more hawkish unchanged policy or a more dovish unchanged policy. There are a lot of balls in the air including sticky inflation, but core inflation is starting to calm down. Strikes are popping
Gold prices hit two-week highs on Tuesday, with the U.S. dollar losing its grip on six-month highs scaled last week, with attention focused on the Federal Reserve’s two-day policy meeting that begins later in the day. FUNDAMENTALS Spot gold was steady at $1,932.79 per ounce by 0058 GMT, having hit its highest since Sept. 5
WI level at the time of the auction: 4.592% High Yield: 4.595% Previous: 4.499% Six-auction average: 4.055% Tail: -0.3bps Previous: 0.9bps Six-auction average: -0.2bps Bid-to-Cover: 2.74X Previous: 2.56x Six-auction average: 2.64x Dealers: 9.27% Previous: 11.4% Six-auction average: 10.7% Directs: 25.36% Previous: 20.2% Six-auction average: 19.7% Indirects: 65.36% Previous: 68.4% Six-auction average: 69.7% Auction Grade: A-
Canadian Dollar’s rally gathers additional momentum during early US session, buoyed by data that depicted faster re-acceleration in Canadian inflation than anticipated. It is noteworthy that the surge in headline inflation figure was chiefly influenced by escalating gasoline prices, yet inflation excluding gasoline did not decelerate as BoC would love to see. This scenario is
Share: Economists at ING analyze how Canadian inflation data could impact USD/CAD and BoC’s rate hike expectations. Canadian CPI may put a BoC hike back on the table Any upside surprise in the inflation figures would likely put a BoC rate hike back on the table, even though it is not our base case at
US: The Fed hiked by 25 bps as expected and kept everything unchanged at the last meeting. Fed Chair Powell reaffirmed their data dependency and kept all the options on the table. The US CPI last week came in line with expectations, so the market’s pricing remained roughly the same. The labour market displayed signs
Copper prices edged lower in Asian trading on Tuesday, as the overall mood was subdued ahead of interest rate decisions by central banks this week, with the U.S. Federal Reserve set to begin its two-day policy meeting later in the day. Concerns that faltering post-pandemic economic rebound in China, the world’s top metals consumer, could
German DAX futures -0.1% UK FTSE futures flat After the losses yesterday, it is shaping up to be more of a fairly tepid open in Europe later. This comes as US futures are also little changed after the flattish performance in Wall Street overnight. It’s tough to gather much conviction to start the week, as
Today’s Asian financial markets have shown signs of calmness, partly due to holiday in Japan that has likely tempered trading activities. Dollar and Euro were mildly softer, while Aussie, Kiwi, and Yen exhibited slight strength. However, the fluctuations were confined within the ranges observed last Friday, pointing to the low-volatility environment in currency markets. The