All Articles Tagged - Fed

Can US GDP stats keep the dollar’s rally going? – Forex News Preview

Posted on April 27, 2022 at 1:55 pm GMT

The US dollar continues to reign supreme, capitalizing on bets for rapid-fire Fed rate increases and the troubles in other economies. Growth data for Q1 are out on Thursday and will reveal the early impact of the war in Ukraine. The numbers could be crucial for market expectations ahead of next week’s Fed meeting and by extension, for whether euro/dollar can sink towards parity. Dollar keeps going The relentless rally in the US dollar shows no signs of slowing down. [..]

US Open Note – ECB confirms intention to cease bond purchases; US retail sales come out

Posted on April 14, 2022 at 1:05 pm GMT

ECB left interest rates unchanged; euro back near $1.0870 The European Central Bank left interest rates unchanged as expected. Policymakers stated that new data confirmed their view that net asset purchases will be completed in the third quarter. During the April 2022 meeting, the central bank also emphasized that any interest rate adjustments will take place sometime after the completion of the asset purchase program and will be gradual in nature. In the meantime, the main interest rates were held [..]

US Open Note – Russia-Ukraine peace talks remain in focus; US ADP figure rise and GDP revised slightly down

Posted on March 30, 2022 at 1:01 pm GMT

US ADP and GDP figures come out The ADP employment figure was the main release out of the US today. Private payrolls rose by 455K people in March, slightly over market expectations of 450K and it follows an upwardly revised 486K in February. As a result, the unemployment rate is predicted to fall to 3.7% in the NFP report on Friday, while average hourly earnings are expected to increase by a few percentage points year-on-year, to 5.5%. The consensus forecast is for 490k jobs in March, down from 678k in [..]

Daily Market Comment – Dollar cools, equities storm back ahead of Fed decision

Posted on March 16, 2022 at 9:44 am GMT

Fed set to raise interest rates today, dot plot to drive markets Global stocks come back swinging, euro licks its wounds Russia might default on debt, Germany announces spending plans Fed – talk is cheap The Federal Reserve is widely expected to raise interest rates today. A quarter-point rate hike is already fully priced in, so the market reaction will boil down to what Chairman Powell says during his press conference, the details around balance sheet reduction, and the updated [..]

Weekly Comment – Fed and BoE meetings awaited amid intensifying ceasefire negotiations

Posted on March 11, 2022 at 2:22 pm GMT

It was a highly volatile week for markets as investors constantly assessed the developments over the Russian invasion of Ukraine. In the upcoming week, the spotlight will turn to the Fed’s, BoE’s and BoJ’s monetary policy decisions, while inflation and employment reports will also hit the markets. The highlights: In America, the Fed is anticipated to proceed with its first rate increase in the post-Covid-19 era on Wednesday, in its effort to tackle the persistently high inflation, which reached a 40-year peak of 7.9% in February. [..]

Week Ahead – Fed and BoE meet as inflation fears intensify

Posted on March 11, 2022 at 12:42 pm GMT

Global markets descended into turmoil after Russian forces rolled into Ukraine. Commodity prices have gone through the roof and traders are betting this shock will keep the inflationary fire burning for some time. The Fed and the Bank of England are set to raise interest rates next week to combat spiraling prices, although the most crucial variable for their respective currencies may be whether there’s a ceasefire in the war. One big trade Ever since the Russian invasion, financial markets [..]

How could the dollar react to another inflation spike?– Forex News Preview

Posted on March 8, 2022 at 4:51 pm GMT

US CPI inflation readings for February will be out on Thursday at 12:30 GMT, likely generating more anxiety for Fed policymakers amid the Ukrainian geopolitical nightmare as price pressures are expected to have intensified further. The US dollar is trading in secure territory and another upbeat inflation report could strengthen calls for a faster monetary tightening once again, making the reserve currency shine brighter. Powell previews March rate decision US consumer prices experienced their highest annual growth in 40 years in January, led by energy, [..]

US Open Note – Dollar roars and US futures retreat as Russian invasion escalates

Posted on March 4, 2022 at 1:59 pm GMT

Dollar extends gains amid increasing risk aversion; euro bleeds Markets continue to trade on geopolitics today since the cease-fire negotiations between Russia and Ukraine remain unsuccessful, while Western allies are considering even tougher financial sanctions for Russia. Moreover, the Russian attack on the biggest nuclear power plant in Europe in the Ukrainian district Zaporizhia triggered fears over an environmental disaster, causing a broader sell-off in risky assets. Later today, investor sentiment got another hit from media reports stating that Russia [..]

US Open Note – Dollar and US futures head north as Russian invasion lingers

Posted on March 3, 2022 at 2:21 pm GMT

Dollar shines but euro slips on geopolitics The ongoing Russian invasion in Ukraine, alongside the tough Western sanctions and their imminent effects on the global economy continue to be the key drivers for the markets today. Although a new round of negotiations between the two countries is taking place at the moment of writing, there are not any concrete signs of de-escalation so far, thus volatility is expected to remain high. These recent developments in the Ukrainian crisis seem to [..]

Dollar recovers ahead of Fed minutes and retail sales – Forex News Preview

Posted on February 15, 2022 at 4:12 pm GMT

Traders are betting the Fed will take a sledgehammer to crush inflation, but that wasn’t enough to really boost the dollar until fears of armed conflict in Ukraine sent investors into the reserve currency’s safety. The latest retail sales data will hit the markets on Wednesday alongside the minutes of the most recent Fed meeting, and how the dollar reacts could reveal whether the rally is truly exhausted. Lackluster dollar With US inflation continuing to accelerate, markets are betting the [..]

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