A big part of our journey to raise rates has been doneBut there is still some way to goHe's offering a timely reminder for markets not to get too carried away even with lower headline annual inflation readings this week, and perhaps a slightly lower core annual...
Spain May manufacturing PMI 48.4 vs 47.8 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/JPY nudges a little higher as Treasury yields catch a light bounce on the week
It could be month-end flows or haven bids, or maybe it was a bit of both that saw inflows into bonds this week. But as we get things going in June, Treasury yields are now seeing a decent bounce on the new day/month. 10-year yields are up 4.6 bps to 3.683% and that is...
European equities open higher to start the day
Eurostoxx +0.6%Germany DAX +0.5%France CAC 40 +0.6%UK FTSE +0.3%Spain IBEX +1.0%This is a much welcome respite in what has been a rather rough week for European stocks. Despite the gains, both the CAC 40 and IBEX have cracked below their respective 100-day moving...
Eurostoxx futures +0.7% in early European trading
German DAX futures +0.5%UK FTSE futures +0.3%This come amid a bit of a rebound in US stocks late yesterday after the European close. The overall market mood today is rather tentative though, with US futures keeping little changed. Eurozone CPI data will be one to...
UK May Nationwide house prices -0.1% vs +0.1% m/m expected
Prior +0.5%; revised to +0.4%House prices -3.4% vs -3.7% y/y expectedPrior -2.7%UK house prices softened once again in May as housing conditions continue to normalise and slow down amid higher interest rates. Nationwide says that a relatively soft landing remains the...
Germany April retail sales +0.8% vs +1.0% m/m expected
Prior -2.4%Retail sales -4.3% vs -5.0% y/y expectedPrior -8.6%Despite an increase compared to March, don't let this distract you from the fact that German consumption activity continues to sit at rather depressed levels since the Covid pandemic. Looking at the...
Switzerland April trade balance CHF 2.60 billion vs CHF 4.53 billion 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,...
ECB’s Rehn: Core inflation must slow before mulling easing
Monetary policy journey is not over yetInflation outlook continues to be too high for too longA lasting rise in inflation expectations is an upside risk to inflationThe lags and the strength of transmission (of rate hikes) to the real economy remain uncertainThe...
Trade ideas thread – European session 1 June 2023
The Fed is certainly keeping things interesting, with policymakers now suddenly suggesting that they may "skip" a rate hike in June. The coordinated message yesterday doesn't seem to be coincidental and we'll have to see if there will be more later today and tomorrow,...
FX option expiries for 1 June 10am New York cut
There are two to take note of, as highlighted in bold.And they are both for EUR/USD at 1.0700 and around the region of 1.0725-35. In between that, there is the 100-hour moving average for the pair at 1.0711 currently, so put together all of this should act as a...
Eurozone CPI the key release to watch in the session ahead
The dollar had looked poised for a strong break higher yesterday, only to get pulled back after Fed's Harker and Jefferson talked up the decision to "skip" a rate hike in June. That led to a significant repricing in rate hike odds for next month, with markets now...
A cause for pause
If you just go by the headlines, it would certainly seem like it:It may have been a coincidence but in central bank language, that is hardly ever the case. It appears to be that Fed policymakers are starting to pick a side but a lot will still come down to the big...
Goldman Sachs forecasts Bank of Canada to hold rates steady in June, hike later this year
This is via the folks at eFX. For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.Goldman Sachs forecasts more rate hikes from the Bank of Canada (BoC) this year due...
European Central Bank President Lagarde is speaking about more than money today, 1 June
President of the European Central Bank Christine Lagarde is speaking on Thursday, 1 June 2023The venue is the 27th German Savings Banks Conference 2023The speech topic is "Because it's about more than money"Weird topic. Time is 0930 GMT/0530 US Eastern time ---The ECB...
IMF says its too soon for the BOJ to tighten monetary policy
International Monetary Fund's chief economist Pierre-Olivier Gourinchas spoke with Reuters.In brief: Too early for BOJ to tighten monetary policy as re-anchoring inflation expectations to its 2% target will take timeBOJ must stand ready to tighten monetary policy if...
The ECB warning on bond market impacts of BOJ policy change is getting a rerun in Asia
On Wednesday the European Central Bank released its quarterly Financial Stability Review.In it the Bank warned that policy normalisation by the Bank of Japan could test the resilience of global bond markets."Inflation in Japan has been increasing over the past year,...
ForexLive Asia-Pacific FX news wrap: China’s 2nd Manufacturing PMI beats, into expansion
The key data focus for the session here in Asia-Pacific today was the Caixin / S&P Global Manufacturing PMI for May 2023. This was expected to remain in contraction, especially following yesterday’s very disappointing official PMIs, those for China’s National...
Fed’s Harker gave dovish comments on Wednesday, he is speaking again on Thursday, 1 June
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,...
AUD/USD higher after the Chinese Manufacturing PMI beat
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,...