All Articles Tagged - Fed

US Open Note – As Russia-Ukraine tensions persist, the dollar strengthens

Posted on February 14, 2022 at 2:02 pm GMT

Ukraine tensions and FOMC minutes in focus; dollar rises As the United States fears that an invasion may be approaching, tensions over Russian forces stationed near Ukraine are entering what might be a pivotal week. The United States is warning of an imminent invasion, while President Vladimir Putin has accused America of failing to satisfy his demands. Russia has denied it is preparing to invade Ukraine, and Chancellor Olaf Scholz of Germany is travelling to Kyiv today, a day before visiting Moscow to calm the issue. This week’s focus is on the [..]

Weekly Comment – Central banks await inflation reports, retail sales eyed

Posted on February 11, 2022 at 12:55 pm GMT

It was a highly volatile week for the stock markets as US inflation recorded its biggest annual increase in 40 years, triggering bets for a double interest rate hike by the Fed in March. In the upcoming week, inflation data from various countries will put their central banks’ policies to the test, while retail sales, employment and GDP data are expected to provide invaluable insights into global economic activity. The highlights: Next week the UK, Canadian, Japanese and Chinese inflation data for January will hit the markets. The [..]

US Open Note – Stocks extend gains, dollar retreats amid improving risk tone

Posted on February 2, 2022 at 2:22 pm GMT

Dollar slips; euro and pound advance The dollar continues to lose ground for the third consecutive session as long-term Treasury yields extend their decline and seem unable to gain traction. Moreover, the soaring risk appetite observed in the markets today inflicted further damage on the safe-haven dollar. To make matters worse, the ADP jobs data reported earlier today showed a 301K decrease in private US employment in January versus expectations for a 207K gain, setting the stage for a disappointing [..]

US Open Note – US stocks’ rally eases, dollar slips as yields retreat

Posted on February 1, 2022 at 1:57 pm GMT

Dollar loses ground after Fed officials rule out aggressive hike The dollar’s weakness is resuming today as an increasing number of Fed officials downplayed the possibility of a 50 basis points rate hike in March, suggesting that monetary tightening should be more gradual in order to avoid causing panic in the markets. Moreover, the rebound in global equities, alongside the retreating Treasury yields and a chance for profit-taking after the dollar’s extended rally added further downside pressures on the greenback. Later today, [..]

Weekly Comment – Central bank fiesta, nonfarm payrolls, and economic data barrage

Posted on January 28, 2022 at 10:11 am GMT

The Fed adopted quite hawkish rhetoric in its latest FOMC minutes, triggering risk-off sentiment and causing a severe sell-off in risky assets. In the upcoming week, the latest US employment data alongside central bank meetings in the UK, Australia, and Europe will take center stage, while a raft of economic data releases will also hit the markets. The highlights: In America, nonfarm payrolls will be out on Friday, where a stronger-than-expected report might seal the deal for a more aggressive rate hike timeline, further boosting the USD. Moreover, employment data for [..]

US Open Note – Dollar surges ahead of FOMC decision; stocks back in positive ground

Posted on January 26, 2022 at 1:54 pm GMT

Markets are gradually stabilizing, despite the fact that Russia-Ukraine tensions remain high. The two-day FOMC meeting concludes this afternoon. FOMC meeting ends today The Fed is widely expected to keep a hawkish stance as it prepares the market for a rate lift-off on March 15-16. This year’s three quarterly rate increases have already been factored into the market. In the absence of any new macro projections or Dot Plots, we expect Fed Chair Powell to make a very clear message [..]

US Open Note – Market awaits FOMC meeting, keeps an eye on Ukraine crisis

Posted on January 25, 2022 at 1:52 pm GMT

FOMC minutes attract attention The two-day FOMC meeting begins today and concludes tomorrow with a decision as the global economy is feeling the pain of omicron variant. The Federal Reserve is widely expected to maintain its hawkish stance as it prepares the market for liftoff at its next meeting. Anyone hoping for some form of Fed Put this week will likely be disappointed. The Federal Reserve’s top aim right now is to keep inflation under control. Because the economy is on the verge of reaching full employment and inflation [..]

Fed meeting: Will asset purchases end early? – Forex News Preview

Posted on January 24, 2022 at 4:48 pm GMT

The main event this week will be the Fed’s policy decision at 19:00 GMT Wednesday. No action is expected, but with the markets pricing in four rate increases for this year, the central bank is likely to signal that normalization is imminent. There is also some speculation that asset purchases could come to an immediate end. That will likely decide the reaction in the dollar. Economic boom The US economic recovery has been very impressive. The economy is already much [..]

US Open Note – Dollar eases ahead of FOMC minutes

Posted on January 5, 2022 at 1:27 pm GMT

Investors are expecting the release of the FOMC minutes and, more crucially, the release of non-farm payrolls in the US later this week. Following a robust surge in government bond yields, the yen has remained the currency with the worst performance for the time being. The pound has managed to outperform the euro. Although the dollar is the second strongest currency, it is still stuck in a range, except against the yen. FX market view and FOMC minutes expectation The dollar is weakening ahead of the ADP employment [..]

US Open Note – Dollar hits five-year high against yen; OPEC next on the radar

Posted on January 4, 2022 at 1:45 pm GMT

Omicron virus does not affect economic recovery Despite concerns about the extremely contagious omicron virus subtype, investors are focusing on the economic recovery from the pandemic and central bank’s plans for stimulus reduction at this time. In the FX market, the focus today is on dollar/yen, which surged to a new five-year high of 116.33 as risk-on sentiment pressed safe-haven currencies such as the yen. It may be difficult for sellers to reverse the trend. The BOJ will stay the most dovish, so the weak [..]

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