While investors will continue monitoring upcoming economic data, including home sales and personal spending, what they’re really looking forward to is the Fed’s annual symposium at Jackson Hole which usually takes place in person, but because of rising COVID cases in the US and worldwide, will this year take place online. It begins at the […]
The dollar edged higher in early European trading Monday, but remained near a one-week low as rising Covid-19 cases and slumping U.S. consumer confidence could pressure the Federal Reserve to delay tapering its bond-buying program. At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, […]
The virus is once again raising the prospects of slowing the economic recovery that was unevenly unfolding. The preliminary July PMI for Australia, UK, France, and the US was disappointed. Expectations for the trajectory of monetary policy are being impacted. Consider that the implied yield of the December 2022 Eurodollar futures fell to 40 bp […]
Inflationary pressures are showing no signs of easing just yet and the market will soon look to test the Fed’s patience. The dollar has been stuck in a tight trading range since the middle of June, but that could soon change if the rest of the world shifts to a tightening mode more quickly than […]
Asian stocks dropped on Monday as investors mulled the implications of a surprise hawkish shift last week by the U.S. Federal Reserve, while the Treasury yield curve flattened further with 30-year yields dropping below 2%. Though investors have been spoiled by the most generous stimulus ever, both from the Fed and the Biden Administration, a […]
The Federal Reserve’s Open Market Committee meeting is the most important event in the week ahead. It is not that it will take fresh policy action. Rather, its observations about the economy and its forward guidance are the focus. Since the Fed last met in April, job growth has slowed, and prices have accelerated. While […]
US CPI DATA: Possible Impact on GOLD | TAPERING to guide the further direction If the US CPI print comes in hotter than the consensus of a 0.4% rise in May, it will ramp up the Fed’s tapering expectation, which will render negative for the non-yielding gold. The ECB could also hint towards dialling back […]
The taperless tantrum could continue across financial markets now that it seems clear Fed Chair Jerome Powell won’t react until he sees disorderly market conditions or if financial conditions tighten further. Positive economic, such as this past employment report, might continue to fuel optimism about the economic outlook and that could raise expectations that the […]
