Goldman Sachs Chief Executive Officer David Solomon spoke in a CNBC interview on Monday. “Inflation is a little bit stickier, and I do think, in the distribution of outcomes, there’s a reasonable chance that rates go higher,” “If they do that, it’s probably going to...
US bank deposits to come under pressure again
Morgan Stanley says that with the signing of the debt deal the US Treasury will issue a huge rollout of T-bills, which could see bank deposits come under pressure all over again:MS sees circa US$1.36 trillion of net T-bill issuance over the rest of 2023$1 trillion of...
US CPI preview: “A hotter advance in categories outside of energy and food”
Via CIBC, this is in brief from their US CPI preview.CIBC are in line with the consensus expectation on core prices, citing:core CPI prices could have risen by 0.4%, extending April’s momentum, in line with continued strength in the labor market that will have worked...
Morgan Stanley on the end of the S&P500 bear market: “We respectfully disagree “
Remarks on Monday from a Morgan Stanley note to clients:“With the S&P 500 rally now crossing the 20% threshold, more are declaring the bear market officially overWe respectfully disagree due to our 2023 earnings forecast. Ironically, a Fed pause may awaken the...
ICYMI: PIMCO CIO says is underweight the US dollar vs. other G10 and EM
Andrew Balls, chief investment officer for fixed income at PIMCO comments Monday on the US dollar:"There's no guarantee that we're going to be short the dollar all the time, but today, (in) positioning we have dollar underweights versus G10 and EM"My guess is on...
No Fed Blackout for Clarida (again!), seeing early evidence of quantitative easing fatigue
Ex- Federal Reserve Vice Chair Richard Clarida spoke on Monday Says risks to growth are skewed to the downside, reasoning:its more difficult for central banks to get inflation back to target than it was in the past 15 years due to supply shocks "We think we're going...
Forexlive Americas FX news wrap: Stocks rip, oil slips and cable dips
Markets:Gold down $3 to $1958US 10-year yields down 1 bps to 3.73%Bitcoin down 2.3% to $25,833WTI crude oil down 3.10 to $67.07S&P 500 up 0.8% and Nasdaq up 1.5%AUD leads, CHF lagsIn theory today was a prep day because the next three US trading days feature: CPI,...
NASDAQ surges. S&P and Dow also off to a good start for the week
Coming off a 7 straight weeks of gains, the NASDAQ index was certainly due for a correction, right?Not today. The NASDAQ index sword by 1.53% with a gain of over 202.77 points to 13461.91. The S&P had a solid 0.94% gain to 4339.07. The Dow industrial average rose...
Economic calendar in Asia – Tuesday, 13 June 2023 – Australian business confidence
While unlikely to move AUD too much the National Australia Bank business survey (business confidence and conditions are the twin 'headlines' from this report) is the focus on the data agenda for the session ahead. The RBA popped in a rate hike in May, which is likely...
Trade ideas thread – Tuesday, 13 June 2023
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,...
Why the market is so confident the Fed will skip hiking rates in June despite the CPI risk
Trading US CPI on Tuesday will be particularly tough because it comes the day before the FOMC decision. With the market pricing in just a 25% chance of a hike, it would take an enormous beat on expectations to flip the script.A big reason why the market is so...
Ethereum falls to the lowest since March as the regulatory onslaught continues
Those who have been around the forex market for awhile have seen this before: When the SEC wants someone out of business, they win. The US retail FX market was cleaned out by regulators who can always find some kind of deficiency. In crypto, the early wild-west nature...
WTI crude oil futures settle at $67.12
WTI crude oil futures are settling at $67.12. That is down $3.05 or -4.35%.The price low today reached $66.80. The high was at $70.33. Looking at the 4-hour chart below, the low price today extended below the low from May 31 at $67.03. That was the lowest level since...
GBPJPY tests and bounces off the 100 hour MA at 174.39
GBPJPY moved above a key swing area but rotated back downThe GBPJPY moved to the highest level going back to December 2015 in trading today. Looking at the weekly chart, in extending higher, the price moved above a swing area between 174.83 and 175.475. The high price...
Macron: Ukranian counter-offensive started and was meticulously planned
France has intensified delivery of ammunition and weapons; that will continue in the coming weeksThe 'weeks' line might be a hint at how long it will last. In terms of markets, USD/RUB is near a one-year high at the moment. The offensive hasn't gone great so far and...
US May Federal budget deficit $240 billion vs $236 billion expected
Year ago May deficit was $66 billionApril surplus was $176 billionYear to data deficit at $1.165 trillion vs $246 billion a year earlierOutlays $548 BReceipts $307 BI always find the gap between outlays and receipts to be the most ominous. You need to raise receipts...
Nasdaq extends gains to 1% as chipmakers lead the way
Anything related to AI or anything that could be related to AI is surging.Today it's chipmakers lead the way with Broadcom and Intel as the two top performers. Nvidia has flattened out after gapping higher on earnings at the end of may but still trades at 35x sales....
Dollar bid stalls despite a tail at the 10-year sale
USD/JPY looked like it only needed a nudge to break out of the two-day range capped near 139.70 but when higher-than-expected yields materialized at a 10-year Treasury auction, it still couldn't get through. The 2 bps tail at the 10-year sale would usually lead to US...
U.S. Treasury auctions off $32 billion in 10 year notes at a high yield of 3.791%
High-yield 3.791%Tail 1.5 basis points versus segment average of 0.9 basis pointsWI level at the time of the auction 3.776%Bid to cover 2.36Xversus assessment average of 2.44XDirects 19.9% versus a 6 month average of 18.5%Indirects 62.3% versus 6-month average of...
The US treasury to auction off $32 billion of 10 year notes at the top of the hour
The U.S. Treasury will auction off $32 billion of 10-year note at the top of the hour. The treasury has already auctioned off $40 billion of the 3 notes earlier today with domestic demand solid, but international demand was less than average. Below were the results...