UK inflation remains too highA lot of policy tightening has yet to come throughEarlier in the day, BOE policymaker Dhingra said that roughly only 20% or 25% of the impact of rate hikes have been absorbed by the economy. In other words, they're trying to buy time for...
ECB’s Villeroy: Current level of interest rates is approriate
Patience is more important than activism at presentDuration is more important than level of interest ratesThey are determined to get the message across, trying to vindicate their decision to pause without conceding that it does have to do, at least in some part, with...
The Middle East is Not the Biggest Threat to Markets
A new crisis in the Middle East does not seem to have frightened anyone, neither investors nor Central Banks. The former continue to buy stocks, while the latter reiterate their dovish stance.It seems that everyone has decided that the conflict will not last long,...
Market Update – October 12 – The key US Inflation
Stock markets moved higher across Asia, with the Hang Seng outperforming again as tech stocks strengthen. China stimulus hopes are also helping, and the CSI300 lifted 0.9%. The JPN225 bounced 1.8% after a stronger close on Wall Street yesterday. Last night, FOMC...
ECB’s Wunsch: Maybe we’ve reached the peak in interest rates
If inflation meets forecast, then no more rate hikes are neededBacks reopening discussion on PEPP timetableWe have to live with current uncertaintyOil prices are an upside risk to inflationThis just conforms to market expectations that they are already done with rate...
S&P 500 Technical Analysis – The bulls are eyeing the top trendline
The market continues to march higher as the war in Israel hasn't spread to other Arab countries. In fact, yesterday the US intelligence has even reported that Iran was surprised by the Hamas attack. This has weighed on Crude Oil prices and eliminated the risk of a...
FBS Awarded for Best Islamic Forex Account
FBS, a leading global broker, received the Best Islamic Forex Account award from the Forex Expo Dubai. Excellence in this nomination recognizes FBS’s commitment to improving people's access to financial markets and inclusion in trading."The number of users who use...
IEA cuts 2024 global oil demand growth forecast on softer economic outlook
2024 global oil demand growth forecast cut to 880k bpd (previously 1 mil bpd)Cites harsher economic conditions and energy efficiency improvementsRecent oil price pullback reflects demand destruction2023 global oil demand growth forecast bumped up to 2.3 mil bpd...
A more tentative mood so far to start the session
Major currencies are more or less flattish, after a bit of an extension to the narrower ranges today earlier. The dollar is overall steadier as Treasury yields are also looking rather tentative, with 10-year yields seen at 4.56% for the time being. Taking EUR/USD as...
EURUSD Technical Analysis – This resistance will decide where the pair goes next
US:The Fed left interest rates unchanged as expected at the last meeting.The macroeconomic projections were revised higher as the economy showed much stronger resilience than expected and the Dot Plot showed that the majority of members still expects another rate hike...
FX option expiries for 12 October 10am New York cut
There are a couple to take note of for EUR/USD, as highlighted in bold.But they are a little distance away at 1.0550 and 1.0575 with another decently large one at 1.0600. The figure level doesn't really offer too much technical significance and in fact, so do the...
ECB’s Stournaras says should not stop bond buying too early
No value in bringing forward end of PEPPNow especially that there is new uncertainty from events in Israel and PalestineNeed to keep flexibility and act if necessaryThis contradicts with what Kazaks mentioned yesterday, that the ECB should at least discuss an early...
BOJ’s Noguchi: We have no choice but to raise inflation forecast for fiscal year 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,...
Russell 2000 Technical Analysis – The key resistance is now is sight
The market continues to march higher as the war in Israel hasn't spread to other Arab countries. In fact, yesterday the US intelligence has even reported that Iran was surprised by the Hamas attack. This has weighed on Crude Oil prices and eliminated the risk of a...
UK August monthly GDP +0.2% vs +0.2% m/m expected
Prior -0.5%; revised to -0.6%GDP +0.5% vs +0.5% y/y expectedPrior 0.0%; revised to +0.3%A rebound in services sector activity (+0.30%) was the main contributor to the monthly growth in August, while there were declining contributions in both production (-0.09%) and...
Little on the agenda in European trading today
Major currencies are little changed so far after the dollar having traded more mixed yesterday. There were some push and pull flows after the stronger US PPI data and softer Treasury auction, with equities managing to salvage gains in the end as well. But all eyes are...
China bars brokerages from taking on new mainland clients for offshore trading – report
This will be the first of such notice as China is trying to manage outflows of capital it would seem. The report says that Beijing has prohibited domestic brokerages and their overseas branches from accepting new mainland clients for the purpose of offshore trading....
US CPI the main event in trading today
There's no bigger report in markets over the last few months but perhaps the importance of this event has waned a little, especially since major central banks have now opted to pause. And if inflation continues to follow a downtrend, it's a case of everything sticking...
ForexLive Asia-Pacific FX news wrap: Little net change for major FX rates – awaiting CPI
It was a subdued range day across major FX rates with the market here in Asia-Pacific content to wait on the consumer-level inflation data due from the US at 8.30am Eastern time. On Wednesday we got a blowout PPI result delivered in that, wholesale-level inflation...
US CPI data due later Thursday – here is the range of estimates
The PPI released Wednesday was shockingly high:The response in the stockmarket was a shrug:Later today we get the consumer level inflation data:Consensus in the screenshot:The ranges of estimates to take note of are:Headline CPI m/m minimum 0.2% to maximum 0.6%CPI ex...