Australia’s June Labour Force Demonstrates Limited Signs of Letting Up
Australia’s June Labour Force Demonstrates Limited Signs of Letting Up Australia’s June labour force showed remarkable resilience, with employment growth exceeding expectations. The month saw an increase of 32.6k jobs, a 0.2% rise that surpassed Westpac’s prediction of a 25k boost and far exceeded the median market forecast of a modest 15k increase. Throughout the […]
The GBP/USD pair continues to experience pressure, hovering near the 1.2920 level
The GBP/USD pair continues to experience pressure, hovering near the 1.2920 level The GBP/USD pair is enduring continuous strain, staying close to the critical 1.2920 level as the European session commences. This stress is fueled by the weaker-than-expected inflation data from the UK for June. The monthly Consumer Price Index (CPI) saw a mere increase […]
RBNZ Maintains Wait-and-See Approach Despite CPI Indications
RBNZ Maintains Wait-and-See Approach Despite CPI Indications The Reserve Bank of New Zealand (RBNZ) continues to adopt a cautious approach, refraining from making immediate changes to its monetary policy despite the latest inflation data. This wait-and-see stance comes even as the Consumer Price Index (CPI) shows signs of an inflationary trend. In parallel news from […]
Inflation hits 6% amid falling petrol prices and high-interest rates, despite sustained domestic inflation
Inflation hits 6% amid falling petrol prices and high-interest rates, despite sustained domestic inflation Inflation in New Zealand dropped to an annual rate of 6% in the June quarter. This decline was largely driven by high interest rates affecting household budgets and a decrease in petrol prices. However, domestic inflation remains stubbornly high, despite these […]
US Retail Sales Might Not Aid Dollar Recovery
US Retail Sales Might Not Aid Dollar Recovery The upcoming release of June’s retail sales data by the U.S. Census Bureau, scheduled for Wednesday at 12:30 GMT, may not provide the much-needed boost to the ailing dollar. The data, which accurately reflects consumer demand, will be analyzed closely as the Federal Open Market Committee (FOMC) […]
US Inflation Slows; Equity Markets Rally on Earnings News
US Inflation Slows; Equity Markets Rally on Earnings News The slowing down of US inflation has been a welcome development in the financial markets. Along with positive earnings news, this has contributed to a robust rally in equity markets. The EUR/JPY pair, however, has seen only a slight recovery from its intraday low, hovering around […]
Mild Inflation and Robust Profits Drive Stock Market Surge
Mild Inflation and Robust Profits Drive Stock Market Surge US inflation news has been favorable this week, with data revealing a slowdown in both headline inflation at 3% and core inflation at 4.8%, both below expectations. Producer price inflation also came in lower than anticipated. These positive figures may be the last before they potentially […]
Challenges Remain Despite Significant Progress in US Inflation
Challenges Remain Despite Significant Progress in US Inflation Headline inflation has reduced to a fraction of its peak, yet the contribution from shelter alone exceeds the Federal Open Market Committee’s (FOMC) annual target of 2.0%. In June, both headline and core Consumer Price Index (CPI) outcomes fell short of expectations at 0.2%, resulting in respective […]
AUD/JPY Cross Gains Momentum, Surpassing 100-hour SMA after Hitting Two-day High
AUD/JPY Cross Gains Momentum, Surpassing 100-hour SMA after Hitting Two-day High The AUD/JPY cross is showing signs of momentum, pushing past the 100-hour Simple Moving Average (SMA) and reaching a two-day peak. This trend mirrors the progress of the EUR/USD pair, which is also advancing towards a fresh 2023 high close to 1.1150. The performance […]
Allianz’s Subran Warns of Increased Risk of Policy Mistakes from Fed or ECB
Allianz’s Subran Warns of Increased Risk of Policy Mistakes from Fed or ECB Ludovic Subran, Chief Economist at Allianz, has warned of the potential for policy missteps by US or euro-zone policymakers as they seek to tighten monetary conditions. Such errors could pose a serious threat to the global economy. During an interview with Bloomberg […]
Bank of Japan’s Chief Defends Monetary Easing Amid Yen’s Decline
Bank of Japan’s Chief Defends Monetary Easing Amid Yen’s Decline Kazuo Ueda, the current head of the Bank of Japan, has publicly supported the institution’s continuous implementation of monetary easing policies, despite the ongoing depreciation of the yen. He justified this by pointing out that, although the headline inflation rate is above the set target […]
Ahead of Significant Data Releases, US Dollar Continues its Rally
Ahead of Significant Data Releases, US Dollar Continues its Rally The US Dollar (USD) is maintaining its strength against other currencies as it continues to rebound. The US Dollar Index remains near two-week highs around 103.00 after a surge on Wednesday. Today, the European Commission will release June’s business and consumer sentiment data during the […]
US Yields Climb as Fed’s Powell Reinforces Commitment to Addressing Inflation
US Yields Climb as Fed’s Powell Reinforces Commitment to Addressing Inflation Following Federal Reserve Chair Jerome Powell’s speech, which reinforced the central bank’s dedication to addressing inflation and achieving the 2% target, US Treasury yields experienced a rise. The yield curve inversion between two-year and 10-year Treasury notes intensified, implying that investors expect further rate […]
One Step Closer to Debt Ceiling Deal – And a Fed Hike
One Step Closer to Debt Ceiling Deal – And a Fed Hike The holiday shortened trading week starts tense but on an optimistic note as US President Joe Biden and House Speaker Kevin McCarthy finally reached an agreement to raise the debt ceiling. The deal must get approval in a congressional vote on Wednesday. US […]
Gold Price Forecast: XAU/USD could rebound to $2,005 if 50 DMA support holds
Gold Price Forecast: XAU/USD could rebound to $2,005 if 50 DMA support holds Gold price is replicating the moves seen in Wednesday’s Asian trading, making headways for a minor recovery toward $2,000 early Thursday. The retreat in the United States Dollar (USD) and the US Treasury bond yields supports Gold price. US Dollar steadies as […]
Euro Having Harder Time Against Both Dollar and Sterling
Euro Having Harder Time Against Both Dollar and Sterling The University of Michigan consumer confidence for the month of May unexpectedly set the tone for last week’s trading session WS. The overall indicator fell more than expected, from 63.5 to 57.7, the lowest level since last July. However, markets focused on the prospective inflation expectations […]
Riksbank to Deliver 50bp Rate Hike Today
Riksbank to Deliver 50bp Rate Hike Today Today’s main event will be the Riksbank’s policy rate decision at 9:30 CET, where we expect a 50 basis point hike in line with market prices. We also expect the Riksbank to announce another rate hike in June (more on this in the Nordic section). On the data […]
German and Spanish Inflation Prints in Focus
German and Spanish Inflation Prints in Focus The main focus today will be on the German and Spanish flash inflation data, which will provide the first sense of what to expect from the euro area HICP figures tomorrow. Generally, we forecast gradually easing headline inflation, but see core inflation pressures still remaining at elevated levels. […]