The US treasury will auction off $35 billion 7 year notes at the top of the hour. The six-month averages of the major components shows:Bid to cover 2.46XTail +0.9 basis pointsDirects (a measure of domestic demand) 18.8%Indirects (a measure of international demand)...
Bank of England Haskel: Further increases in bank rates cannot be ruled out
Bank of England Haskel is on the wire's saying:Further increases in the bank rate cannot be ruled out.He prefers to lean against the risks of inflation momentum.Despite current difficult circumstances, embedded inflation would be worse.While some indicators suggest...
USDCAD up strongly today and moves toward next key target area
USDCAD moves toward key swing areaThe USDCAD is breaking higher away from the 50% of the move down from the March high to the April low. The low came in at 1.35808. The low price today bottomed at 1.3585. Yesterday the price broke above the 50% retracement and also...
NZDUSD falls below key swing area. Seller adds to their control.
NZDUSD breaks lowerThe NZDUSD is continuing its move to the downside after yesterday's sharp move lower after the RBNZ "dovish hike". Yesterday the Reserve Bank of New Zealand (RBNZ)signaled the end of its rate-hiking cycle, after raising rates by 25 basis points to a...
European equity close: Moderate declines in third day of losses
The AI revolution is happening in the US, not in Europe. Nvidia is holding up the US side of the stock market but not helping Europe any as traders fret about higher interest rates.Stoxx 600 -0.2%German DAX -0.2%UK FTSE 100 -0.6%French CAC -0.3%Italy MIB -0.25%Spain...
Fed’s Collins: A pause on rate action would give Fed space to measure impact
Fed may be at or near time to pause rate hikesInflation too high but sees promising signs of moderationWatching a wide array of dataBanking sector likely to weigh on demandThis is a bit of a pushback from the doves. The battle lines are clear now though with either...
McCarthy: I take June 1 as the debt ceiling deadline
No one seems to know exactly when the real US debt ceiling deadline is and what can be done to extend it. It depends on tax receipts, the timing of outlays and whatnot.By declaring that he sees it as June 1 and also that it will take 72 hours to get a deal written up,...
Fed’s Barkin: Some businesses still sayign they need to raise prices
The labor market is 'quite tight'Demand is definitely cooling, in part because it was overstimulated during the pandemicFed rate hikes are also helping to reduce demand Data on productivity is moving in the wrong way but much is unknown about covid impacts on hiring...
AUDUSD trades to the lowest level since November and below a key swing area
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,...
Two reasons the EUR is unlikely to see sustained appreciation – Goldman Sachs
EURUSD dailyGoldman Sachs sees limited prospects for continued EUR appreciation on muted inflows and deteriorating terms of trade. Is there enough reason for continued appreciation? Goldman Sachs believes there probably isn't. Positive yields have managed to halt...
US April pending home sales 0.0% vs +1.0% expected
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,...
USD/CAD stretches higher as oil slumps and the US dollar climbs
USD/CAD is at the highs of the day, up 36 pips 1.3628 -- a session high.The gains come amidst a broad US dollar rally that follows signs of an imminent debt ceiling deal. That has led the market to price in a high likelihood of a Fed rate hike in either June or July,...
US major indices open mixed. Nasdaq higher as Nvidia soars
The major indices are opening mixed. NASDAQ higher as Nvidia soars after beating earnings and increasing revenue projections to $11B (from $7B this quarter). That was 50% greater than analysts expectations. It's all AI.Nvidia shares soar at the openThat's the good...
The USD moves higher and the USDJPY and GBPUSD are breaking key areas.
The USD is moving higher and the USDJPY and GBPUSD are breaking key areas. There is chatter about a debt deal possible today. Initial jobless claims and GDP were better. Stocks are higher thanks to Nvidia. The market is starting to price in a hike in June. All are...
Debt ceiling deal nears completion: Question is no longer if the Fed will hike, but when
Fed funds futures are bouncing around but currently show a 42% chance of a June 14 hike with the remainder unchanged. However there are now 22.3 bps of hiking priced in for the July 26 meeting, which is nearly a fully priced in hike.The dollar has cheered the...
EURUSD moves below a key floor. Old floor is now the ceiling.
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,...
McCarthy: Negotiators have made some progress on debt ceiling
Not everyone will be happy with debt dealNegotiators worked well past midnightI have instructed negotiators to work 24 hours a day for a dealSeparately, US Republican Rep McCaul said they're getting close to a deal and that it's down to the details.Yesterday, he said...
US initial jobless claims 229K versus 245K estimate
Initial jobless claims dipPrior week 242K revised to 225KFor the week ending May 20, initial claims were 229,000, an increase of 4,000 from the previous week's revised level of 225,000.The previous week's level was revised down by 17,000 from 242,000 to 225,000.The...
US Q1 2023 GDP (second reading) +1.3% vs +1.1% expected
The advance reading was +1.1% vs +2.0% expectedQ4 final was +2.6% annualizedDetails:Consumer spending +3.8% vs +3.7% advanceGDP final sales +3.4% vs +3.4% expectedPCE prices 4.2% vs 4.2% advanceCore PCE prices 5.0% vs 4.9% expected (4.9% advance)GDP deflator 4.1% vs...
BOJ’s Ueda: Changing YCC target to 5-year zone from 10-year a possible future tweak
Shortening duration of BOJ YCC targets to 5-year zone from 10-year would be among options if the BOJ were to tweak policy in the futureIt is possible to keep 5-year yield stable and low even by targeting 10-year yield as long as the shape of the curve is upwardJapan's...