All eyes on the Federal Reserve rate decision later this week ,if Fed Chair Janet Yellen wants to prove that policymakers are not being pulled along by investors who for years have second-guessed them, this week may offer a rare moment of calm to do so .The Fed is divided enough ahead of its Sept. 20-21 rate meeting that a nudge from its most influential policymaker could make the difference, and even some investors have begun to argue if it is time for the central bank to stop worrying so much about what markets expect. Fed defenders will argue the lack of earnings on savings is offset with lower rates on mortgages and car loans. But not eve[...]
The market was rattled on Friday after weeks of smooth sailing, as it seems like traders are starting to realize that another Fed rate hike could be right around the corner, perhaps even as soon as at this month's FOMC meeting.
After cruising within a 1.5% channel since July, the US main indices descended sharply on Friday, as the NASDAQ dropped 2.5%, with the S&P500 and the DOW following closely with loses of 2.45% and 2.1% respectively.
Friday's events gave the Dollar some tailwind after disappointing data softened the greenback at the begging of the week. The EUR/USD is still hovering around 1.125, failing to make significant m[...]
Weekly market overview – 05/09/2016
After disappointing August US ISM Manufacturing report, which showed US manufacturing production contracted for the first time since February, the August US Nonfarm Payrolls report was duly a letdown. U.S. employment growth slowed more than expected and after two straight months of robust gains and wages were tepid.
Market participants, at least those still active before the summer ended, didn’t seem to think the data, in aggregate, would be enough to move the Fed one way or the other; if anything, markets are less confident now than they were after Jackson Hole. Heading into the first full [...]
Last Week Euro-zone PMIs came out slightly below expectations, and also the IFO
survey fell short of expectations. This was a light drag on the euro. In the US, new home
sales were encouraging, and also durable goods orders beat expectations. On the other
hand, GDP did not provide a surprise and Yellen remained cautious in Jackson Hole but
her “strengthening case” for a rate hike and the following hawkish clarification from Vice
Chair Fischer certainly gave the dollar a big boost, sending EUR/USD below 1.12 in the
dying hours of the week.
Gold edged lower early on Monday as the dollar strengthened after hawkish comments
USA July payrolls (NFP) increased much more than expected, raising the probability of
an interest rate hike from the Federal Reserve this year.As a result U.S. dollar index,
which measures the greenback’s strength against a trade - weighted basket of six major
currencies, surged to a one-week high and Gold and Silver prices plunged to one-Week
Last week, crude oil futures ended Friday’s session slightly lower due to the
employment data and after a report showed the number of U.S. oil rigs rose for a sixth
straight week. But prices still ended the week with modest gains as technical short-
covering and ba[...]
Previous week ended with a bang, as the referendum results ended into the BREXIT
and it turned out to be a huge surprise, with a 52 (Leave): 48 (Remain). The results
created chaos in financial markets worldwide. The EURUSD fell sharply almost 288 pips
from an opening price, here high to low movement was more than 500 pips.
Mind you that it will take years for the UK to actually exit the EU as trade negotiations
are done and some of the logistics are worked out. Nothing happens today, tomorrow,
next week, next month, or even next year. Meanwhile, this will have no effect on US
companies and other non-EU multi-nat[...]