The economists of Danske Bank they are once again changing their forecasts on the Federal Reserve. They expect 2% rate hikes this year starting in March with a 0.50% increase. US recession fears are rising as the yield curve flattens “We changed our vision of the Fed’s action and now we expect it to raise […]
Tag: U.S.
University of Michigan Consumer Sentiment Index falls to 61.7 points in February vs. 67.5 expected
The University of Michigan consumer sentiment index falls to 61.7 points in February, a much larger drop than expected and to its lowest level since October 2011. FX markets did not see any notable reaction to the recent poor data. According to the preliminary February consumer survey from the University of Michigan, the consumer sentiment […]
AUD/USD breaks above 0.7200 after US inflation report.
Despite US inflation reaching the highest level since 1982, the dollar is weakening. AUD/USD traders faded the downside reaction followed by a 90 pip rally from 0.7140 to 0.7250. Treasury yields rise, led by the 10-year yield, breaking above the 2.00% level. The AUD/USD advances sharply after the release of US inflation data, which rose […]
USD/CAD updates 3-day highs but pulls back below 1.2700 after US inflation report.
USD/CAD seems to ignore the US inflation report, which was higher than estimated. US Treasury yields rise, led by the 10-year Treasury bond yield at 2%. USD/CAD Technical Outlook: Neutral Bias Limited to 1.2650-1.2790 Range. The USD/CAD trims Wednesday’s losses as January US inflation rises to a 40-year high as the US central bank prepares […]
GBP/USD updates daily lows, around the 1.3525 zone after US CPI.
GBP/USD plunged more than 50 pips in the last hour amid a strong rally in USD demand. Higher-than-expected US CPI figures fueled the Fed’s rate hike bets and lifted the dollar. The bears could wait for a sustained break below 1.3500 before placing further bets. The pair GBP/USD witnessed a dramatic turnaround in reaction to […]
China does not fulfill the purchase commitment of the trade agreement with the US.
Amid renewed tensions between the United States and China on the trade and diplomatic front, a Bloomberg News analysis of data shared by the Commerce Department’s Census Bureau showed Tuesday that Beijing is more than 33% below its commitments to purchase goods in the trade agreement with Washington. key details “The Dragon Nation bought 62.9% […]
Non-farm payrolls surprise with a rise of 467,000 in January, exceeding expectations
The January employment report showed figures mostly higher than expectedwhich brought up the dollar in the market. The nonfarm payrolls increased by 467,000, well above 150,000. In turn, the December figures were revised up from 119,000 to 510,000. The rise in payrolls was surprising, not only because of the revision and being above expectations, but […]
Describing inflation as “transient” was a mistake
In an interview with Bloomberg News published on Wednesday, the US Treasury Secretary Janet Yellenadmitted that calling higher inflation “temporary” was a mistakewhile adding that he was defending the size of the Biden administration’s stimulus package. Featured Statements “You have to decide what is the biggest risk you face, and deal with it effectively.” “The […]
JOLTS job openings rise to 10.925 million in December vs. expected drop to 10.3 million
There were 10.925 million job openings in the US at the end of December, more than the 10.3 million expected. The data reinforces the narrative that labor demand in the US is currently very strong. The number of job openings on the last business day of December rose to 10.925 million, the US Bureau of […]
Existing home sales fall 4.6% in December
Existing home sales fell 4.6% in December. The data did not lead to a reaction from the foreign exchange market. US existing home sales fell 4.6% in December, much worse than the expected 0.8% increase, according to data released by the National Association of Realtors on Monday. That pushed the 12-month moving average of sales […]