The latest Reuters poll of analysts finds that all 106 expect the Fed to hike by 25bps at next week's meeting, taking the Fed Funds benchmark overnight interest rate to the 5.25%-5.50% range 19 out of 106 expect the Fed to raise rates again after a July hikeAs for the...
PBOC is expected to set the USD/CNY reference rate at 7.1798 – Reuters estimate
People's Bank of China USD/CNY reference rate is due around 0115 GMT.The People's Bank of China (PBOC), China's central bank, is responsible for setting the daily midpoint of the yuan (also known as renminbi or RMB). The PBOC follows a managed floating exchange rate...
TD on the first Federal Reserve rate cut – penciled in Q2 of 2024
I posted earlier on the Bank of America fund manager survey:TD has a similar timing for their first expected Federal Open Market Committee (FOMC) rate cut:Finding the right level of interest rates is only the first order of tasks. The next becomes how long to hold at...
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ICYMI – Credit Suisse raised its S&P 500 year-end forecast to 4,70, from 4050
A boosted forecast for US equities from CS, info comes via Reuters:Credit Suisse citing a decline in the near-term U.S. recession risk"Our base case is that a recession will be averted, inflation will remain sticky near current levels, and monetary policy will tighten...
Citi’s global head of commodity research sees oil in a $70 – $90 range (floor – ceiling)
Bloomberg (gated) reporting on an interview it had with Ed Morse, global head of commodity research at Citigroup:Oil is unlikely to fall below $70 a barrel, but it would take a “wild card” event to push prices above $90OPEC+ doesn’t want oil prices to fall below $70...
Japan data – Reuters Tankan shows Large Manufacturing and Non-manufacturing sentiment slip
Large Manufacturing sentiment index is +3 in July vs. +8 in Junefirst drop in 6 monthsmany firms cited chip shortages and the elevated costs of raw materials as negative factorsmanufacturers' sentiment seen at +7 in 3 months timeand Non-manufacturing sentiment index...
NZD marked higher after NZ CPI data higher than expected
The data is here:The y/y came in at 6% vs. 5.9% expected. For more, see that link above.Both the q/q and y/y are down from Q1. The Kiwi$ has been marked higher, I'm not sure that is sustainable. These numbers seem unlikely to sway the Reserve Bank of New Zealand from...
New Zealand Q2 CPI 1.1% q/q (vs. expected 1.0%)
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,...
ECB officials are worried about communicating whats next after the July rate hike
Bloomberg has the piece, citing unnamed European Central Bank officials, saying that members of the Governing Council consider communication about what will happen after the July 27 rate hike their biggest challenge:With policymakers from across the spectrum insisting...
ICYMI – Morgan Stanley CEO Gorman said Fed rate cuts won’t happen in 2023
Morgan Stanley CEO Gorman spoke on Tuesday, in brief: it's hard to argue for more rate increasesrate cuts wont happen this yearsays a recession is less likelyRate cut this year? Agree, nope, not gonna happen. -Anyway, more immediately, the Federal Open Market...
Federal Reserve rate cut seen in Q2 of 2024
The most recent Bank of America global fund manager survey shows expectations are skewing towards Q2 of 2024 for the first Federal Open Market Committee (FOMC) rate cut:Some of the other survey results:60% expect weaker global growth68% say the economy will see a soft...
New Zealand inflation data is expected to support the RBNZ on-hold monetary policy
The data is due at 10.45am New Zealand time:2245 GMT6.45pm US Eastern timeBNZ snippet preview of the data:For the Q2 CPI release, the consensus sees inflation again coming in under RBNZ estimates, at 0.9% q/q and 5.9% y/y. The data should reinforce the view that both...
BoA believes 2024 could be a transformative year for the Japanese yen (JPY) – pressured
Bank of America believes that 2024 could be a transformative year for the Japanese yen (JPY) with the implementation of the expanded NISA (Nippon Individual Savings Account), a tax-exempt investment account for individuals. The bank expects this move to widen the...
Private oil survey data shows smaller headline crude draw than was expected
The inventory data from the private survey is out now, official data follows Wed. morning (US time).Via the folks at Zero Hedge:--Expectations I had seen centred on:Headline crude -2.3 mn barrelsDistillates -0.1 mn bblsGasoline -2.1 mn--This data point is from a...
Forexlive Americas FX news wrap: US dollar climbs after retail sales
Markets:Gold up $23 to $1977WTI crude oil up $1.59 to $75.74US 10-year yields flat at 3.79%S&P 500 up 0.7%CHF leads, NZD lagsRetail sales was the marquee event of the day but the data was something as a curve ball. The dollar initially dipped on the headline...
Major indices close higher. Dow up for the 7th consecutive day.
The major stock indices closed higher on the day. The Dow led the way with a gain of 1.06%. That was good for the 7th consecutive up day for that index. The Nasdaq and the S&P each closed higher for the 6th in 7 trading days. The final numbers are showing:Dow...
Economic calendar in Asia 19 July 2023 – New Zealand Q2 inflation data
The Reserve Bank of New Zealand has very strongly signalled its on hold for now, so unless the CPI is extremely ugly (well above expected) the data today should not have too lasting an impact on the NZD. This snapshot from the ForexLive economic data calendar, access...
Trade ideas thread – Wednesday, 19 July 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,...
McDonald’s winning the fast food wars is one of the great accomplishments in capitalism
MCD dailyI was on vacation last week in Montreal and was amazed at just how much busier McDonald's was than Burger King. I was on an extremely busy street at dinner time and McDonald's was absolutely packed and Burger King completely empty. You can see it in the...