The better-than-expected data has given NZD/USD a bit of a blip higher.Stats NZ:“Business services was the biggest driver of economic growth this quarter, largely due to computer system design,” Several other industries also contributed to the growth this quarter,...
Japan’s PM Kishida says economic package will include measures to counter inflation
Japanese PM Kishida is currently in New York, speaking from there. He says he'll be having folks put together the 'pillars' of an economic package from early next week: Says nothing decided on potential summit with China Says Japan's economy is currently still not...
Former RBA Governor says changes to be made at the Bank are a disaster, “very bad policy”
Well-respected former Reserve Bank of Australia Governor Ian Macfarlane is very concerned about the changes being made at the Bank in response to the 'review'. The proposed move to establish a separate body within the Reserve Bank to make interest rates decisions in...
TD sees a US government shutdown as inevitable: when, not if
TD says that the question of a US government shutdown appears to be ‘when’ rather than ‘if’ at this stage.If legislation on the House floor does not make ample headway by the end of the week, the most likely scenario will be a temporary shutdown. Even if Congress...
Vanguard says the Federal Open Market Committee (FOMC) may need to hike rates 3 more times
Vanguard manages circa USD8.1 tln in mutual funds.Prior to this week's FOMC meeting its chief global economist and head of the Vanguard Investment Strategy Group said the Fed may need to continue hiking interest rates, one to three more times.cited a substantially...
At least 2 US analysts have raised their S&P 500 forecast to 4600. Don’t worry, be happy.
Wells Fargo lifted its S&P 500 target to 4,60, citing:FOMCseasonalitybut did warn that defensives are signalling a 'yellow flag'Bank of America headline their note with 'Don't worry, be happy":raise their S&P 500 2023 year-end target to 4600 from 4300...
Goldman Sachs has raised its Brent oil forecast to US$100
Goldman Sachs has hiked its 12 month forecast for Brent crude from its previous $93 to $100.says that "most of the rally behind us""We believe that OPEC will be able to sustain Brent in an $80-to-$105 range in 2024 by leveraging robust Asia-centric global demand...
Forexlive Americas FX news wrap 20 Sep: Fed keeps steady but shifts to higher for longer
The Federal Reserve announced that rates remain unchanged with a target range of 5.25% to 5.5%. HOwever, the dot plot of rates showed that the vast majority of the voting members still see one more Fed hike between now and the end of the year. Moreover, they took a...
Russia considering additional tax on export of metals, fertilisers, some other commodities
Reuters with the info that Russia is considering imposing an additional tax tied to the rouble-dollar rate on exports of metals, fertilisers and some other commodities.Reuters citing two unnamed sources. tax may be imposed from Octoberwould last until the end of...
Hedge fund CEO Jeffrey Gundlach says this is one of the best Fed decisions in a while
Gundlach is the founder of DoubleLine Capital, some remarks crossed the news wires in response to the Federal Open Market Committee (FOMC) decisions today. This is one of the best Federal Reserve decisions in a whileIts the right thing to not raise ratesWe have a lot...
USD/JPY cracks to a fresh 2023 high above 148.25 on higher for longer Federal Reserve
Japanese authorities are quick to tell us that they want the yen FX rate to reflect fundamentals. Well, it doesn't get much more fundamental than stark display of monetary policy divergence like a 500-odd bp differential between holding the USD vs. the JPY. And with...
US stocks not happy with “higher for longer” from the Fed
The major stock indices are ending the day lower and voting thumbs down to "higher for longer" (for the time being at least). The FOMC in their dot plot are forecasting one more hike in 2023 and raised the end-of-year 2024 rate to 5.1% from 4.6%. In my mind, 4.6% was...
Economic calendar in Asia for Thursday, 21 September 2023
New Zealand data kicks off the session. Q2 economic growth is expected to be positive as NZ crawls out of its recession. This snapshot from the ForexLive economic data calendar, access it here. The times in the left-most column are GMT. The numbers in the right-most...
Trade ideas thread – Thursday, 21 September 2023 – Higher for longer edition
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,...
EURUSD cracks below 100 hour MA at 1.06748
EURUSD moves below the 100 hour MAThe EURUSD has moved to a new low for the day, and in the process, the price has moved below the 100-hour moving average 1.06748. Breaking below the 100-hour moving average will now set that level as a resistance level. The bias is...
A summary of the Fed Chair Q&A comments by topic
> Central Banks > A summary of the Fed Chair Q&A comments by topic Central Banks A parsing of the Fed Chair comments from Powell <!--> --> <!--> --> Employment/Labor Market:Labor market remains tight.Labor supply and demand are moving...
Highlights from the Fed Chair Powells press conference after September rate decision
Pre-QA comments from chair Powell:Fed is squarely focused on dual mandateFed has covered a lot of ground, full of facts have yet to be feltWe can proceed carefullyOur decisions will be based on assessments of data and risksGrowths in real GDP has come in above...
Watch Fed Powell’s Press conference LIVE
The Federal Reserve press conference following the September rate decision can be watched by clicking above. The Federal Reserve kept the target range for rates between 5.25% and 5.5%. They also kept the end-of-year rate at 5.6% unchanged from the June projection. For...
The dollar is higher, yields are higher and stocks are a bit lower after the FOMC decision
The initial reactions in the market were for the US dollar to move higher, yields to move higher, and stocks to move lower.EURUSD: The EURUSD moved from around 1.0725 through the 200 hour moving average 1.0702 and down to the 100 hour moving average 1.06749. The low...
Full statement from the September FOMC rate decision
Below is the full statement from the FOMC rate decision:For release at 2:00 p.m. EDTRecent indicators suggest that economic activity has been expanding at a solid pace. Job gains have slowed in recent months but remain strong, and the unemployment rate has remained...