All Articles Tagged - Fed

US Open Note – Dollar flattens after busy week; lira plummets

Posted on December 17, 2021 at 2:00 pm GMT

FX market in the spotlight After a very busy week with numerous central bank meetings, the week is ending with a bearish mode. The dollar index continues its sideways movement around 96, while dollar/yen is heading south approaching the 113.00 round number. The euro rally peaked near $1.1350 and is now trading near $1.1300, while sterling has given up much of its post-BoE gains and is trading below $1.33. US futures are suggesting a negative open today. Central banks sum up The Fed’s shift to a more hawkish stance [..]

US Open Note – Market sentiment remains tentative ahead of central bank meetings

Posted on December 14, 2021 at 2:20 pm GMT

Dollar slips ahead of FOMC The dollar is slightly softer on the day despite surging Treasury yields and soaring risk-off sentiment in global markets triggered by the resurgence of Omicron jitters. The driving force behind this pullback is growing doubts that the Omicron outbreak will have a minimal impact on the global economy. In addition, data released just now – a day before the Fed’s decision – showed that producer prices in the United States jumped more than expected in November, fueling concerns about tighter [..]

US Open Note – Quiet day ahead of raft of central bank meetings

Posted on December 13, 2021 at 2:02 pm GMT

It’s a relatively quiet start to the week before the expected onslaught of central bank meetings that will take place this week. On Monday, US futures gained along with European stocks as traders braced for a week of central bank decisions amid fears about inflation and the omicron virus. Fed, ECB and BoE meetings in the spotlight this week The Federal Reserve is anticipated to accelerate its stimulus withdrawal on Wednesday and could pave the way for quicker interest rate hikes in 2022 if price pressures remain around a [..]

Weekly Comment – Markets grapple with uncertainty as Omicron variant spreads

Posted on December 3, 2021 at 12:11 pm GMT

It was a highly volatile week for the global stock markets as investors were trying to assess the risks posed by the new Omicron variant as well as the Fed’s hawkish pivot. In the upcoming week, the Reserve Bank of Australia and Bank of Canada interest rate decisions will be in the spotlight, alongside the US CPI report. The highlights: In Australia, the RBA is widely anticipated to keep interest rates unchanged on Tuesday. However, the Reserve Bank is likely to remain cautious overall, which poses another [..]

US Open Note – Markets dive as new Covid variant identified

Posted on November 26, 2021 at 1:57 pm GMT

FX market is bleeding due to new variant; yen shines After the discovery of a new and possibly vaccine-resistant coronavirus variant in South Africa, Botswana, and Hong Kong, the FX market is posting strong losses and US stock futures are indicating a negative open. Flights from South Africa and other nearby countries have already been temporarily banned by Britain, which was followed by Israel and Singapore, and could lead to similar bans in other countries. The introduction of the new variant comes at a time when different European countries are coping [..]

US Open Note – Dollar shines again as gold and lira prints losses

Posted on November 23, 2021 at 2:10 pm GMT

Biden’s Fed picks drives dollar up The Fed nomination decision caused some tremors in the financial markets on Monday. In the decision’s wake, futures markets have firmed up expectations for a rate hike in June, which had previously been biased towards July. Governor Brainard has been selected to replace Clarida as Vice Chair at the end of January next year. The US dollar index is extending its gains towards a fresh 16½-month high of 96.59, while dollar/yen is hovering slightly below the four-and-a-half year high of 115.15 that it posted earlier in [..]

US Open Note – US dollar kicks off the week higher as hawkish talk increases

Posted on November 22, 2021 at 2:02 pm GMT

US dollar slopes upwards amid upcoming monetary tightening The dollar’s upsurge seems to be continuing this week fueled by the Fed’s Vice Chair Richard Clarida, who signaled an imminent acceleration of the tapering program that could eventually result in earlier rate hikes. In addition, the greenback has also benefited from the rebound in Treasury yields today. However, President Biden is expected to reveal his nomination for the Fed’s chair before Thanksgiving on Thursday, where a possible designation of the more ‘dovish’ Brainard might push [..]

US Open Note – Dollar eases awaiting new market movers; Turkish lira plummets

Posted on November 18, 2021 at 1:57 pm GMT

Initial jobless claims come out; dollar still falling US jobless claims declined by one thousand in the week ending November 13th, a new pandemic low as the labor market continues to slowly recover from the coronavirus hit. The US dollar index is continuing the selling interest that started on Thursday, flirting with 95.60. Dollar/yen is hovering above 114.00 after posting a new high yesterday. Euro/dollar is jumping above the 16-month low of 1.1263, recouping some losses, while pound/dollar is approaching 1.3500. US stock futures are heading for a [..]

US Open Note – Dollar continues march higher after the US retail sales release

Posted on November 16, 2021 at 2:04 pm GMT

US retail sales ticks up US retail sales are the highlight of today. The figure climbed by 1.7% m/m for October as compared to 0.8% in the previous month, driving the greenback higher. Despite supply issues and delivery delays, there is a strong belief that customers will begin their holiday shopping earlier this year. Vice President Biden has made his selection for the position of Chairman of the Federal Reserve. Powell is the most qualified candidate, even though Brainard has [..]

US Open Note – Greenback slips as Fed tapering starts

Posted on November 15, 2021 at 2:04 pm GMT

Fed tapering begins According to the FOMC meeting of November 2-3, tapering will begin this week as planned. The New York Fed announced its modified bond-purchase schedule last week, confirming that tapering will start this month. Until June, the Federal Reserve intends to keep reducing its purchases by $15 billion each month. There is a possibility of a change in tapering speed, but the Fed has indicated that it will only do so if it is necessary. Futures for the Fed Funds rate are still pricing in a Q2 liftoff of roughly two-thirds, while [..]

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