All Articles Tagged - Fed

Dollar reverses gains after mixed US durable goods orders

Posted on May 26, 2016 at 2:41 pm GMT

Durable goods orders sent mixed messages about the US economy today as a jump in total new orders in April was overshadowed by a drop in the core measure. Total new orders for manufactured goods meant to last for at least three years jumped by 3.4% month-on-month in April, beating estimates of 0.5%. The figure is even stronger when looking against the prior month’s reading which was revised up from 1.3% to 1.9%. However, the solid headline figure was accompanied [..]

Asian Session – Brent crude tops $50 for first time in 7 months; dollar slips below 110 yen

Posted on May 26, 2016 at 8:20 am GMT

Crude oil prices extended their rally into a third day on Thursday as Brent crude broke above $50 a barrel for the first time in nearly 7 months. US oil futures also rose to fresh 7-month highs, stopping just shy of $50. Oil prices were boosted yesterday after data from the US Energy Information Administration showed a bigger-than-expected drop in crude stocks for the week ending May 20. Other commodities also moved higher, helping energy and commodity stocks to make [..]

European Session – Sterling outperforms on new Brexit poll, dollar firms up on Fed rate hike expectations

Posted on May 24, 2016 at 2:39 pm GMT

The British pound was the top performing G10 currency so far today, making a notable move higher as the “remain” camp gains momentum. The latest Daily Telegraph poll showed supporters of the UK remaining in the EU has a 13 percentage-point lead over those favouring Brexit. Sterling rallied against the dollar to reach a high of $1.4621 while the euro fell to a 3-1/2 month low against the pound at 76.32 pence. Aside from the favourable Brexit polls, the pound [..]

European Session – Euro struggles at $1.12 on firmer dollar after Fed speakers boost rate hike expectations

Posted on May 23, 2016 at 2:49 pm GMT

The euro underperformed today and fell below the key $1.12 level as disappointing Eurozone PMI data and a broadly stronger greenback weighed on the single currency. The euro dropped to as low as $1.1186 after having reached an early European session high of $1.1238. The flash version of Eurozone manufacturing and services PMI missed forecasts for May and raised concerns about the health of the region’s economy. The composite PMI registered at a 16-month low of 52.9 versus a prior [..]

Fed surprises markets with hawkish speakers – minutes

Posted on May 20, 2016 at 2:09 pm GMT

The key development of the previous few days has been the shift in expectations about a possible Fed rate hike during the June / July period. Whereas markets even a week ago attached a very low probability to a rate hike in the next two months, following this week’s Fed speakers and the release of the minutes from the April FOMC meeting, this perception has changed. The result of this has been renewed strength of the US dollar, as the [..]

Week Ahead – Busy week for PMI and GDP data; Fed speakers also eyed

Posted on May 20, 2016 at 12:55 pm GMT

Preliminary PMI readings for the Eurozone will be among the main data releases of the coming week along with second estimate GDP for the first quarter for the UK, the US and Germany, as well as Japanese inflation. The US calendar will be the busiest with housing data and durable goods orders also due. However, upcoming speeches from several Fed officials could attract more attention given the recent strong signals coming from the Fed lately on a possible June/July rate hike. [..]

Asian Session – Dollar pauses for breath but oil heads back up again

Posted on May 20, 2016 at 8:21 am GMT

Fed rate hike talk continued to dominate the market theme on Friday but the dollar took a pause on the week’s last day of trading. On Thursday, New York Fed President William Dudley further reinforced expectations that the Fed could raise rates in June or July. Dudley said the Fed is “on track to satisfy a lot of the conditions” adding that he was surprised that the markets had not priced a higher probability of a rate rise. The dollar [..]

Fed minutes alert markets to possible June rate hike; dollar charges higher

Posted on May 19, 2016 at 11:43 am GMT

The meeting minutes of the FOMC’s April policy meeting published yesterday delivered a wake-up call to the markets, who had all but priced out a rate hike in June. The minutes gave a more confident assessment than what the markets were anticipating on the likelihood of inflation returning to the Fed’s 2% target in the medium term. The Committee also set out a specific set of conditions that if met by June, would form a strong case for a rate increase [..]

Asian Session – Dollar near 2-month highs as Fed minutes leave door open for June hike

Posted on May 19, 2016 at 7:40 am GMT

Hawkish minutes by the Fed drove the dollar higher towards two-month highs in early Asian trading on Thursday as investors re-adjusted their expectations of a June rate hike. In the minutes of the April policy meeting, FOMC participants agreed that if the incoming data points to higher second quarter growth, improving labour market conditions and inflation rising towards the Fed’s 2% target, then it would be appropriate for the Committee to increase the Fed Funds rate in June. Several Fed [..]

US consumer prices post biggest monthly gains since 2013; dollar mixed

Posted on May 17, 2016 at 2:10 pm GMT

Consumer prices in the United States posted their biggest month-on-month increase in April since February 2013, adding to the evidence of steadily rising inflationary pressures in the country. CPI in April was up 0.4% from the previous month – the biggest increase in three years and above forecasts of 0.3%. On an annual basis, CPI rose by 1.1% – in line with estimates but up from 0.9% in March. The core rate, which excludes food and energy items, also quickened [..]

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