Initial jobless claims steadyPrior week 221K. That remained unrevisedInitial jobless claims came in as expected at 227K. That is an increase of 6000 from the previous weeks on revised 221K4 week moving average 228.25K a decrease from 233.75K last weekContinuing claims...
US Q2 unit labor costs +1.6% vs +2.6% expected
Advance reading was +4.2%Prior reading was +6.3%Q2 productivity +3.7% vs +2.0% expectedThis is a great report for the Fed as unit labor costs continue to fall and productivity improves. These things are notoriously tough to measure so take them with a grain of salt...
ISM non-manufacturing highlights the economic calendar, but jobless claims are up first
The ISM services data is the highlight of the economic calendar today, with the consensus showing a slip to 53.0 from 53.9.That's at 10 am ET along with factory orders but before that -- at 8:30 am ET -- we get weekly jobless claims and Q2 unit labor costs.Following...
Fed’s Barkin: Further economic slowing ‘is almost surely on the horizon’
Inflation remains too highFed's objective isn't to cause a recession but to reduce inflationConsumer spending, while weaker, is 'far from weak'Efforts to address inflation have pushed several industries into 'mini-recessions'I don't see anything relevant...
The JPY is the strongest and the GBP is the weakest as the North American session begins
The strongest to the weakest of the major currenciesThe JPY is the strongest and the GBP is the weakest as the North American session begins. The Bank of England (BoE) hiked interest rates by 25 basis points (bps), moving the bank rate to 5.25%. The decision was in...
ForexLive European FX news wrap: Pound deflated as BOE delivers a 25 bps rate hike
Headlines:Markets:JPY leads, GBP lags on the dayEuropean equities lower; S&P 500 futures down 0.3%US 10-year yields up 6 bps to 4.138%Gold up 0.1% to $1,934.61WTI crude down 0.2% to $79.30Bitcoin flat at $29,121The pound was the focus of the session as the BOE...
Ethereum Technical Analysis – Watch these key support levels
Ethereum has been struggling recently as the monetary conditions started to tighten more with the US Dollar gaining across the board and global bond yields rallying. Strong data are making the market to lean on the more hawkish side as the Fed kept all the options on...
I don’t think there was a case for a 50 bps rate hike today – Bailey
BOE is evidence-drivenIt is not the right time to declare that "we are done" with rate hikesIf there is more evidence of persistent inflation, we will raise rates furtherBut again, there is more than one path to deliver inflation targetThe question posed was whether...
BOE’s Bailey: I do not agree that we have lost control of inflation
There are two substantial base effects that will bring inflation down this yearThe economy has been much more resilient, that is good newsWe were sitting here in November saying it was going to be a long recessionAnd that has not transpiredUnemployment has remained...
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BOE’s Bailey: I will not judge what the path of rates will be
There is more than one path for rates that may deliver inflation back to targetWe will judge what is most appropriate based on evidenceWe have to balance the risks; there are risks both waysEconomic projections have weakened since MayHe doesn't want to give much away...
BOE’s Bailey: We expect food price inflation to fall gradually this year
Food inflation appears to have peakedWe expect inflation to fall to around 5% in OctoberServices inflation brings "unwelcome news" since May thoughHe is still just reading from the statement mostly for now. We'll get to the Q&A later for the more interesting bits...
US July Challenger layoffs 23.70k vs 40.71k prior
Prior 40.71kUS layoffs fall to the lowest level in nearly a year and this marks the first year-on-year decrease in job cuts since May 2022. That said, there is still more than three times as many announced job cuts so far this year (481,906) compared to the first...
Just a minor shift in BOE rates pricing right after the decision
Here's a look at how the OIS curve has shifted before and after the BOE policy decision today:It's not much of a change in general as the BOE continues to allude to the fact that they are going to keep tightening policy further so long as the data suggests so. That is...
Bitcoin Technical Analysis – Risk of a selloff is high
Bitcoin has been struggling recently as the monetary conditions started to tighten more with the US Dollar gaining across the board and global bond yields rallying. Strong data are making the market to lean on the more hawkish side as the Fed kept all the options on...
BOE raises bank rate by 25 bps to 5.25%, as expected
Prior 5.00%Bank rate vote 8-1 vs 7-2 expected (Dhingra dissented, Haskel and Mann voted for 50 bps)Current monetary policy stance is restrictiveLabour market remains tight but there are some indications that it is looseningCPI inflation remains well above the 2%...
US credit rating downgrade concerns are valid but I’m not worried – Warren Buffett
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...
GBPJPY Technical Analysis – Waiting for the BoE
The UK CPI missed expectations across the board and triggered a big repricing in interest rates expectations. In fact, the market was pricing a higher chance of a 50 bps hike prior to the report given the higher wages data in the previous UK employment report. Now,...
Pound eases lower ahead of BOE policy decision
Cable is now seen slipping to the lows for the day at 1.2650, roughly down by 0.5% on the day. It has been a steady climb lower for the currency pair from around 1.2700 at the start of European morning trade. Is this a sign that traders are hedging their bets that the...
ECB’s Panetta: It is too early to commit now on what to do in September
High risk warning: Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives,...