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,...
2-year yield tumbles to the lowest level since early June
US 2 year yield is trading at lowest level since JuneThe US 2-year yield is now down -29 basis points at 4.439%. That is the lowest level since June and the largest one-day decline since March. Looking at the daily chart the prices approaching its 50% midpoint of the...
Powell Q&A: Noted that officials talked about path for cuts today
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,...
The technical levels in play for the major currency pairs after the FOMC decision
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,...
Powell opening statement: Path forward is uncertain. Full effects of tightening to come
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,...
Powell press conference begins. Watch live
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,...
Fed Stays Put, Sees Three Rate Cuts in 2024; Gold Prices Soar as Yields Plunge
FOMC INTEREST RATE DECISION KEY POINTSThe Federal Reserve keeps borrowing costs unchanged in their present range of 5.25% to 5.50%, in line with expectationsThe dot plot sees 75 basis points of easing in 2024, a little less than current market pricing but moving in...
The Fed decides to validate market pricing, rather than pushing back
There is no ambiguity in the market reaction to the Federal Reserve statement.The dot plot was moved towards market pricing, which is essentially validating it rather than pushing back against a market that was pricing in 114 bps in easing next year. The Fed took down...
FOMC dot plot & central tendencies from December 2023 meeting. EOY 2024 rate 4.6%, -50bps.
The FOMC dot plot from September 2023 showed the median rate at the end of 2024 at 5.1%. In the December report:For 2024, the median fed funds target rate is now 4.6% vs 5.1% in June - down -0.50%For 2025, the median fed funds target rate is now 3.6% vs 3.9% in June -...
The full statement from the December 2023 FOMC rate decision
Federal Reserve issues FOMC statementFor release at 2:00 p.m. ESTRecent indicators suggest that growth of economic activity has slowed from its strong pace in the third quarter. Job gains have moderated since earlier in the year but remain strong, and the unemployment...
FOMC decision: No change to rates. 2024 median dot 4.6% vs 4.9% expected
Federal ReserveThe headline is the median dot falling further than expected, putting a full 50 bps of easing into the curve rather than the 25 bps expected. In addition, there are five dots below that.Fed funds rate left unchanged at 5.25-5.50%, as expectedRecent...
For reference: The November 1 FOMC statement full text
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,...
What would give sellers in S&P some hope through the FOMC decision?
S&P needs to get and stay below the July high closeThe S&P index is working on its fifth day in a row higher. Having said that, the index is only up three points higher today or 0.06% at 4646.68. Nevertheless, the buyers are in full control. What would be a...
EURUSD has clearly defined the bullish and bearish levels that will dictate the trade bias
The EURUSD has defined key bookends that will define bullish and bearish bias through the FOMC decision. On the upside (lower USD /more dovish Fed), the 200-hour MA at 1.07979 followed by the 200 day MA at 1.08255 are the upside targets. Getting above both those...
European equity close: The waiting game ahead of the Fed
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,...
NZDUSD bounces off support near the 200 day MA and approached hourly MA levels
The NZDUSD moved lower in the Asian session as lower food price inflation data, and a shift in policy focus from the RBNZ from targeting employment and inflation, to just targeting inflation. The data and the policy decision helped to push the NZDUSD to new lows for...
The AUDUSD trades in an up and down range as traders await the next move.
The FOMC rate decision will take place later at 2 PM with the Fed expected to keep rates unchanged. However, there is a lot of uncertainty from the details including the statement, the Fed Chair Powell comments, the "dot plot" and the measures of inflation, GDP, and...
Yellen sees inflation coming down, but her forecast is far too conservative
This is an extremely conservative forecast from Yellen.The January and February US CPI prints were +0.5% and +0.4% m/m, respectively. Those will be lapped in a few months and CPI inflation is currently running at 3.1% y/y. A fall to a 2-handle is almost a sure thing...
EIA weekly US crode oil inventories -4259K vs -650K 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,...
It’s all about the dot plot at the FOMC meeting
The FOMC statement will be scrutinized as usual and so will the press conference from Powell but the market isn't expecting the Fed President to validate the 114 basis points of cuts priced into the Fed funds curve.After all, it was only back in September that the...