Identifying market trends helps people invest with profit and achieve their financial goals. In 2023-2024, the market trends will be influenced by three high-level factors: U.S. interest rates, growing regional competition, and the new energy balance. The OctaFX...
ECB’s Simkus: Should not rule out the option of a September rate hike
We are not done with hiking ratesToo early to say whether there will be a rate hike in SeptemberMust keep rates restrictive to reach 2% inflation targetAs mentioned earlier, they are not going to relent on the hawkish rhetoric until after we get to July. By then,...
BOE’s Dhingra: UK wages are responding to inflation with a lag
Sharp drop in PPI is promisingThere is a lag between fall in PPI and CPI around one or two quartersFood prices is where inflation remains most stubbornNot very convincing to argue that UK grocery inflation is driven by "greedflation"Well, for their sake, that lagged...
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Market Update – June 27 – Stocks buoyed after yesterday’s drift
Risk appetite started to improve and a 2% bounce in the Hang Seng led Asian markets higher overnight. China Premier warned that economic barriers will lead to confrontation, while he promised the roll out of more effective measures to boost demand. China meanwhile set...
Dollar holds slightly lower so far on the day
The risk mood is calmer on the day but investors are still understandably cautious after the selling from last week. Stocks in Europe have pared gains somewhat after the opening hour and that is not leaving FX traders with much to work with.EUR/USD is up 0.3% to...
ECB’s Lagarde: Inflation remains too high
We are committed to reaching inflation target come what mayWe cannot waver, cannot declare victory yetNeed to bring rates to "sufficiently restrictive" territoryNeed to communicate clearly that we will stay at those levels for as long as necessaryHave not yet seen the...
GBPUSD Technical Analysis – Break or Bounce?
Throughout the previous week, we got many insights from various central bank speakers. The prevailing consensus is that awaiting additional data will help to assess the extent of further tightening. While the majority of the FOMC expects two more rate hikes this year,...
Morgan Stanley sees Fed hiking rates by 25 bps in July
The firm adds that they are also upping their terminal rate forecast for the Fed to 5.375% from the 5.10% previously.I would argue it is still early days and we are yet to hear of anything firm from Fed speakers recently. In any case, the FOMC meeting will be on 26...
Aussie remains buoyed by China boost so far today
Both the aussie and kiwi are leading gains in the major currencies space, with the dollar keeping slightly on the softer side as we get into European trading. China's intervention to defend the yuan today is a notable one that has helped with the risk mood, and mostly...
Trade ideas thread – European session 27 June 2023
Does the latest pullback in equities have more room to run? That is certainly one to watch as we see a continuation of the selling from last week. As mentioned here at the time, it's a question of growth worries and/or quarter-end flows. So, we might not get much...
ECB’s Kazaks: Market bets on rate cuts in early 2024 are wrong
Sees rate hikes going past July as inflation remains too highSoftness of the economy is unlikely to deal with inflationThere are still strong risks of persistence in inflationDon't think that in July we'll be comfortable enough to say "we're done"Until we get to the...
FX option expiries for 27 June 10am New York cut
There aren't any significant expiries to take note of for today. That means trading sentiment will continue to revolve around the risk mood and the technicals for the most part, carrying over the themes from last week as we approach month-end and quarter-end.For more...
It’s pretty much a bare calendar day in Europe
Markets are carrying over the more sluggish mood from last week and that will remain a key theme in trading this week as such. Things are calmer today but just as we saw yesterday, it's still too early to be judging a book by its cover. The overall mood in Asia is...
There are 2 Bank of England Monetary Policy Committee speakers Tuesday – Dhingra, Tenreyro
0815 GMT/0415 US Eastern time: Bank of England Monetary Policy Committee member Swati Dhingra is speaking at the UK Women in Economics Network on "tools for success."Dhingra is one of two rate-setters on the MPC who voted against further increases in borrowing costs...
Reserve Bank of New Zealand’s monetary policy committee remit and charter renewed
New Zealand Finance Minister Grant Robertson: RBNZ monetary policy committee remit and charter renewedOnly minor changes to the monetary policy frameworkMPC now required to achieve and maintain inflation between 1% and 3% rather than keepMPC should communicate key...
China State Banks seen intervening in USD/CNH – supporting the yuan
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,...
Japan finance minister Suzuki says recent FX moves are sharp, one-sided
The 'sharp, one-sided' comments are more firthright than usual. More strident.USD/JPY is getting closer to a level we can expect some actual yen-buying intervention. I've posted earlier on the sort of comments to watch for:Ok, Suzuki's statement: Fx should move stably...
Japan Ministry of Finance personnel reshuffle – yen intervention guy Kanda unmoved
Japan's Finance Ministry's Vice Finance Minister for International Affairs Kanda. He is the guy who will instruct the BOJ to intervene, when he judges it necessary. Often referred to as Japan's 'top currency diplomat'.In a show of stability from the Japanese...
ForexLive Asia-Pacific FX news wrap: PBOC slows the fall in the yuan
The People’s Bank of China fixed the onshore yuan stronger than expected at the reference rate setting today. The expected rate was just shy of 7.22 but the Bank set USD/CNY under 7.21. This was the second day in a row the PBOC had set the CNY stronger than expected....