Philadelphia Fed President Tomas Barkinsaid on Wednesday that he would be open to a 50 bps rate hike in May if needed and will look at inflation and the strength of the economy, according to an interview on Bloomberg TV. The war in Ukraine has added to inflationary pressures, he noted, but has not affected […]
Tag: Fed
AUD/USD gives back early gains and holds steady above 0.7500
AUD/USD gains positive traction on Wednesday, although it lacks continuation buying. Peace hopes in Ukraine cap commodity prices and weigh on AUD. Risk appetite and a pullback in US bond yields weigh on the USD. The pair AUD/USD has given back its early gains and retraced to the lower end of its daily range during […]
Rate hikes of 50 basis points in May, June and July – Danske Bank
Economists at Danske Bank definitely think it’s the right way to go for the Federal Reserve’s interest rate hike. They change their previous position on the path of the Fed and for now predict rate hikes of 50 basis points in May, June and July and 25 basis points at each of the following meetings […]
USD/JPY continues to slide, finds solid support at 122.00
USD/JPY’s pullback from Monday’s highs of 125.00 continued on Tuesday after statements by Japanese politicians sparked profit-taking. But the pair bounced off 122.00 and many strategists are not expecting a lasting pullback given the Fed’s recent hawkish line change. The strong setback of USD/JPY from multi-year highs, testing the 122.00 level during US trade. Since […]
The Fed “collectively underestimated” the impact of fiscal spending on inflation — Patrick Harker
Philadelphia Fed President and FOMC member Patrick Harker said on Tuesday that Fed policymakers “collectively underestimated” the impact fiscal spending in 2020 would have on inflation, Reuters reported. Harker said there is “definitely a correlation” between the yield curve and subsequent recessions, but a number of market signals, including inflation expectations and market sentiment, need […]
USD/JPY pulls away from multi-year highs amid broad-based USD weakness
USD/JPY witnessed strong selling on Tuesday amid widespread USD weakness. Ukraine diplomacy hopes boosted the euro and weighed on the dollar. A combination of factors should support the pair and limit deeper losses. The strong offered tone surrounding the dollar dragged the pair USD/JPY to a fresh daily low around 122.50 during the early European […]
GBP/USD recovers and rises towards 1.3150 amid USD weakness
GBP/USD staged a solid rebound from two-week lows hit earlier this Tuesday. Risk-off momentum weighed heavily on the safe haven USD and extended support for the pair. Aggressive Fed Expectations, Rising US Bond Yields Could Limit USD Loss and Cap GBP/USD. USD intraday selling accelerated during the mid-European session and pushed the pair higher GBP/USD […]
Three Scenarios for the Economy and Markets – Citibank
Citi analysts have devised three scenarios to predict possible outcomes, as the world faces an extremely complex set of challenges. Currently, the Citi’s base case is resilient with a 40% chance, with the robust and recessionary scenario at 25% chance each. Robust, resilitene and recession “The resilient scenario expects Fed policy tightening to limit growth […]
USD/CAD falls below 1.2500 amid a rally in oil prices and a weaker USD
A combination of factors is dragging USD/CAD back below the 1.2500 level on Tuesday. A rebound in oil prices benefits the CAD and puts pressure on the pair amid modest dollar weakness. Aggressive expectations from the Fed and rising US bond yields should support the USD and limit losses for the pair. The pair USD/CAD […]
USD/JPY pulls back from multi-year highs amid falling US bond yields.
USD/JPY rose to a new multi-year high in reaction to the BoJ intervention on Monday. Extremely overbought conditions fueled profit-taking amid falling US bond yields. The policy divergence between the Fed and the BoJ acted as a tailwind for the pair and favors bullish traders. The pair USD/JPY trimmed a portion of its strong intraday […]
