The Fed hiked interest rates by 25 bps as expected leaving the policy statement unchanged. Tha market was more focused on hints and clues on the next Fed moves but it got disappointed as Fed Chair Powell has just reaffirmed their data dependency and kept all options...
Bavaria July CPI +6.1% vs +6.2% y/y prior
Hesse CPI +6.1% y/yPrior +6.1%Brandenburg CPI +% y/yPrior +6.7%The state readings so far are reflecting just a marginal decline in headline annual inflation from June to July. This does fit with estimates for the national reading later, which is expected to fall from...
Germany Q2 preliminary GDP 0.0% vs +0.1% q/q expected
Prior -0.3%After the negative growth in Q1, the German economy isn't faring that much better in Q2 with a flat showing. But amid the recent concerns and deepening manufacturing recession, don't be surprised to see heightened risks of a stronger downturn in the euro...
MoneyExpo India 2023: Bringing Leading Forex and Stock Companies
MoneyExpo India 2023, the premier finance event of the year, is delighted to announce the participation of an impressive lineup of both forex and stock companies. Taking place at the prestigious Jio Convention Centre in Mumbai, India, MoneyExpo India 2023 promises to...
Baden Wuerttemberg July CPI +6.8% vs +6.9% y/y prior
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,...
BOJ’s Ueda: We aim to rely on markets to determine long-term rates but there are limits
The 0.50% to 1.00% frame is to respond to future risksNow, we have added room to deal with upward moves in interest ratesPolicy decision not biased towards tighteningThe 1.00% mark is defined as a "just in case" capIt is appropriate to maintain strong monetary...
European equities hold slightly lower at the open today
Eurostoxx -0.3%Germany DAX -0.3%France CAC 40 -0.4%UK FTSE +0.1%Spain IBEX +0.2%Regional stocks got a boost from the ECB yesterday, not before the BOJ report here sent equities reeling in Wall Street trading. Higher yields today is also part of the equation after the...
AUDUSD Technical Analysis – The bearish bias remains intact
The AUDUSD resumes its fall as the US data remains hot. The Fed raised rates by 25 bps as expected and kept the policy statement unchanged. The market was eager to see if the Fed Chair Powell could offer some forward guidance but got disappointed as he just reaffirmed...
Switzerland July KOF leading indicator index 92.2 vs 90.5 expected
> Switzerland July KOF leading indicator index 92.2 vs 90.5 expected Latest data released by KOF - 28 July 2023 <!--> Justin Low Friday, 28/07/2023 | 07:00 GMT-0 28/07/2023 | 07:00 GMT-0 --> <!--> Prior 90.8; revised to 90.7 ADVERTISEMENT - CONTINUE...
Spain July preliminary CPI +2.3% vs +1.6% y/y expected
Prior +1.9%HICP +2.1% vs +1.6% y/y expectedPrior +1.6%This isn't a positive development as we also see core annual inflation rising from 5.9% in June to 6.2% in July. This continues to suggest that while there might be some hope for lower price pressures down the...
Spain Q2 preliminary GDP +0.4% vs +0.4% q/q expected
Prior +0.6%; revised to +0.5%That's a decent performance by the Spanish economy once again and it remains one of the few bright spots in Europe. That said, the struggles in the region coming into Q3 is starting to take a stronger toll and it is no exception to the...
France July preliminary CPI +4.3% vs +4.3% y/y expected
Prior +4.5%HICP +5.0% vs +5.1% y/y expectedPrior +5.3%The slightly lower readings here compared to June is a welcome development for the ECB, after yesterday's change in language. At this juncture, even if there is to be another rate hike after the summer, it will...
BOJ’s Ueda: Not expecting long-term yields to rise to 1%
Will respond to speed and level of long-term rates if they move beyond 0.50%There is still a distance to achieving 2% inflation targetAs mentioned in my earlier posts, it is now a test of the BOJ's appetite to see how much they can tolerate. But at the balance, any...
Bond market angst after the BOJ adjustment earlier
It's not just Japanese yields that are rising today in the aftermath of the BOJ. The impact is reverberating as asset managers and fund houses will have to start thinking more about the longer-term repercussions as well. For now, we are seeing a more immediate impact...
BOJ governor Ueda: Need to patiently continue monetary easing to support the economy
> Central Banks > BOJ governor Ueda: Need to patiently continue monetary easing to support the economy Central Banks BOJ governor, Kazuo Ueda, begins his press conference <!--> --> Justin Low Friday, 28/07/2023 | 06:35 GMT-0 28/07/2023 | 06:35 GMT-0...
FX option expiries for 28 July 10am New York cut
There is just one to take note of, as highlighted in bold.That being for EUR/USD at the 1.1000 mark. Given recent price action since yesterday, the expiries may serve as a defensive layer for sellers to keep price pinned lower in the session ahead. The euro also has...
USDCAD Technical Analysis – Watch this support level for the next move
The Fed hiked interest rates by 25 bps as expected while keeping the policy statement basically unchanged. The market was more focused on the Powell’s press conference to see if he was going to give some forward guidance. Unfortunately, Fed Chair Powell just repeated...
North Rhine Westphalia July CPI +5.8% vs +6.2% y/y prior
Headline annual inflation for Germany's industrial state is seen coming down and this fits with expectations of a softer set of numbers in July. If the other state readings show a similar trend, this at least helps to afford the ECB some added room in justifying a...
France Q2 preliminary GDP +0.5% vs +0.1% q/q expected
Prior +0.2%; revised to +0.1%The French economy grew more than anticipated in Q2 but the devil is in the details. Exports were the main contributor to growth on the quarter, with the breakdown showing:Domestic demand -0.1%Inventory changes -0.1%Net foreign trade...
It’s a close call on a RBA rate hike for next week
The latest poll by Reuters shows that 20 of 36 economists are expecting the RBA to announce a 25 bps rate hike to 4.35% next week. If so, that will represent the highest cash rate in nearly 12 years. For me, that's still quite a split decision as the other 16...