Richmond Fed President and FOMC member Thomas Barkin said on Friday that the interest rate path set by the Fed this week is a balancing act between fighting inflation and managing uncertainty around the post-pandemic economic recovery, Reuters reported. The Fed could move faster with half-point rate hikes if inflation expectations become unanchored, Barkin continued, […]
Tag: Fed
EUR/USD fails to rise above 1.1050
After a strong week, the Euro is seeing some profit taking and EUR/USD has pulled back to 1.1050. EUR/USD’s failure to push higher beyond the 1.1100 level was also likely due to the Fed’s hawkish comments. Although not the worst performing currency in the G10 on the day, the euro currently sits near the bottom […]
USD/CAD bounces from two-week low, pulls back approaching 1.2650
USD/CAD reversed an intraday decline to levels below 1.2600, or above a two-week low. The resurgence in USD demand turned out to be a key factor that extended some support. Steady oil prices, upbeat Canadian data supported the loonie and capped gains. The pair USD/CAD built on its steady intraday recovery move from a more […]
XAU/USD trades under pressure as investors seek safety
The gold price is under pressure, despite a sour market mood amid ongoing tensions in Eastern Europe. The US Federal Reserve’s decision had a limited lasting impact on financial markets. XAU/USD is trading at the lower end of the daily range, short-term neutral. The XAU gold has seen little progress since bottoming out on the […]
GBP/USD flirts with daily low, targeting 1.3100 level amid broad-based USD strength
GBP/USD saw some intraday selling on Friday amid a strong uptick in USD demand. A softer risk tone, the Fed’s dovish outlook turned out to be key factors supporting the dollar. The lack of follow-through on selling warrants caution before making aggressive bearish bets. The pair GBP/USD remained on the defensive heading into the American […]
Data says we should move in 0.50% increments, but geopolitical risks warrant caution
Fed Board of Governors member Christopher Waller said in an interview on CNBC on Friday that as data calls for the Fed to move in 50 basis point increments, geopolitical events warrant caution. The data suggest that we move in the direction of a 0.50% rise in the next meetingsWaller continued, adding that Europe will […]
USD/JPY rises towards the 119.00 level after the BoJ
USD/JPY regains positive traction on Friday after the BoJ announced its monetary policy decision. The BoJ sticks to its ultra-accommodative policy stance and downgrades its economic assessment. The Fed’s more optimistic outlook benefits the USD and supports prospects for further gains in the pair. The pair USD/JPY has come back close to the multi-year high […]
EUR/USD declines back below 1.1100
EUR/USD has been falling from the previous session’s highs in recent trade and is now back below the 1.1100 level. Since the Fed’s hawkish policy announcement on Wednesday, EUR/USD has gained around 1.0%, unnerving some analysts. Markets appear to be currently being buoyed by “hopes” for a Russia-Ukraine peace deal, meaning geopolitics remains a key […]
S&P 500 rises to 4,365 despite mixed headlines for Russia-Ukraine peace talks
US stocks have traded mixed so far on Thursday, after being hit by mixed headlines from Russia-Ukraine talks. The S&P 500 rose modestly on the day to 4,360 and is targeting a test of 4,400. With the Fed meeting and US data out of the way, investors’ focus will turn to geopolitics and China. US […]
USD/JPY remains confined to range below yearly highs, focus shifts to BoJ
USD/JPY was seen to consolidate its recent gains to the highest level since February 2016. Bulls took a breather amid extremely overbought conditions and modest USD weakness. The policy divergence between the Fed and the BoJ supports the prospects for an extension of the uptrend. The pair USD/JPY fluctuated between tepid gains and minor losses […]
