The Reserve Bank of New Zealand raised its cash rate again yesterday but signalled the end of the cycle:Governor Orr speaking now, selling the messages:rates are restrictive, well above neutralboth economic growth and inflation are weaker than expectedwe can alter our...
McCarthy on debt limit talks – things are going a little bit better
LOL. "Going a little bit better'. What does that even mean? We are captive to this sort of drivel coming from both sides of the circus.US House Speaker McCarthy speaking on Fox Business News in an interview. More:I will not put a bill on the floor that spends more...
Economic calendar in Asia is nearly empty
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,...
Trade ideas thread – Thursday, 25 May 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,...
US equity close: Late rebound loses momentum
US stocks were sluggish for most of the day before embarking on a comeback in the final hour of trading led by Nvidia. That comeback ultimately fell flat with some heavier selling in the last half-hour. S&P 500 -0.8%Nasdaq Comp -0.6%DJIA -0.8%Russell 2000...
Nvidia set to report earnings after the bell
I suspect the rip in NVDA shares in the past 30 minutes is due to options trading and not an earnings leak, but I wouldn't rule anything out ahead of the release. Shares of Nvidia have doubled this year in the AI boom, as it chips are best-positioned to be the primary...
Stocks bounce, Treasuries remain stock
There's no news behind the recent bids in stocks and selloff in bonds. The moves haven't left much of an impression on FX but the Nasdaq (shown above) has pared its daily decline to just 0.4%, which is the best since the opening minutes of trade.In the rates market,...
Oil gains after largest US inventory drawdown since 2020
Oil fundamentals and global macro are pulling in opposite directions, leaving the market undecided.Crude has benefited from Saudi warnings along with a huge US inventory draw this week but it's struggling to make real headway because much of the market doesn't want to...
USDJPY moves closer to the 50% midpoint of range since 2022 high
USDJPY moves closer to the 50% midpointThe USDJPY has continued its move to the upside and in the process is moving closer to the 50% midpoint of the move down from the 2022 hide to the 2023 low. That level comes in at 139.574. The high price has reached 139.381 so...
Fed minutes: Officials generally agreed that extent of further hikes less certain
Participants 'generally agreed' that the extent to which further hikes may be appropriate was less certainMany participants focused on need to maintain optionality'Several' said that if economy evolved along the lines of their outlooks, further hikes might not be...
Will EUR/USD reverse higher? Where to target? Goldman Sachs
Goldman Sachs suggests that, unless there is more evidence of divergence in favor of the eurozone, it is unlikely that the EUR/USD will break the recent range towards the topside. The bank has maintained a year-end target of 1.10 throughout the year, a level that has...
US sells 5-year notes at 3.749% vs 3.763% WI
Prior was 3.500%Yesterday's 2-year sale stopped through by 1.4 bps and so did this one. Real money is still buying bonds, especially at the front end and we've seen some follow through after this auction in the cash market.While this is well-above the prior auction,...
US set to sell 5 year notes
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/JPY stretches gain to 75 pips after Waller
The latest leg higher in USD/JPY came after Waller laid out a scenario where his two choices for the June 14 FOMC meeting are to either hike or to tee up a high in July.Now, he's a hawk so he might not represent what the Fed will do and he leaned heavily on the data...
EURUSD moves back toward low of swing area
EURUSD trades the swing area today on the daily chartOn the daily chart, EURUSD has been oscillating within a significant range that dates back to March 2022, marked by 1.07509 and 1.0805. The pair's highest and lowest prices today were 1.08007 and 1.07474,...
Fed’s Waller: Decision to hike or not in June will depend on data
Fed needs to maintain flexibility for June meetingPrudent risk management may suggest skipping a hike in June and leaning toward JulyDoes not expect data in next couple of months to make it clear terminal interest rate has been reachedSays he does not support stop...
Fed’s Waller coming up next
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: I think we can make progress today
There are still differences over spendingCan we get to yes? YesThey have to spend less than last yearOn a number of places we are still far apartSays it will take 72 hours to pass a bill once a deal is reachedWe're not going to default, we're going to solve this...
European equity close: Inflation worries lead to a deep slump
It was a tough day in European stock markets:Stoxx 600 -1.9%UK FTSE 100 -1.9%German DAX -2.0%French CAC -1.7%Italy MIB -2.4%Spain IBEX -1.1%It was a tough one everywhere as inflation worries amped up after a high reading from the UK. China is also back in focus as...
What’s gold up to? Moving lower as the dollar moves higher
Gold is dipping below its 100 hour moving averageGold is currently experiencing a downward trend, influenced by a strengthening dollar and climbing yields. Notably, the two-year yield has increased by 2.3 basis points to 4.305%, while the 10-year yield rose by 0.5...