Share
The US-based equity funds witnessed more than $8.4 billion of cash withdrawals in the week ended Wednesday, according to Refinitiv’s Lipper. The withdrawals have come ahead of next week’s Federal Reserve meeting. The central bank is widely expected to cut rates by 25 basis points. The move has been priced in and the outflow of…
Share
Minneapolis Fed President Neel Kashkari recently crossed the wires announcing that he called for a 50 basis points interest rate cut at this week’s Fed meeting. “Aggressive action needed to re-anchor inflation expectations,” Kashkari argued and added: “Fed should commit to not raising rates until inflation is sustainably at 2%.” The US Dollar Index, which…
Share
Deutsche Bank analysts suggest that the Fed meeting has opened the door to rate cuts as early as July. Key Quotes “They did note that Powell said “there was not much support” for a cut at yesterday’s meeting (excluding Bullard’s dissent), which likely means that they will need to see further deterioration in the…
Share
Asian stocks rise despite uncertainty ahead of Fed rate decision. Nikkei is flashing red with Yen ticking higher. Asian equity markets are reporting modest gains this Tuesday morning with investor caution ahead of the central bank meetings capping upside. The Shanghai Composite index is currently adding 0.10% gains. Stocks in Australia and…
Share
Analysts at Deutsche Bank suggest that we have a Fed meeting to look forward to this evening and the overriding consensus, both amongst economists and also in markets, is for no hike. Key Quotes “Our economists believe that the only “drama” about the statement will be around alterations to the Committee’s description of recent economic…
Share
The FOMC Meeting Minutes from the May decision will shed some light on the Fed’s thinking. The usage of the word “symmetric” in regards to the Fed’s inflation target will come under specific scrutiny and two other points are important to watch. The US Dollar is poised to remain bid unless the Fed sends…
Share
Things are not looking that great in the US economy and the dollar begins letting it go. However, the main culprit regarding the dollar’s fall is the US President. Every day is followed by a new revelation, with the FBI firing and the disclosure of classified data hurting. Other major currencies are stable but also…
Share
So we finally arrive at what is the most anticipated Fed meeting in modern times, with what is likely to be the first interest rate increase from the US Federal Reserve in nearly 10 years. Indeed, the expectation is so strong and the Fed has done so much to prepare markets for the eventuality that…
Share
The dollar is seeing modest settling pressure overnight and more so at the start of the European session against the single currency. The sense is that the market is getting more nervous of being long dollars ahead of the FOMC meeting result tomorrow, given that the hurdle to a bullish outcome looks pretty high. EURUSD…
Share
Pessimistic investor sentiment caused US equities to struggle yesterday, with sellers dominating market action into the conclusion of the North American trading session. Equities and fixed income continued to move in tandem, with rising 10-year US treasury yields making traders skittish about the prospects for the recovery in the US should rates continue to…
Share
EUR/USD continues to move upwards on Wednesday. The pair was testing the 1.32 line in the European session, as the US dollar continues to weaken. In the US, the markets will be hoping for good news from ADP Non-Farm Employment Change and the ISM Manufacturing PMI. This will be followed by the FOMC Statement at…