All Articles Tagged - US500cash

US Open Note – Market in a volatile day; dollar surges to more than 1 ½ -year high

Posted on January 28, 2022 at 1:55 pm GMT

PCE price index ticks up; Rates in US rise December’s PCE data came into focus today from investors. The core PCE price index rose from 4.8% to 4.9% year-on-year. Currently, it is the highest since September 1983 and well above the Fed’s 2% goal rate. Personal income and spending also came in at 0.3% and -0.6% m/m respectively. Because of the widespread distribution of the omicron variety, retail sales and consumption decreased in December of last year. Rates in the United States are rising, [..]

US Open Note – Fed’s ‘hawkish’ tone sends the dollar surging

Posted on January 27, 2022 at 2:00 pm GMT

Powell signals a rate hike in March The first FOMC meeting of 2022 was concluded on Wednesday, with the Fed Chair Jerome Powell setting the stage for a March rate hike, declining to rule out more frequent and larger rate increases. Powell also struck a pessimistic tone regarding the recovery of supply chain disruptions, which are currently driving inflation. However, even if supply bottlenecks subside, the ongoing wage-price spiral could keep inflation elevated throughout 2022, keeping monetary tightening pressures high. [..]

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 [..]

Technical Analysis – US 500 index meets resistance at 200-SMA; bearish outlook

Posted on January 24, 2022 at 8:44 am GMT

The US 500 cash index has witnessed a pullback from its all-time high, reaching a 3-month low amid increasing negative forces. The index has also crossed below its 50- and 200-day simple moving average (SMA), which points towards an overall bearish outlook. However, the price is currently trading below its lower Bollinger Band, indicating that an immediate upside movement should not be ruled out. Short-term momentum indicators are reflecting a mixed picture for the index. The MACD is found below [..]

Will 2022 be a better year for the airline industry? – Special Report

Posted on January 19, 2022 at 10:19 am GMT

Delays and cancellations have featured in another pandemic-stricken quarter for the aviation industry, but compared to the catastrophic 2020, 2021 has been more kind to US airlines according to earnings estimates. Although investors are hoping for a bullish 2022, the road ahead could still be rocky, and frustration could stay in place. American airlines’ Q4 earnings will probably provide more guidance on Thursday before markets open. Airlines see the glass half full The omicron variant has been the latest punch [..]

US Open Note – Stocks retreat and dollar nudges higher as yields spike

Posted on January 18, 2022 at 2:19 pm GMT

Dollar and safe havens shine; loonie amongst the few winners The US dollar is storming higher today, heavily supported by surging Treasury yields, as markets seem to be pricing in four rate hikes by the Fed in 2022. Moreover, the significant losses observed in risky assets due to rising Treasury yields triggered a broader risk-off sentiment in the markets, adding more fuel to the dollar’s rally. In addition, the soaring risk aversion in today’s session favours safe haven currencies such as the Japanese Yen [..]

US Open Note – Ugly retail sales data question Fed tightening; dollar plummets to fresh lows

Posted on January 14, 2022 at 2:25 pm GMT

Stocks to close the week in the red; banking earnings beat estimates Fed policymakers keep throwing cold water on stock markets, highlighting that a faster pace of higher interest rates will be required to cool inflation from March onwards, as persisting pandemic-led supply bottlenecks might create additional price pressures in the coming months.The Fed’s No.2 official Lael Brainard and the Chicago Fed President Charles Evans were the last on the call on Thursday, with tech stocks driving the Nasdaq 100 [..]

US Open Note – Dollar speeds down a slippery slope; stocks steady

Posted on January 13, 2022 at 2:20 pm GMT

Dollar extends inflation decline; initial jobless claims tick higher The latest CPI inflation report out of the United States was not a big surprise on Wednesday. Despite a minor pickup in the core measure, the annual headline gauge came in line with expectations at 7.0% – the highest since 1982. However, investors sold the dollar as three rate hikes by the Fed are already fully priced in to launch potentially after bond tapering ends in March, while a fourth one [..]

US Open Note – Inflation hits its fastest pace in four decades

Posted on January 12, 2022 at 2:16 pm GMT

Powell calms the markets Fears that the US economic expansion could be jeopardized by tighter monetary policy have been alleviated for now, as the Fed Chair Jerome Powell reassured investors that the central bank would bring down inflation without derailing the US economic recovery. Powell also avoided a comment on the timing of rate hikes and stressed that no decision has yet been made regarding the reduction of the Fed’s balance sheet. After his hearing, not much has changed regarding [..]

US Open Note – Stocks set for opening gains; Powell’s testimony in focus

Posted on January 11, 2022 at 1:42 pm GMT

Powell testimony in focus; Bundesbank’s new chief warns on inflation Markets are anticipating Fed Chair Jerome Powell’s renomination hearing in Congress later today, waiting to find out his current views on inflation ahead of the CPI data release on Wednesday. In his prepared remarks, Powell vowed to bring down inflation and warned markets that the ongoing post-pandemic expansion might look different from what they have witnessed before. Earlier today, ECB President Christine Lagarde gave a speech at the ceremony marking the [..]

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